Critical mineral competitors Allkem [ASX:AKE] and Global Lithium Resources [ASX:GL1] posted their latest news this morning, yet both remained relatively flat in the share market.
Allkem updated shareholders on its financial and operational activities up to 31 March, as provided at the 2023 Macquarie Australia Conference, while Global Lithium was more focused on its large-scale exploration programs.
AKE shares were worth $12.6 at the time of writing, barely moving on the last closing price, while it was a similar story for GL1, trading at $1.49 at time of writing. Both are hovering above the wider market, far from the highs achieved last year:
Source: TradingView
Allkem’s Macquarie Australia Conference highlights
Allkem presented at the 2023 Macquarie Australia Conference this morning and shared that group revenue had hit US$874 million to 31 March this year and US$752 gross profit.
The group’s gross profit margin was 86%, and the company tallied its net cash balance by the end of March was US$578 million.
Allkem has now produced 11,644 tonnes of lithium carbonate from its Olaroz operations and 72,925 dry metric tonnes spodumene from Mt Cattlin.
Pricing for lithium carbonate during the fourth quarter was US$42,000 a tonne.
As for project developments, Allkem has completed 98% of Olaroz Stage 2, with first production now passed at the Naraha Lithium Facility.
The facility is the first of its kind to be built in Japan, designed to convert primary-grade lithium carbonate feedstock into purified battery-grade lithium hydroxide from Olaroz.
Sal de Vida Stage 1’s first two strings of ponds are 90% complete, and federal approval has been given at James Bay, Quebec.
Allkem says it’s uniquely positioned to capture global growth in the EV supply chain with access across Asia, Europe, and the US.
Source: AKE
Global Lithium projects update
Another critical mineral miner to provide an update today was Global Lithium, who announced that its Manna Lithium Project is on track to begin its 50,000-metre RC (Reverse Circulation) drilling program and spies extension options — yet these will be based on initial drilling results.
High-grade lithium bearing pegmatite extensions of the Manna deposit will be a key focus for the group’s exploration campaign this year, and with a gravity survey over the deposits now completed, data processing and interpretation is underway.
As for the miner’s Marble Bar Lithium Project in WA, a 20,000 metre RC drilling program to test Corridor 2 lithium targets is due to commence, and an IP survey is planned across Twin Veins to investigate further potential and more drilling to test for gold and base metals.
Global Lithium’s combined Mineral Resource across its two hard-rock lithium projects in WA currently stands at 50.7Mt at 1.0% Li2O.
Geology manager Stuart Peterson commented:
‘The Company is well placed to make further significant discoveries within its large tenement holding at both of its 100% owned lithium projects.
‘The Manna Project has demonstrated to be a very productive system with the large 32.7Mt @ 1.0% Li2O deposit that was proven up late last year.
‘The MBLP has a very large land holding and up to 20km of prospective strike length still to explore. I look forward to providing regular updates from the 2023 exploration programs across both projects throughout the year.’
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Regards,
Fat Tail Commodities
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