Eye on Lithium: Allkem rakes in the dough, says spodumene prices will increase in Sept quarter

Allkem posted record production for June Qtr, expects prices to increase
Leo Lithium secures US$40 million debt facility for the Goulamina Lithium Project
Galan Lithium plans to kick off Environmental Impact Assessment at Argentinan project

All your ASX lithium news for Tuesday, July 19

Lithium miners are raking in the cash lately despite Goldman Sachs’ bear call.

Chinese battery makers are still willing to pay upwards of US$70,000/t to get chemicals for electric vehicles in a tight market.

Last week Pilbara Minerals (ASX:PLS) raked in US$6188/dmt for a 5.5% Li2O cargo of spodumene in its latest auction – down from the US$7017/t 6% price received in a pre-auction bid last month – but still extraordinary given the first auction last July garnered a price of just US$1250/dmt.

And today, notwithstanding some operational issues with grades, Covid, recoveries and stripping ratios at its Mt Cattlin spodumene mine, Allkem (ASX:AKE) says it produced a record 193,563t of spodumene concentrate in FY22.

That included just 24,845t in the June quarter (37,8437dmt of shipments), but still generated record revenue of US$188.9m with a remarkable gross margin of 84% on average pricing of US$4992/dmt for spodumene at a grade of 5.4%.

As Stockhead’s Josh Chiat points out, that price is remarkable because it’s well over double the US$2178/dmt Allkem pulled in the March quarter.

Plus, at 5.4% it is well below the benchmark 6% Li2O grade normally referenced in spot pricing and revenue significantly outstripped the previous quarter’s US$143.8m on much weaker production.

The company says it expects to see relatively stable prices in lithium chemicals, carbonates and hydroxide and a continued increase in spodumene prices for the September quarter.

And they’re not alone in that prediction.

#lithium rising in price due to undersupply. The structural deficit is starting to show cracks. Not enough new projects coming online and current producers are unable to simply flick a switch that says ” double production”. Producers & near term prod benefit. https://t.co/NqT0Oa114k

— Lithium Guy (@lithium_guy) July 18, 2022

Here’s how ASX lithium stocks were tracking today:

