Chile’s SQM, the world’s second-largest lithium group, saw its shares fall more than 7% on Thursday, in line with the rest of the sector, as it reported drops in revenue, costs and profits for the quarter ended. in September. Like its competitors, including the American companies Albemarle, IGO, Mineral Resources, Livent and Pilbara Minerals, SQM anticipates new demanding situations in the next quarter and until 2024.
In the September quarter and in the nine months through September, SQM disclosed a decline in its cash and earnings income. Net profit in the third quarter fell 56. 4% from a year earlier, largely due to declining lithium prices, which had hit an all-time high of about $89,000 a tonne a year ago this month but have since declined 70% or more on some notes.
Despite the production of other products such as fertilizers and chemicals, similar to Albemarle’s product line, SQM’s net profit source for the September quarter was $479. 4 million, well below the $511. 2 million expected by the market. 38%, to $1,840 million, between July and September.
In its quarterly report, SQM noted, “We recorded higher sales volumes in the third quarter of 2023, reaching an all-time high of more than 43,300 metric tons, approximately 4% more than at the same time last year. Lithium earnings were impacted by a reported average value that was about 47% lower in the quarter compared to the average values seen in the third quarter of 2022. Most of our sales contracts are associated with price indices that reflect market price trends, and those indices have seen a notable decline since the beginning of the current year. This trend is likely to continue for the rest of the year. Given stock levels of battery materials and lithium-based chemicals and the additional source of lithium entering the market during the year, our sales volumes in the fourth quarter of 2023 may ultimately be similar to or lower than the sales volumes reported during the third quarter of 2023. “
Ricardo Ramos, CEO of SQM, said: “The effects of the third quarter of 2023 were impacted by lower average promotion costs in the lithium and fertilizer business segments,” although he also highlighted that this was “partially offset by higher sales volumes in comparison. “to the same quarter. ” last year’s era and higher costs of promoting iodine.
For the nine months ended September 30, SQM reported a net source of revenue of $1,809 million, down 34% from $2,755. 3 billion at the same time in 2022. Revenue for the nine months also declined, totaling $6. 156 billion, compared to the $7. 577 billion reported for the first nine months of 2022.
Like other manufacturers such as Albemarle, IGO and Pilbara, SQM plans to stockpile steel and spodumene this quarter to wait out the continued fall in costs and weak demand. SQM will increase its lithium inventories as it proceeds to produce at full capacity to prepare for when inventories return to general levels and visitor purchasing resumes.
Carlos Díaz, vice president of Lithium at SQM, explained: “The concept is to be ready when inventories return to general levels and visitor purchases are reactivated. ”
Felipe Smith, senior vice president of lithium advertising at SQM, attributed the price drop to lower demand for electric vehicles (EVs) outside China and the main component supplier, causing excess inventories throughout the supply chain. of batteries. Smith said that while building inventory, SQM would contract sales volumes in line with market indices and had also entered into several new long-term indexed sourcing agreements.
Regarding SQM’s A$1. 61 billion bid for Azure Minerals, SQM executives did not provide any updates on a conference call after the results were released. However, it’s worth noting that Gina Rinehart’s Hancock Prospecting and Chris Ellison’s Mineral Resources acquired enough Azure shares (around 33%). among them) to secure SQM’s offer of $3. 52 consistent with the stock, which was outperformed in the market.
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Deep Leads Resource Increases Across the Board: Quality, Tonnage and Target Area ABx Group has reported a 30% increase in its mineral resource estimate (MRE) at the rare ion adsorption clay earth deposit ( IAC) from Deep Leads in northern Tasmania. The accumulation at MRE comes from 36 assayed extension wells, representing significant northward extension to the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trading company, signed a memorandum of understanding for up to 25,000 t/year. Subject to execution, this is a feat as Ford and Hanwa are in a position to engage in longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing, but they should, i. e. if Ford and Hanwa inject new capital into LKE, it will further reduce the risk of the financing of the assignment and thus ensure that LKE and Kachi are fully funded.
Two recent gravity studies have particularly exceeded expectations and revealed the possibility of expanding the existing MRE at Throssell Lake, as well as a significant expansion opportunity at Yeo Lake. This reinforces the prospect of a multi-decade SOP Tier 1 production center around Throssell Lake.
TMG is currently completing paintings for the planned PFS in early 2023, adding start of drilling in Q3 2022, evaporation testing and permitting activities. The effects of these systems will affect the SFP and any long-term resource improvements.
SOP reference prices have risen to around 940 USD/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that every 10% accumulated in value effects at a cumulative $144 million in NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an allocation NPV of approximately $1. 4 billion.
Despite the fall in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to show an improvement in its main indicators.
WT Financial Group Limited (WTL) is a diversified money company under development, founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. of WTL under its broker organization businesses Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive research report on ASX-listed biotechnology company Immutep Ltd (ASX: IMM). He was so inspired by IMM that Corporate Connect found it imperative to publish a follow-up report appraising the company. since the market did not see the great prospects of eftilagimod alfa (efti).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.