Why is the Allkem share price rising on Tuesday?

The lithium company has updated its ore and mineral reserve estimates for Mt Cattlin.

| More on:
Man standing in a mine with mining vehicles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Allkem share price is up almost 2% on Tuesday to $15.11 following an update from the ASX lithium company
  • The company has updated its ore reserve and mineral reserve estimates for the Mt Cattlin mine in Western Australia 
  • The Allkem share price is up 36.7% in 2023 and up 28% over the past 12 months

The Allkem Ltd (ASX: AKE) share price is up 1.96% on Tuesday to $15.11 following an update from the ASX lithium company.

Allkem has updated ASX investors on its ore and mineral reserves at its Mt Cattlin mine in Western Australia.

Let's take a look at the details.

What did Allkem announce on Tuesday?

The total ore reserve at Mt Caittlin as of 30 June was 7.1Mt at 1.2% Li2O.

This is down from 7.8Mt as of 31 March.

The total mineral resource estimate is now 9.4Mt.

The update largely reflects depletion due to mining activities since 31 December 2022.

Allkem says there are four to five years of open pit mining work left at Mt Cattlin.

The company is now waiting for an underground feasibility study to be completed in 2024.

Allkem said:

It will enable a variety of scenarios to be modelled and will ensure an optimised future mining method is selected.

What's happening with lithium prices?

The battery-grade lithium carbonate price is currently just under US$39,000 per tonne.

This is well down on its record high of almost US$85,000 in November 2022, but up from its 18-month low of US$23,400 reached in April this year.

The fall since November is mainly due to China ceasing electric vehicle subsidies earlier this year.

Allkem share price snapshot

The Allkem share price is up 36.7% in 2023 so far and 28% higher over the past 12 months.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

Guess which ASX mining stock is rocketing on deal with lithium giant SQM

The two parties are looking at a potentially significant lithium project in Europe.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Pilbara Minerals shares drop on major P2000 lithium expansion news

This lithium miner could be about to increase its production to 2 million tonnes a year.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

ASX small-cap stock explodes 210% on new copper find

This small cap has tripled in value in a single day. But why?

Read more »

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie
Materials Shares

Mineral Resources shares fall on big iron ore news

This mining giant is closing down its Yilgarn Hub at the end of the year.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Materials Shares

Why this ASX mining stock just got a huge broker upgrade

This mining stock could be heading even higher according to analysts at Bell Potter.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Materials Shares

Why are Sayona Mining shares outperforming other ASX lithium stocks today?

Lithium stocks are down but this one is holding firm. What's going on?

Read more »

Miner looking at a tablet.
Materials Shares

Fortescue shares drop as $1.1 billion stake hits the market

A major investor is pulling the pin on Fortescue shares, sending the share price lower.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

These beaten down ASX lithium stocks could rise 35% to 85% in 12 months

Big returns could be on offer for brave investors according to analysts.

Read more »