(Kitco News) - Lithium producer Allkem (TSX: AKE) reported Tuesday that its Mt Cattlin mine in Australia achieved record financial year 2022 production of 193,563 dry metric tonnes of spodumene concentrate.
The company said that annual production at the Olaroz Lithium Facility in Argentina reached a new record of 12,863 tonnes of lithium carbonate for FY22, 47% of which was battery grade material in line with targets.
Allkem added that strong operating performance and high sales prices have delivered record group revenue for the quarter of approximately US$337 million and a group gross operating cash margin of approximately US$292 million (~A$0.67/share for the June quarter).
Group revenue for FY22 (including Mt Cattlin from merger date, 25 August 2021) was US$762 million and group gross operating cash margin for the same period was approximately US$594 million (excluding corporate and other non-operating costs).
At 30 June group cash was US$663.2 million, an increase of US$213.1 million from 31 March 2022.
“Strong cashflow and a robust balance sheet are expected to fund delivery of an aggressive growth strategy to increase production threefold by 2026 and to maintain 10% market share. The increase in production will be underpinned by the forecast growth in demand needed for the transition to electric vehicles,” the company said in a statement.
Importantly, Allkem pointed out it is entering a period of significant growth with Olaroz Stage 2 and Naraha to begin production later this year, Sal de Vida to commence production in 2023 and James Bay in 2024.
The company’s portfolio includes lithium brine and borax operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan.
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