Lithium miner Allkem's Q4 update shows upside valuation potential of its assets - Jefferies

Allkem

27/07/2023 20:38

** Jefferies says lithium miner Allkem's  AKE.AX 
operational performance at both Olaroz and Mt Cattlin projects
exceeded its expectations during the quarter
    ** AKE's Q4 revenue eased slightly as weak lithium prices
offset higher output at Mt Cattlin project, while its Olaroz
Stage 2 lithium facility achieved first wet production in
mid-July
    ** Jefferies says Q4 update demonstrated upside valuation
potential of the two assets
    ** Brokerage says continuation of strong results in Sept.
quarter may support contingency of shareholders wanting a bigger
share for Allkem in the merger with U.S-based Livent  LTHM.N  
    ** Successful commissioning of Olaroz Stage 2, final 
permitting for James Bay, updated feasibility studies at Mt 
Cattlin remain near-term influences for AKE - Jefferies
    ** Twelve of 19 analysts rate the stock "buy" or higher, six
"hold" and one "sell"; median PT is A$16.85 - Refinitiv data
    ** As of last close, stock up 36.3% YTD

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))