Allkem posts record profit ahead of lithium mega-merger vote
Lithium producer Allkem’s profit soared to a record as its shareholders prepare to vote on a merger with downstream processing specialist Livent later this year.
Full-year profit rose to $US524.6 million ($817.6 million), from $US334.7 million last year, and it also posted a record group revenue of more than $US1.2 billion.
The results came on the back of a stronger second-half performance from its Mt Cattlin mine at Ravensthorpe in Western Australia.
Allkem also achieved record revenue of $US592 million from its brine-based Olaroz operations in Argentina, which are part owned by a Toyota subsidiary.
Mt Cattlin produced almost 131,000 tonnes of spodumene concentrate as the average price achieved for the product more than doubled year-on-year to $US4879 a tonne.
Allkem and New York-listed Livent unveiled merger plans in May that will see a combined entity become the world’s third largest lithium player.
The merger case has focused on the proximity of Allkem and Livent operations and growth projects in Argentina and Quebec, but the group also wants to grow its footprint in WA with Mt Cattlin’s mine life recently extended to 2027-28.
In a joint statement in the annual report, Allkem chairman Peter Coleman and chief executive Martin Perez de Solay, backed the merger to form a leading global integrated lithium chemicals producer.
“Combining the many highly complementary assets of both companies will enhance business-critical scale and global capabilities, strengthening our ability to service customers with a more resilient supply chain,” they said.
Mr Coleman is set to become chairman of the merged entity run by Livent boss Paul Graves, while Mr Perez de Solay takes up an advisory role.
Allkem is considering underground
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