Output cuts, investment delays and impairments by lithium firms key - Macquarie

Elevra Lithium

14/01/2024 22:54

** Analysts at Macquarie to focus on production cuts,
capital investments being postponed and impairments being
announced by lithium miners in the near term
    ** Says a surplus in production of the material used for
batteries in electric vehicles has pushed down prices
    ** Lowers FY24 EPS estimates on Aussie lithium miners
Pilbara Minerals  PLS.AX  and Sayona Mining  SYA.AX  by 9% and
2% respectively
    ** Discretionary capex by lithium producers could be delayed
to preserve cash in this soft price environment - Brokerage
    ** Adds strategic investments made over the last year by
lithium miners could be subject to fair value adjustments as
prices fall
    

 (Reporting by Rishav Chatterjee in Bengaluru; editing by Diane
Craft)
 ((Rishav.Chatterjee@thomsonreuters.com;))