AKE - Allkem Limited

[Trav.]

Revisiting ORE again as it has been flagged in a weekly system in early August and it has been a losing trade (paper -11.5%) but I have noticed the tide turning in the last week or so after finding some support @ 2.60, we will have to wait and see how things turnout for ORE

Weekly bars in snip

ORE removed from ASX200 this quarter
SPP active @ $2.52 for eligible shareholders
Lithium Carbonate price holding up well.

Lithium prices | London Metal Exchange

Lithium prices

www.lme.com

 

[Trav.]

Hindsight is a wonderful thing.

I was checking up on a few stocks and notice ORE had a lovely run and of course I was not in the trade..nice break through $3 and holding up well.

 

[Gunnerguy]

Bought some today. Maybe a bit late but a speculative buy on Lithium and the recent announced merger with GXY. Plan to be a long term ‘Growth’ hold
Gunnerguy

 

[TechnoCap]

not too late IMO - check on GLN if you like Lithium as a spec (I hold both)

Bought some today. Maybe a bit late but a speculative buy on Lithium and the recent announced merger with GXY. Plan to be a long term ‘Growth’ hold
Gunnerguy

 

[dyna]

Bought some today. Maybe a bit late but a speculative buy on Lithium and the recent announced merger with GXY. Plan to be a long term ‘Growth’ hold
Gunnerguy

Although both Galaxy and Orocobre( "gold-copper",in spanish) both lost money in fiscal 2020, and had to raise equity, the Lithium roller coaster is well and truly rocketing once again.It wasn't that long ago,2012 I think, no Aussie bank would lend them any money.Then a Japanese one, gave them a couple of hundred mill.
Hardly a speccie these days with the almost $200 Billion AustralianSuper,one of its biggest shareholders,with 7% of equity,this company is headed for the stars.Especially with a long term shortage of Lithium predicted.

 

[Dona Ferentes]

FY Results out and merger with Galaxy GXY complete.


• FY21 full year Net Loss After Tax of US$89.5 million impacted by US$74.9 million of Argentine tax rate changes and the effects of inflation and devaluation on deferred tax balances and tax losses
• Lithium prices are improving reflecting strong end market and customer demand
• Management of COVID 19 impacts has been highly effective
• Olaroz Stage 2 will be complete in FY22 and will deliver a significant reduction in cash costs and step up in volumes
• Naraha is near completion and awaiting lifting of COVID 19 travel restrictions for technical personnel to start commissioning

• Merger with Galaxy to deliver:
... A top 5 global lithium chemicals company
... Highly complementary portfolio of assets
... Industry leading growth profile
... Synergies unique to this combination
... Highly experienced board & management team
... Enhanced scale and financial capacity

 

[bux2000]

Last Month I was a bottom feeder with GGE, well actually I was at the bottom so this month I will go back to EV's and stuff to make their batteries.......With a chart showing a little promise I hope I can keep off the bottom.
I see Nissan Has announced today it is going to spend $17.6 Billion to speed up its manufacture of EV's

Nissan to spend $17.6B in developing a new electric vehicle platform

Nissan is taking on Tesla for the top spot in the electric vehicle market. The Japanese automaker announced a five-year spending plan of $17.59 billion to accelerate its vehicle electrification.

www.dailymail.co.uk

I have a small holding in ORE after the merger with GXY

bux

 

[System]

On December 6th, 2021, Orocobre Limited (ORE) changed its name and ASX code to Allkem Limited (AKE).

 

[Dona Ferentes]

New name doesn't do it for me.

I guess the cobre association needed to go, but this is clunky

 

[Sean K]

Have we missed the boat on this one, or is it a long term play and the recent correction an opportunity?

 

[Sean K]

Had a nice run here but is the MC running away? $8b??

 

[Sean K]

Maybe $8b MC for this is just the start. Looks like a lot of growth to come.

 

[Sean K]

Skimming profits here. Looks like time for another retracement, maybe. I'm just not sure if lithium keeps running or there's a significant pullback. Looks like it's just holding up at the moment, but it's been such an incredible run. Maybe this is a long term secular bull with some corrections on the way while the supply/demand imbalances sort themselves out.

 

[Sean K]

Lithium didn't move overnight and the general market is even... Maybe AKE just doesn't like $14...

 

[Dona Ferentes]

James Marlay: Welcome to buy Buy Hold Sell, brought to you by Livewire Markets. My name's James Marlay. And today we're talking about stocks for the energy transition. I think it's becoming widely accepted that we are taking away to a new energy world. How we get there, when we get there, far less certain. So to help us navigate the way that we get to the energy transition, or get through the energy transition, we've got Luke Smith from Ausbil and Tom Richardson from Paradice. Let's talk about a few energy transitions stocks. Luke, I'll start with you. Lithium. Couldn't be hotter. Well, it was hotter. Allkem, one of the bigger producers in the Australian market. Buy, hold or a sell?

Allkem (ASX: AKE)​

Luke Smith (BUY): Yeah, it's a buy. Lithium, we strongly disagree with the negative view around lithium. We've seen pricing strength, and demand backdrop is extremely strong and strengthening. Allkem, three growth assets, puts it on par with the majors. It's a buy from us.

James Marlay: Okay. Tom electric vehicles, batteries, everyone's into it. Allkem. Buy, hold or a sell?

Tom Richardson (BUY): It's a buy, absolutely. I wouldn't say it's hot. I would even say that the sector's been very cold. In fact, it's the new sector that people love to hate. But it's absolutely a buy. China is still the biggest buyer in the market, and it looks as though their battery production actually is inflecting up. And so it's not what people expect. And there's a lot of short interest in all these names. They might get caught by the demand strength in China. And maybe prices even go higher, not lower like people are expecting. So it's a buy.

 

[Dona Ferentes]

Quarterly out. This caught my eye.

Argentina economic conditions
The official foreign exchange rate depreciated by 12.8% in the June quarter from AR$111.01 at 31 March 2022, to AR$125.23 at 30 June 2022 while inflation was ~17.3%.

The accumulated devaluation of the AR$ against the US$ for the 12-month period from 1 July 2021 to 30 June 2022 was ~31% while inflation was ~64%.

....so, the AR$ is a bit of a pain for AKE?

 

[Sean K]

Quarterly out. This caught my eye.

Argentina economic conditions
The official foreign exchange rate depreciated by 12.8% in the June quarter from AR$111.01 at 31 March 2022, to AR$125.23 at 30 June 2022 while inflation was ~17.3%.

The accumulated devaluation of the AR$ against the US$ for the 12-month period from 1 July 2021 to 30 June 2022 was ~31% while inflation was ~64%.

....so, the AR$ is a bit of a pain for AKE?

Not sure, they seem to be reporting everything in USD, not sure of the significance of AR$?

The cash generation caught my eye. They're developing quite a pot. What are they going to do with all those $$?

 

[Dona Ferentes]

costs. When inflation is higher than the devaluation, things get expensive when in the build phase.

 

[Sean K]

The cash generation caught my eye. They're developing quite a pot. What are they going to do with all those $$?

The Capex for their development projects doesn't seem too hefty. Maybe they'll buy another project somewhere..

 

[Sean K]

AKE has a problem with $14 ish, so I wouldn't be surprised if it's approaching a short term top. Not sure what will get it through. Maybe a RIO takeover offer rumour.