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- Allkem (AKE) announces a record profit for the 2023 financial year, posting gains of more than A$818 million
- Group revenue came in at greater than US$1.2 billion
- Earnings (EBITDAIX) clocked in at US$909.8 million
- Gross cash margins stood at 89 per cent for Olaroz and 78 per cent for Mt Cattlin
- The company winds up FY23 with $648.4 million in cash
- AKE shares last traded at $13.87
Allkem (AKE) has announced a record profit for the 2023 financial year, reporting gains of more than US$524.6 million (A$818 million).
Group revenue exceeded $1.2 billion, marking a 1.6 per cent year-on-year (YoY) increase. Earnings (EBITDAIX) totalled $909.8 million.
The company’s Olaroz lithium facility in South America was the driving force behind this revenue surge, experiencing a 102 per cent increase to $592 million in revenue, selling 13,186 tonnes and producing 16,703 tonnes. This marked a substantial 30 per cent YoY increase, surpassing the previous record set in 2022.
Allkem attributed its impressive results, in part, to favourable commodity prices. The company observed a doubling of the average realised pricing for lithium carbonate since the end of FY22, with prices reaching $43,980 per tonne.
Additionally, the Mt Cattlin project achieved record-breaking production figures. The company produced 130,980 dry metric tonnes of spodumene concentrate, with reported on-site operational improvements.
Revenues from Mt Cattlin also reached a record, totalling $615.6 million, a 36 per cent YoY increase, mirroring Olaroz’s performance. Similar to carbonate, the average price for spodumene more than doubled YoY to $4,880 per tonne.
Gross cash margins stood at 89 per cent for Olaroz and 78 per cent for Mt Cattlin.
At the end of FY23, the company boasted $648.4 million in cash to “fully fund committed projects.” Allkem continues to develop its comprehensive vision for Olaroz and the Sal de Vida production facility in Argentina.
It’s worth noting that Allkem is also expanding into James Bay, Canada’s fastest-growing lithium region. The company increased its on-site resource by 173 per cent, now containing 110 million tonnes with 1.3 per cent lithium content.
AKE shares last traded at $13.87.
