Shares of Australian lithium miners to end HY at loss as weak China demand hurts prices

Elevra Lithium

30/06/2023 24:10

** Shares of Australia-listed lithium miners set to record
losses for first half year ended June 30 due to a weakness in
metal prices
    ** While lithium prices have rebounded in recent months,
they are still down at least 34% YTD, according to an index
tracked by Benchmark Mineral Intelligence, hurt by soft demand
for electric vehicles in China
    ** Core Lithium's  CXO.AX  shares down 11% for H1, on track
for its first half-yearly decline since H2 2019
    ** Mineral Resources  MIN.AX  and Sayona Mining  SYA.AX 
have fallen 7% and 8% YTD, respectively
    ** Lynas Rare Earths  LYC.AX , the world's biggest rare
earths producer outside China, is down over 10%, eyeing its
third consecutive HY of losses    
    
    
    ** The sector has seen significant M&A activity in H1, with
high profile mergers fueling hopes for further consolidation in
the global lithium industry
    ** Shares in Allkem  AKE.AX  are up 42% in H1 after
announcing a tie-up with Livent  LTHM.N  in May to create the
world's third-biggest producer of lithium
    ** Liontown Resources'  LTR.AX  stock price has more than
doubled in H1, as the company snubbed a $3.7 bln bid in March 
from world's biggest lithium producer Albemarle Corp  ALB.N 
    ** Despite the broader price weakness, shares of pure-play
lithium firm Pilbara Minerals  PLS.AX  up 32%; IGO Ltd  IGO.AX 
set to gain nearly 12% YTD 
    

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Performance of Australian battery stocks    https://tmsnrt.rs/3prAQ36
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 (Reporting by Harish Sridharan and Nausheen Thusoo in
Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))