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Code	Company	Price	% Month	% Week	% Today	Market Cap
TON	Triton Min Ltd	0.027	13%	69%	54%	$22,028,723.10
ADV	Ardiden Ltd	0.008	0%	14%	23%	$17,344,179.81
EPM	Eclipse Metals	0.022	0%	16%	22%	$34,580,275.43
LNR	Lanthanein Resources	0.016	-6%	14%	14%	$11,729,557.98
ESS	Essential Metals Ltd	0.405	9%	17%	11%	$89,967,910.13
LTR	Liontown Resources	1.12	8%	20%	11%	$2,214,147,449.98
AX8	Accelerate Resources	0.032	3%	10%	10%	$7,843,308.07
IR1	Irismetals	0.27	-7%	-4%	10%	$14,608,125.00
MMG	Monger Gold Ltd	0.22	-12%	-4%	10%	$8,008,000.00
KGD	Kula Gold Limited	0.034	36%	6%	10%	$6,670,444.59
MRR	Minrex Resources Ltd	0.034	-8%	6%	10%	$32,864,555.79
INF	Infinity Lithium	0.12	-11%	4%	9%	$45,651,437.26
LSR	Lodestar Minerals	0.0065	-7%	-7%	8%	$10,430,624.09
CRR	Critical Resources	0.04	-13%	8%	8%	$55,056,563.84
GLN	Galan Lithium Ltd	1.07	-1%	12%	8%	$301,355,368.38
GT1	Greentechnology	0.62	-14%	2%	8%	$105,955,044.73
LRV	Larvottoresources	0.21	-13%	17%	8%	$8,098,837.50
AOA	Ausmon Resorces	0.007	17%	40%	8%	$5,572,380.73
CXO	Core Lithium	1	-14%	17%	8%	$1,611,890,615.88
MXR	Maximus Resources	0.05	4%	14%	8%	$14,782,618.21
ARN	Aldoro Resources	0.15	3%	0%	7%	$13,921,224.38
ALY	Alchemy Resource Ltd	0.015	-21%	-9%	7%	$13,343,036.80
SRZ	Stellar Resources	0.017	-11%	13%	6%	$13,428,842.02
VMC	Venus Metals Cor Ltd	0.17	-6%	6%	6%	$25,612,589.28
AAJ	Aruma Resources Ltd	0.069	3%	9%	6%	$10,202,497.70
PLL	Piedmont Lithium Inc	0.525	-26%	5%	6%	$261,147,546.00
LEL	Lithenergy	0.705	-13%	7%	6%	$30,024,750.00
1MC	Morella Corporation	0.018	6%	0%	6%	$87,995,637.76
MIN	Mineral Resources.	47.72	-8%	6%	6%	$8,549,559,379.54
GL1	Globallith	1.11	-9%	6%	6%	$166,633,168.80
MM1	Midasmineralsltd	0.19	-14%	-3%	6%	$10,283,717.52
INR	Ioneer Ltd	0.49	29%	13%	5%	$975,287,724.54
AGY	Argosy Minerals Ltd	0.3475	2%	10%	5%	$447,496,825.71
RLC	Reedy Lagoon Corp.	0.02	11%	18%	5%	$10,591,111.33
PLS	Pilbara Min Ltd	2.475	18%	10%	5%	$7,025,362,186.24
FTL	Firetail Resources	0.22	-28%	-2%	5%	$12,974,325.00
MTM	Mtmongerresources	0.115	0%	-4%	5%	$4,126,103.63
VUL	Vulcan Energy	6.44	20%	23%	4%	$885,812,160.18
GSM	Golden State Mining	0.05	22%	19%	4%	$5,588,223.31
DRE	Dreadnought Resources Ltd	0.05	19%	11%	4%	$136,256,810.45
EFE	Eastern Resources	0.026	13%	8%	4%	$24,860,915.78
ZNC	Zenith Minerals Ltd	0.275	-8%	8%	4%	$91,362,003.94
AML	Aeon Metals Ltd.	0.028	22%	-7%	4%	$26,760,545.72
QPM	Queensland Pacific	0.14	33%	12%	4%	$211,087,772.69
RGL	Riversgold	0.028	-3%	8%	4%	$20,422,151.97
LPI	Lithium Pwr Int Ltd	0.425	10%	5%	4%	$143,149,387.68
NMT	Neometals Ltd	0.995	2%	6%	4%	$526,441,340.16
IGO	IGO Limited	9.85	-7%	2%	3%	$7,209,189,579.76
AOU	Auroch Minerals Ltd	0.06	-10%	-5%	3%	$21,442,704.34
MNS	Magnis Energy Tech	0.305	3%	5%	3%	$285,113,172.06
SYA	Sayona Mining Ltd	0.155	11%	19%	3%	$1,237,012,900.50
TMB	Tambourahmetals	0.155	3%	15%	3%	$6,178,889.70
RIO	Rio Tinto Limited	98.6	-8%	3%	3%	$35,529,103,841.94
RAG	Ragnar Metals Ltd	0.037	-10%	-8%	3%	$13,650,656.00
WR1	Winsome Resources	0.185	-16%	-5%	3%	$24,320,518.92
PAM	Pan Asia Metals	0.39	-20%	-4%	3%	$28,089,691.96
AZL	Arizona Lithium Ltd	0.081	-19%	-1%	3%	$176,446,262.21
AS2	Askarimetalslimited	0.23	-12%	0%	2%	$9,358,710.75
TEM	Tempest Minerals	0.046	24%	12%	2%	$22,714,477.92
MLS	Metals Australia	0.047	-8%	7%	2%	$26,129,664.79
DAF	Discovery Alaska Ltd	0.047	-6%	7%	2%	$10,314,796.11
WES	Wesfarmers Limited	47.06	14%	5%	2%	$52,281,373,558.62
QXR	Qx Resources Limited	0.0285	-2%	6%	2%	$24,062,144.99
CAI	Calidus Resources	0.62	-9%	3%	2%	$248,776,884.38
