Allkem has capitalised on the buoyant lithium market to post a record half-year revenue for the second half of 2021.
The company reported revenue of $US192.3 million ($267.91 million) across the six months, accruing $US114.9 million ($158 million) from the Mt Cattlin lithium mine in Western Australia and $US65.6 million from the Olaroz lithium operation in Argentina.
Mt Cattlin revenue was derived from 96,871 dry metric tonnes (dmt) of spodumene concentrate sold in the half year, with spodumene trading at an average price of $US1186 per tonne from the merger completion date (August 25) onward. Mt Cattlin had a gross profit margin of 62 per cent.
Olaroz generated its revenue from 5915 tonnes of lithium carbonate sold in the half year. Allkem’s Olaroz revenue jumped 143 per cent from the second half of 2020 as average free on board (FOB) pricing for lithium carbonate increased by 218 per cent.
Allkem delivered a net profit after tax (NPAT) of $US13 million ($17.9 million) in the half-year. In the second half of 2020, the company recorded a loss of $US29.1 million ($40.07 million).
“Post-merger we achieved record revenue for the group, not only from strengthened pricing but from successfully and safely producing high-quality lithium products from our global operations,” Allkem managing director and chief executive officer Martin Perez de Solay said.
“Amidst surging demand for lithium products and continued challenges arising from the COVID-19 pandemic, our team also achieved significant advancements at all our development assets across the globe with both Olaroz stage two and Naraha on the cusp of commissioning this calendar year.”
The stage two expansion of Olaroz will enable Allkem to produce an additional 25,000 tonnes per year of lithium carbonate. First commissioning is expected in the second half of 2022.
Allkem is constructing the Naraha lithium hydroxide plant in Japan, with first production expected in the first half of this year.
Galaxy Resources and Orocobre completed their merger on August 25 2021 before rebranding as Allkem. Allkem’s share price was $9.05 at the time of writing.