The Allkem Ltd (ASX: AKE) share price is down 0.6%.
The S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $15.79. In morning trade today shares are swapping hands for $15.69 apiece.
This comes following the release of Allkem's quarterly activity results for the three months ending 30 June.
Read on for the highlights.
Allkem share price dips despite strong cash generation
- Quarterly revenue of approximately US$334 million
- Gross operating cash margin of approximately US$274 million (82%)
- Spodumene sales of 46,787 dry metric tonnes (dmt) at an average sales price of US$4,297 /dmt CIF for SC 5.3%
- Net cash of US$648 million as at 30 June, up US$71 million from 31 March
- Net cash generated from operations and corporate of US$220 million
What else happened during the quarter?
The Allkem share price is in the red in early trade today despite the lithium miner reporting record annual production out of its Olaroz Lithium Facility. Olaroz produced 16,703 tonnes of lithium carbonate with a record 5,059 tonnes produced in the June quarter. That's up 47% from the previous corresponding period (pcp).
Lithium carbonate sales of 3,430 tonnes generated Olaroz quarterly revenue of around US$132 million, with a gross cash margin of 85%. Excluding shipments to Naraha, Allkem reported its third party lithium carbonate sales averaged US$38,062/tonne free on board (FOB) over the quarter.
Some strong reported results at Mt Cattlin also aren't lifting the Allkem share price today.
According to the release, Mt Cattlin produced 130,984 tonnes of spodumene concentrate over the full year, exceeding guidance. 58,059 dmt at 5.3% Li2O grade was produced during the quarter, a 50% increase from the March quarter.
And Mt Cattlin's Ore Reserve update confirmed an additional four to five year mine life via open pit methods.
In another quarterly highlight, Allkem and Livent announced a definitive agreement to "combine in an all-stock merger of equals to create a leading global integrated lithium chemicals producer".
And Allkem signed a US$130 million sustainability-linked green project financing facility with the International Finance Corporation for its Sal de Vida Stage 1 project.
Allkem share price snapshot
The Allkem share price has been a very strong performer in 2023, up 43% since the opening bell on 3 January.