LRS	Latin Resources Ltd	0.072	9%	11%	1%	$138,108,474.38
AKE	Allkem Limited	9.935	1%	4%	1%	$6,249,049,242.80
PSC	Prospect Res Ltd	0.99	2%	1%	1%	$453,014,272.76
MQR	Marquee Resource Ltd	0.0655	-2%	2%	1%	$20,515,142.70
ASN	Anson Resources Ltd	0.13	24%	18%	0%	$133,628,603.55
AVZ	AVZ Minerals Ltd	0.78	0%	0%	0%	$2,752,409,203.44
LPD	Lepidico Ltd	0.03	11%	11%	0%	$195,215,145.99
TKL	Traka Resources	0.005	-38%	-17%	0%	$3,443,872.81
BMM	Balkanminingandmin	0.19	0%	9%	0%	$6,222,500.00
AM7	Arcadia Minerals	0.145	-17%	-3%	0%	$6,771,194.34
BYH	Bryah Resources Ltd	0.028	-18%	-3%	0%	$6,333,800.90
DTM	Dart Mining NL	0.062	5%	-7%	0%	$8,386,129.92
EMS	Eastern Metals	0.13	0%	-13%	0%	$4,628,000.00
IMI	Infinitymining	0.13	0%	-7%	0%	$7,475,000.00
MMC	Mitremining	0.125	4%	-4%	0%	$3,385,637.50
SHH	Shree Minerals Ltd	0.008	0%	14%	0%	$9,907,895.14
TSC	Twenty Seven Co. Ltd	0.003	0%	20%	0%	$7,982,441.72
WCN	White Cliff Min Ltd	0.013	-32%	0%	0%	$8,496,843.71
WML	Woomera Mining Ltd	0.015	-17%	-6%	0%	$10,302,495.99
PNN	Power Minerals Ltd	0.42	-8%	4%	0%	$25,837,083.30
AZI	Altamin Limited	0.096	1%	1%	0%	$37,604,808.19
ENT	Enterprise Metals	0.01	-9%	0%	0%	$6,446,468.55
KAI	Kairos Minerals Ltd	0.023	15%	5%	0%	$45,128,150.29
AVW	Avira Resources Ltd	0.003	-14%	0%	0%	$6,356,370.00
NVA	Nova Minerals Ltd	0.715	19%	4%	0%	$128,844,633.78
BNR	Bulletin Res Ltd	0.11	-15%	0%	0%	$32,185,021.00
RMX	Red Mount Min Ltd	0.007	40%	40%	0%	$11,496,547.01
A8G	Australasian Metals	0.225	7%	13%	0%	$9,263,361.15
NWM	Norwest Minerals	0.031	3%	0%	0%	$5,598,829.00
IPT	Impact Minerals	0.008	0%	0%	0%	$19,850,964.45
SRI	Sipa Resources Ltd	0.038	9%	-5%	0%	$7,790,942.51
G88	Golden Mile Res Ltd	0.028	-30%	-3%	0%	$5,704,513.19
EVR	Ev Resources Ltd	0.028	8%	8%	0%	$25,927,553.99
WC8	Wildcat Resources	0.025	-17%	0%	0%	$16,131,818.18
CZL	Cons Zinc Ltd	0.02	0%	0%	0%	$7,267,156.26
M2R	Miramar	0.087	6%	-3%	0%	$5,584,239.68
XTC	Xantippe Res Ltd	0.008	-11%	14%	0%	$63,689,188.51
LRD	Lordresourceslimited	0.2	11%	0%	0%	$6,356,924.20
WMC	Wiluna Mining Corp	0.205	-41%	-5%	0%	$74,238,030.68
AUN	Aurumin	0.15	15%	0%	0%	$16,383,487.80
KTA	Krakatoa Resources	0.05	-7%	2%	0%	$17,235,495.85
DAL	Dalaroometalsltd	0.1	5%	-13%	0%	$2,987,500.00
TKM	Trek Metals Ltd	0.059	-6%	7%	0%	$18,325,998.85
CY5	Cygnus Gold Limited	0.15	-3%	0%	0%	$17,697,797.25
TUL	Tulla Resources	0.55	7%	3%	0%	$88,119,279.60
EMH	European Metals Hldg	0.785	9%	15%	-1%	$94,691,664.14
LIS	Lisenergylimited	0.755	72%	34%	-1%	$126,094,782.12
LLL	Leolithiumlimited	0.42	0%	9%	-1%	$419,329,187.60
EUR	European Lithium Ltd	0.07	23%	1%	-1%	$98,298,890.32
LKE	Lake Resources	0.7	-55%	4%	-1%	$986,694,033.26
LIT	Lithium Australia	0.068	-3%	-3%	-1%	$71,443,243.43
JRL	Jindalee Resources	2.46	-14%	-5%	-2%	$143,447,415.00
STM	Sunstone Metals Ltd	0.047	18%	7%	-2%	$124,629,428.11
KZR	Kalamazoo Resources	0.2	-20%	-18%	-2%	$29,764,846.67
SCN	Scorpion Minerals	0.067	-7%	-9%	-3%	$22,896,352.25
RDT	Red Dirt Metals Ltd	0.32	-12%	-9%	-3%	$100,502,960.58
OCN	Oceanalithiumlimited	0.48	0%	39%	-3%	$16,594,875.00
CHR	Charger Metals	0.45	22%	5%	-3%	$15,150,181.28
RAS	Ragusa Minerals Ltd	0.076	-20%	-10%	-4%	$9,933,156.32
FG1	Flynngold	0.096	-26%	-23%	-4%	$6,406,105.00
ZEO	Zeotech Limited	0.047	-6%	4%	-4%	$74,720,858.03
TYX	Tyranna Res Ltd	0.02	18%	5%	-5%	$32,179,574.01
PGD	Peregrine Gold	0.42	18%	4%	-6%	$17,037,567.71
THR	Thor Mining PLC	0.01	11%	0%	-9%	$11,757,910.70
GW1	Greenwing Resources	0.215	-7%	-2%	-10%	$29,579,363.76
FRS	Forrestaniaresources	0.13	-16%	-19%	-13%	$4,662,945.60
VKA	Viking Mines Ltd	0.006	-14%	-14%	-14%	$7,176,809.02

