Search

Allkem Breaches All-Time High

The Allkem Ltd share price has ended the Easter week at an all-time high price of $13.52 after announcing their quarterly activities report.


In morning trade, the major lithium miner’s shares raced to a record high of $14.27.


For the three months ending 31 March, the company reported group revenue of US$235 million and a group gross operating cash margin of US$189 million.


Their Mt Cattlin hard rock operation produced 48,562 dry metric tonnes (dmt) of spodumene concentrate and shipped 66,011 tonnes. Coupled with their average pricing of US$2,178/t, the operation generated record revenue of US$143.8 million. Allkem’s Olaroz Lithium Facility sold of 3,157 tonnes during the quarter, and received a massive US$27,236 per tonne price for its lithium carbonate, recording a revenue of US$86 million.


Upon this news, various analysts have updated their target prices for Allkem especially coupled with consistently rising lithium prices and future growth prospects. For example, Citi maintained their BUY recommendation on the stock with a target price of $16 noting the company's statement that their "...strategy is to leverage its portfolio to maintain 10% market share and be a top three global producer.”


Allkem also expect even higher lithium prices the fourth quarter which will likely break results even further in three months. Because of this reason, Stock Specialist have also updated their analysis and target pricing to $15.80 with a BUY recommendation.