In afternoon trade, the Allkem Ltd (ASX: AKE) share price is edging higher.
At the time of writing, the lithium miner's shares are up almost 1% to $14.00.
This means the Allkem share price is now up almost 14% this week.
Why is the Allkem share price rising?
The Allkem share price is rising today after investors responded positively to the company's full year results for FY 2022.
For the 12 months ended 30 June, Allkem reported revenue of US$770 million and a gross profit of US$605 million. This represents a 9x and 13x increase, respectively, over the prior corresponding period.
This was driven by a combination of factors including sky high prices and the merger with Galaxy Resources.
In respect to the former, Allkem averaged US$2,221 per tonne for its spodumene and US$23,398 per tonne for its lithium carbonate. This represents a 435% and 370% increase, respectively, over the same period last year.
Mt Cattlin production guidance downgrade
One slight disappointment that could be holding back the Allkem share price a touch today was its production outlook for the Mt Cattllin operation.
It has downgraded its Mt Cattlin lithium spodumene production guidance for FY 2023 from the range of 160,000 to 170,000 tonnes to 140,000 to 150,000 tonnes. This reflects recent results from the operation, as well impacts from on-going labour shortages in Western Australia.