A total of 68 stocks were in the green today, 41 were flat and 22 were red.

Who’s got news out today?

LEO LITHIUM (ASX:LLL)

The company has agreed to terms with JV partner Ganfeng Lithium on an expandable US$40 million debt facility for the Goulamina Lithium Project.

LLL says the completion of the facility agreement places it in the robust position of having sufficient funds to cover its share of the Stage 1 development capital costs for the project – which are currently estimated at US$255 million.

Plus, it completes the company’s initial offtake marketing efforts and secures Ganfeng 100% of the spodumene product offtake from Stage 1 of the Project.

“The finalisation of the debt funding package from Ganfeng significantly de-risks development and means we are now able to fully focus on accelerating development work on the Goulamina Project as we jointly bring Goulamina into production,” MD Simon Hay said.

GALAN LITHIUM (ASX:GLN)

Galan has appointed Ausenco as the Environmental Impact Assessment (EIA) consultant for its Hombre Muerto West Lithium Project in Catamarca Province, Argentina.

If you don’t speak Spanish that translates as Dead Man West but probably has nothing to do with a real dead man. We hope.

Anyway, the EIA is part of the Definitive Feasibility Study (DFS) and should kick off in around two weeks.

MD Juan Pablo Vargas de la Vega says Ausenco’s record and professional standing within the mining industry is second to none and “they will be ably supported by their local Argentinian representatives who have a strong working knowledge of the Catamarca environs.”