PERTH (miningweekly.com) – Lithium miner Allkem has nearly tripled revenue in the half-year ended December, compared with the previous corresponding period, on the back of higher production from its Olaroz operation, in Argentina, and higher commodity prices.
Group revenue for the interim period increased to $557.8-million, up from the $180.5-million reported in the previous corresponding period, while profit for the period increased from $12.9-million to $219.2-million.
Our 2023 half-year results continue to demonstrate the improving profitability of our existing operations and the strong demand we receive from customers,” said Allkem MD and CEO Martin Perez de Solay.
“Amidst strong demand for lithium products we have delivered first production at the Naraha lithium hydroxide plant and advanced Olaroz Stage 2 to commissioning. Sal de Vida construction is well underway, and James Bay is advancing with approvals received by the federal government for the environmental and social impact assessment.”
Allkem on Friday reported that the Olaroz project had recorded record production of 7 542 t during the period, a 13% increase on the previous record in 2019, and had also generated record revenue of $296-million on the sale of 6 852 t of lithium carbonate, a near four-and-a-half fold increase in revenues.
The sale of low-grade product from both the Mt Cattlin operation, in Western Australia, and Olaroz, generated a further $72-million in revenue.
“With two revenue-generating operations being supplemented in the near future by Olaroz Stage 2 and a strong balance sheet, we are fully funded to complete construction at Sal de Vida and the development of James Bay,” said Perez de Solay.
“Allkem remains focussed on continuing successes of our business, optimising operations and delivering its tier 1 development assets while also advancing the next wave of growth.”
By the end of January, Olaroz Stage 2 had reached 97% completion, and pre-commissioning and commissioning activities were underway, with full commissioning activities expected to commence later in the first quarter of calendar 2023. First production is planned for second quarter of calendar 2023.
Meanwhile, the first two strings of ponds at Sal de Vida Stage 1 are currently at 87% completion and the engineering, procurement and construction contract for the process plant has been awarded. First production is currently estimated in mid-2024.
Development of the Sal de Vida project is being undertaken in two stages with Stage 1 currently in construction targeting 15 000 t/y production capacity.