'Amongst the best in the world': Why the Allkem share price is charging higher today

Allkem may be sitting atop another world class asset.

| More on:
A man holding a cup of coffee puts his thumb up and smiles while at laptop.

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

The Allkem Ltd (ASX: AKE) share price looks set to end the week on a positive note.

In morning trade, the lithium miner's shares are up 3% to $14.96.

Why is the Allkem share price rising?

Investors have been buying the company's shares today after it announced a mineral resource upgrade to its James Bay Lithium Project in Canada.

According to the release, the updated mineral resource is now 110.2 Mt at 1.30% Li2O. This includes 54.3 Mt at 1.30% Li2O in the Indicated category and an additional 55.9 Mt at 1.29% Li2O in the Inferred category.

Management believes this solidifies the status of the James Bay Lithium Deposit in Québec as a tier-1 lithium pegmatite mineral resource and long-life asset.

The good news is that it may not stop there. The company notes that the maiden inferred mineral resource in the NW Sector remains open along strike and at depth with excellent growth potential.

Allkem revealed that a significant campaign of infill and extensional drilling is planned during the Canadian winter. This will test for along-strike and down-dip extensions of the pegmatite dykes beyond the area included in this mineral resource estimate.

'Amongst the best in the world'

Allkem's managing director and CEO, Martin Perez de Solay, was pleased with the news. He believes the company has one of the best assets in the world in its portfolio. The CEO said:

James Bay is now one of the largest spodumene lithium assets and clearly has the potential to grow even further as the boundaries of mineralisation are tested through an additional drilling program commencing later in the year.

The size and grade of this resource is amongst the best in the world and will underpin Allkem plans for future production and processing of lithium in Québec.

The Allkem share price is now up 20% over the last 12 months.

Motley Fool contributor James Mickleboro has positions in Allkem. 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 man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Liontown shares are down 17% in a month: What's going on?

This lithium share has failed to roar in recent weeks.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Own Rio Tinto shares? Add these dates to your diary in 2024

Here's what Rio Tinto has planned for next year.

Read more »

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.
Materials Shares

Why did the Core Lithium share price just hit a 2-year low?

Top broker Goldman Sachs says falling lithium commodity prices may hit Core Lithium particularly hard.

Read more »

A cute little boy, short in height, wearing glasses, old-fashioned bow tie and cardigan stands against a wall near a tape measure with his hand at the top of his head as though to measure his height.
Broker Notes

Are ASX short sellers right about Pilbara Minerals shares?

Let's see what some of the big brokers think.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

What are brokers saying about the BHP share price?

This mining giant's shares are having a strong month. Can the run continue?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Which ASX lithium stock has soared 246% in just a month?

IPO investors are rubbing their hands in delight.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

What is the outlook for ASX lithium shares in 2024?

How are things looking for these miners?

Read more »

a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.
Materials Shares

What will the lithium price be in 2024?

Will lithium prices continue to fall next year?

Read more »