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Albemarle Corporation (ALB)

NYSE - NYSE Delayed Price. Currency in USD
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Visitors trend2W10W9M
265.70+6.40 (+2.47%)
At close: 04:00PM EDT
267.31 +1.61 (+0.61%)
Pre-Market: 09:22AM EDT
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  • D
    Dan
    So ALB plans to build a conversion plant in NC by 2029. Would Kings Mountain supply sufficient feedstock or is there another lithium mine in the area that could feed this plant.
  • b
    bellbell63
    Anyone think ALB might be in play. A quick way for someone to get into Li without waiting 3-5+ yrs to build out their own capability. ALB mkt cap about 30B. RIO cap about 100B , BHP about 195B.
  • b
    bigbear
    A big article on Lithium in the WSJ; some how I missed it yesterday. Not sure if it was posted yet. A snipt below..
    To expand its output, U.S.-based Albemarle Corp. signed a new contract in 2016 that requires it to pay royalties of up to 40%, an industry high. Hoping to add value domestically rather than just export raw material, the government required Albemarle to provide up to 25% of its lithium production at a low market price to companies processing it locally. The company also gives part of its sales to indigenous communities.

    “If lithium regulation in Chile was like copper regulation, I can assure you there would be a lot more mines,” said Albemarle’s country manager in Chile, Ignacio Mehech. “We have to be able to produce the lithium that the world needs.”
    The Place With the Most Lithium Is Blowing the Electric-Car Revolution
    A California-sized piece of South America is stifling production of the metal at a time when battery makers desperately need it
    Evaporation ponds at an Albemarle Corp. lithium mine in Chile. Chile—Hailed as the Saudi Arabia of lithium, this California-sized chunk of terrain accounts for some 55% of the world’s known deposits of the metal, a key component in electric-vehicle batteries.
    Link.. If you don't subscribe I don't think it will open.

    https://www.wsj.com/articles/electric-cars-batteries-lithium-triangle-latin-america-11660141017?mod=hp_lista_pos5
    A California-sized piece of South America is stifling production of lithium at a time when battery makers desperately need it.
    A California-sized piece of South America is stifling production of lithium at a time when battery makers desperately need it.
    www.wsj.com
  • b
    bigbear
    I don't want to say too much, but not a bad day!!
    Took a minute; but BBB lite! Not bad Dan!!
    Good thing it was "Lite"...
    Bullish
  • b
    bigbear
    Posted again.. did not stick with Link. I will try this, it seems very good for ALB..
    Considering it takes seven years to build a mine and refining plant but only 24 months to build a battery plant, the best part of this decade is needed to establish an entirely new industry in the United States," said Simon Moores, chief executive of Benchmark Mineral Intelligence.

    The Inflation Reduction Act (IRA) includes a $7,500 tax credit for new electric vehicles, but to win the full credit, EV makers have to source in 2023 at least two-fifths of battery materials from the United States or free trade agreement (FTA) partners such as Canada, Chile and Australia or recycle it in North America.

    On the stock summary page it is shown. hope this stays put!
  • P
    Pete
    Back up the truck or drive away? Not understanding the price action here based on earnings
  • B
    BigBob
    Question?? Recycling was mentioned on the conference call as something they are already planning for. It will be small in the beginning but I got the gist from the call that they want to set up the chain for processing probably near existing production facilities. Separate building that can be upscaled.

    The question - in those batteries are other valuable metals besides lithium. Nickel, Manganese & Cobalt.
    Since they are a chemical company and deal with all kinds of material I would think they would reclaim everything they can. Yes?????????
  • M
    Markus
    this was 2018 --> “We think Albemarle is overvalued,” JPMorgan’s Jeffrey Zekauskas said in a note to clients. The bank downgraded Albemarle to “underweight,” encouraging investors to sell, and cut its price target to $60 per share from $68
  • D
    Dan
    In the newest bill, 40% of materials have to be mined or manufacturered in the US to get a credit. Now how will that shake out the lithium business?
  • b
    bellbell63
    The one caveat I have about ALB is their major and increasing reliance on Chinar for processing. What happens if US China relations go really south? North American projects are several years away.
  • D
    Dan
    Oh well, we can always hope for lousy earnings next quarter so it goes up.😃
  • b
    bellbell63
    I would expect a significant div increase in Feb. If they are looking at $14+/share in earnings for 2022 even a (low) 15% payout ratio would be $2.10 - a 32% increase. I know we are not here primarily for income but 15% payout ratio would still be low compared to other miners. The diff between 2.10 and 1.58 (.52) would be about $60M - that would be lost in the noise compared to their other spending. Higher div might attract additional classes of investors.
  • b
    bellbell63
    IMO ALB weakness is due to the US-China-Taiwan situation. IF things get nasty their could be economic retaliation by China such as permitting delays, export controls, etc. Without China processing capability ALB has a real problem.
  • D
    Dan
    Ok next step up is for the bill to pass the house and for China to calm down and get back to business.
  • E
    Electric Mike
    Livent is down 7% today, I hope it isn't the smart money that is selling on the news to lock in profit.
    I would have expected ALB to be up more than the overall market today leading into earnings. Seemed like a nice setup with a little weak hand selling yesterday before ALB reports followed by positive market futures this morning.

    I am confident that ALB will give us good news tonight but are people determined to get ahead of everyone else selling their winners in anticipation of the economy and overall market going down??? Seems like the worst case technical outcome tonight would be if management claims they don't have enough visibility to Q4 pricing to raise full year guidance again. Obviously the catalyst division will struggle with natural gas pricing and availability in Europe too, but that should be no surprise.

    Full disclosure I bought a smidge more ALB at $240 today in anticipation of ALB telling us what they plan to do with all of the new Spodumene Concentrate production that is coming online this year.
  • b
    bellbell63
    Really big PM spread. I have PM buy order in - 100 @ 231.60 - unlikely to fill.
  • E
    Electric Mike
    Oppenheimer adjusts ALB price target today from $368 to $440 🚀
  • M
    Mike
    $LAC conversation
    Volkswagen starts US production of ID.4 in Chattanooga!

    $ALB $LAC
  • E
    Electric Mike
    Earnings presentation is out now.

    In addition to the massive earnings beat on pricing, they have also now added about 20kTPa of tolling to the volume projections going forward. Looks like Kemerton remains on a slow ramp as the organic Lithium Hydroxide production isn't going up significantly until next year.

    Outlook of $19.25-$20.25 adjusted earnings per share for 2022 is a massive raise. Of course now that we are going to be cash flow positive people can start carping about our GAP PE 😉

    https://investors.albemarle.com/static-files/9324ac04-fbd0-40df-9279-80c959e55302
  • D
    Dan
    So here we sit in the usual pre-earnings wobble.😁
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