Hovering lithium costs supported earnings from Chile’s SQM (NYSE:SQM) in the course of the first quarter, with the miner seeing its internet earnings attain US$796.1 million ― up from US$68 million a yr earlier.
The highest lithium producer’s income from lithium gross sales elevated virtually 970 % year-on-year to hit US$1.44 billion, with its gross sales quantity rising 59 % and reaching its highest degree at 38,100 tonnes.
“The lithium market continues to be very dynamic and at instances tough to gauge and estimate,” the corporate stated in a Wednesday (Could 18) assertion. “Regardless of the upper pricing setting now we have seen, we nonetheless consider that the lithium market will develop at the very least 30 % this yr.”
SQM is forecasting that its gross sales quantity in 2022 will exceed 140,000 tonnes, with solely 20 % of gross sales anticipated to be in fastened contract costs or at variable costs with particular flooring and ceilings.
“In mild of market demand expectations, we’re rising our capability and our development plans stay on course with earlier bulletins,” the corporate stated.
Final March, the key lithium miner stated that within the coming months it was anticipating its lithium carbonate manufacturing capability to succeed in 180,000 tonnes, and its lithium hydroxide capability to hit 30,000 tonnes. It additionally outlined plans for a US$250 million capability enlargement plan in Chile that might permit it to succeed in 210,000 tonnes of lithium carbonate and 40,000 tonnes of lithium hydroxide subsequent yr.
SQM’s main lithium enterprise is within the Salar de Atacama in Chile, the place its lithium brine operations are situated. SQM can be creating the Australia-based Mount Holland lithium venture, which is named one of many world’s largest hard-rock mining deposits, in a three way partnership with Wesfarmers (ASX:WES,OTC Pink:WFAFF).
Earlier this month, SQM’s rival Albemarle (NYSE:ALB) revealed its quarterly outcomes, with shares climbing after the miner raised its 2022 outlook on the again of upper lithium costs.
The spike in costs additionally helped US-based Livent (NYSE:LTHM) in the course of the first quarter, with the producer posting a 56 % enhance in year-on-year income, beating expectations and elevating its full-year steering.
Most lithium firms have seen momentum enhance prior to now yr, with some lithium shares within the US, Canada and Australia seeing year-to-date positive factors.
On Thursday (Could 19), shares of SQM have been buying and selling at US$94.50, up greater than 5 % from the corporate’s closing worth the earlier buying and selling day.
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Securities Disclosure: I, Priscila Barrera, at the moment maintain no direct funding curiosity in any firm talked about on this article.
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