Allkem: Solid 2H but risks to capital expenditure and pricing

About the author:

Author name:

By Max Vickerson

Job title:

Analyst

Date posted:

24 August 2023, 7:30 AM

Sectors Covered:

Industrials, New Energy

• In a record result NPAT increased 42% YoY to US$441.7m thanks to strong pricing that offset reduced production at Mt Cattlin and softer 2H sales volumes at Olaroz.
• We see risks to consensus lithium price assumptions this year given continued spot market declines and difficult economic conditions in China. We also increase our expectations for capital expenditure with potential delays and cost increases for Sal de Vida and James Bay.
• We retain our HOLD rating with a reduced target price of (login to view).

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