Allkem shares drop after project cost blowout
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The news: Shares of lithium miner Allkem lost 3% by 3pm AEST on Monday after the company revealed cost blowouts at three major projects.
The numbers: Allkem said inflation, labour and materials expenses had pushed out costs by a total of USD413 million ($642.6 million) at its Canadian James Bay project (+USD104 million), and Argentinian projects Cauchari (+USD213 million) and Sal de Vida (+USD97 million).
The context: Allkem is set to merge with processing company Livent to create a NYSE-listed lithium giant later this year. Lithium prices have been on a macro downtrend for most of the year, currently buying roughly USD28.17 per kilogram, down from more than USD85 in December 2022.
The sources: ASX Announcement, AFR
