Allkem: Big production numbers but sales were soft

About the author:

Author name:

By Max Vickerson

Job title:

Analyst

Date posted:

28 July 2023, 7:00 AM

Sectors Covered:

Industrials, New Energy

• Allkem's (ASX:AKE) production hit new a record at Olaroz in the last quarter but the soft lithium market conditions in April – May took a toll on sales volumes.
• The lithium market remains tightly balanced and the potential for volatility remains. Our base case view is that lithium prices will continue to normalise in FY24.
• We retain our HOLD rating with an increased target price which includes some of the merger cost synergies.

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