Allkem’s revenue drops on lower Mt Cattlin output

Credit: Allkem Ltd.

Australian lithium miner Allkem Ltd on Wednesday posted a 11.1% sequential drop in second-quarter revenue as lower output from its Mt Cattlin operations offset strong lithium prices amid tight supply of the battery metal.

Limited ore availability pulled down production at the company’s Mt Cattlin operations in Western Australia to 16,404 dry metric tonne (dmt) of spodumene concentrate, from 17,606 dmt in the prior quarter.

The spodumene concentrate market remains tight with limited material available to the open market due to most of the product already being locked under existing offtake arrangements, the company said in a statement.

Allkem earned $5,284 per dmt from its Mt Cattlin operations, 5.1% higher than what it made in the last quarter.

Tight supply and surging demand for electric vehicles amid a global push towards decarbonization have powered a rally in lithium prices over recent years.

The company expects pricing in the March quarter to be 5% above the December quarter.

The Buenos Aires, Argentina-headquartered lithium miner’s revenue was $265 million for the three months ended Dec. 31, compared with $298 million in the previous quarter.

(By Upasana Singh and Jaskiran Singh; Editing by Devika Syamnath)

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