Allkem Limited has issued the Allkem Group’s financial results for the fiscal year ending 30 June 2023.
The Group’s EBITDAIX was $909.8 million, with a total profit of $524.6 million for the year from continuing operations, including a one-off charge related to a merger with Livent, financial instrument gains, foreign exchange losses, and net finance income of $482 million.
“Our strategy to create a leading global integrated lithium chemicals producer will be accelerated by the proposed merger with Livent,” Allkem Managing Director and CEO Martin Perez de Solay said.
The Group’s net assets climbed to US$3,573.8 million as of 30 June 2023 (US$3,081.4 million as of 30 June 2022), including total cash balances of US$821.4 million (30 June 2022: US$663.5 million).
For the fiscal year, the Group capital expenditure was US$502.9 million (30 June 2022: US$238.7 million), while Mizuho loans were reduced by US$37.6 million.
“We have achieved outstanding full year results and demonstrated the quality and profitability of our operations. FY23 Revenue and EBITDAIX hit new records and were underpinned by record production at Olaroz and strong performance at Mt Cattlin, which achieved record run rates towards the end of the year,” Perez de Solay stated.
Allkem has reported that Olaroz Stage 2 began wet production in mid-July, with commissioning expected to continue and build up over the next 12-18 months.
Meanwhile, Naraha successfully completed its first lithium hydroxide production in late 2022, and battery-grade validation with customers began in July.
Allkem noted that the Olaroz resource rose 27% to 20.7Mt LCE, providing excellent expansion prospects while the Ore Reserve Update for Mt Cattlin revealed an extra 4-5 year mine life until 2027-2028.
The Catamarca Government has granted EIA approval to Sal de Vida, allowing for the anticipated 15ktpa production capacity. A resolution authorising the development of the solar farm was also issued, as were water easements.
The liner installation on the first two strings of ponds at Sal de Vida Stage 1 is complete, earthworks for string 3 are ongoing, and the construction of the carbonation plant has begun.
The James Bay ESIA received federal approval in January 2023, and a new high-grade zone of mineralisation was discovered.
The total resource at James Bay rose 173% after the reporting period to 110.2 Mt @ 1.30% Li2O.
“Our team has reached significant milestones to capture global growth by increasing our production capacity and product offering. Amidst strong demand for lithium we delivered first production at the Naraha Lithium Hydroxide Plant and achieved first production at Olaroz Stage 2. Sal de Vida construction is well underway, and James Bay is advancing with approvals received by the Federal government for the ESIA,” Perez de Solay said.
“With two revenue generating operations being supplemented in the near future by Olaroz Stage 2 and a strong balance sheet, we are fully funded to complete construction at Sal de Vida and the development of James Bay,” he added.
