(Kitco News) - Lithium producer Allkem (TSX: AKE) announced Thursday that for the full financial year ended 30 June 2022 (FY22), its Mt Cattlin mine in Australia achieved record production of 193,563 dry metric tonnes of spodumene concentrate.
The company also reported 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 excellent operating performance and highly supportive market conditions generated group gross profit of US$605 million with group EBITDAIX of US$513 million and consolidated net profit after tax of US$337.2 million (FY21: net loss of US$89.5 million).
According to the company's statement, these positive financial results were achieved primarily due to improved product prices, focused operational management and comprehensive cost control mitigating inflationary pressures.
"Record financial results have been achieved in the first year of the highly successful merger of Orocobre Limited and Galaxy Resources. The merger has generated substantial value through the combination of outstanding operating assets and development projects," Allkem noted in its press-release.
The company pointed out it has restructured around the global portfolio and continues to strengthen the management, operating and development teams by attracting the highest quality personnel.
Importantly, Allkem said that new development and expansions are expected to see the business expand three-fold by 2026 with the aim of maintaining 10% market share as the lithium industry continues to grow with the increasing adoption of electric vehicles.
As for development projects, the company noted that Olaroz Stage 2 has now reached over 91% completion and first production is still anticipated late H2 CY22, adding that successful completion of this project will deliver material new production from H2 FY23 onwards.
Construction of the Naraha lithium hydroxide plant in Japan was completed during the year, with first production expected early Q4 CY22. Once product qualification is complete, this plant will provide Allkem with exposure to the high value lithium hydroxide market, the company said.
Construction at Sal de Vida commenced in January 2022, the first pond has been filled, and commissioning and first production continues to be expected by H2 CY23.
Allkem is a specialty lithium chemicals company with a global portfolio of diverse projects. 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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