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Sociedad Química y Minera de Chile S.A. (SQM)
NYSE - Nasdaq Real Time Price. Currency in USD
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A Chilean court on Friday ordered the suspension of a lithium contracts auction that took place earlier this week, part of a plan by the South American country to boost production of the coveted mineral used in car batteries.
An appeals court ordered the suspension, which was requested by the regional governor of the Atacama region and local indigenous communities.
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Much of Chile’s lithium is located in brines under the arid Atacama desert that stretches along Chile’s coast.
Chile on Wednesday awarded lithium quotas of about 80,000 tonnes of lithium to two companies: Chinese automaker ByD Co Ltd and the local firm Servicios y Operaciones Mineras del Norte for a combined total of over $120 million.
The court ordered the suspension of the lithium auction while the claims, which were not detailed in the court decisions, are resolved by the judiciary. Fellow SQM holders, should we consider this good news for SQM?
congrats SQM stock holders - who did not flinch when this dipped below $50 after Chile election results. In fact I added a bit more then. I see $57.25 print AH. Lithium will be in great demand for next 20 years. Even the worst run Lithium company likely to have above market gains. I have LTHM, LIACF, BHP too. Sold RIO on spike for profit - but looking to re-enter.
Hello, North American lithium traders. You are trading Allkem in the U.S. (OROCF) and Canada (AKE.TO) today at a 2.5% to 3% discount for no good reason. The main shares in Australia (AKE.AX) traded up 2.2% overnight on nice volume (4.2 million+ shares) based on soaring lithium prices and Allkem's just released bullish Quarterly Activities Report. Do you in North America, with your sub 100k volumes in each market, think you know something the 4.2 million shares traded in Australia don't know?? Stop selling at a 3% discount to what the shares are actually worth. With the present exchange rate, the shares are worth no less than $8.35 USD/share.
$OROCF $SQM $LTHM $ALB $LAC $PLL $SLI $LIT
Looking to get more lithium exposure in your portfolio but hesitant to buy more right here on today's big 5% to 10% (+) bounce in the space? Well Allkem (U.S. ticker: OROCF; Australian ticker: AKE.AX; Canadian ticker: AKE.TO) is trading at a big discount today relative to this bounce in the space. That is because the Australian market (the primary stock market for the trading of this stock) is closed right now and doesn't open until tonight New York time.
Allkem (formerly Orocobre which recently merged with Galaxy Resources) is one of the very best quality plays in the entire lithium space. Unlike lithium juniors still in the exploration and development stage, Allkem is a major, established player on the global stage with huge revenues and huge revenue growth. With huge ongoing production (not to mention its own big development pipeline), Allkem has been capitalizing hugely on soaring lithium prices (most recent lithium carbonate spot quote: 298,500 yuan / metric tonne). Why wait for production years out when you can have it right now in a major, quality global player? Also, Allkem, unlike ALB and SQM, does not have any Chileean exposure (think Boric, newly elected socialist president looking to massively raise taxes on miners and nationalize most if not all new lithium development in the country).
Right now you can still get Allkem (OROCF in the U.S. or AKE.TO in Canada), one of the very best lithium players in the world, at a big discount to today's bounce in the space. Surely the shares will be higher tomorrow after the Australian market catches up with today's big bounce in the space during Australian trading tonight.
Good luck and good investing to all no matter what your lithium stocks happen to be.
$OROCF $ALB $SQM $LAC $ LTHM $PLL $SLI $LIT
This is a 70 dollar stock that is getting beaten down for obvious reasons despite the fact that Boric is already pivoting to the center. Many years ago SQM was an ATM for Pinchet's son-in-law and the company limped through that ugly chapter. I predict this thing will bounce back in a year and be trading at 65-70 USD per share modulo currency fluctuations. I don't like all the special dividends they shed but I suppose this helps them modulate cash flow; end of 2022 this stock is at 65 for higher.
Well here we go folks. The games for the new year are about to begin. Even though there are virus outbreaks around the country with this new variant I remain positive. People are learning vaccinations keep people from dying.
Another all-time high set overnight in Shanghai in spot lithium carbonate. (Closed up another 4000 yuan to 272,500 yuan / metric tonne.)
$OROCF $LTHM $LAC $SQM $ALB $PLL
Chile’s newly elected Gabriel Boric pushes for e more green Chile. This through water and hydrogen investments. But as many know lithium is a very climate compromising industry and he is proposing a state owned company for hydrogen, water and mining.
Considering the great demand for lithium, do you think he will hurt $SQM business. Given that many countries will dislike this as it would hurt supply even more. Boric says Chile will be fully carbon neutral by 2040 through emission taxes. This could meen greater costs for $SQM. What are your thoughts on his election and politics?
$sqm $alb $lac
In my effort to decipher why all U.S.-listed lithium tickers have been going down so much lately (much more than the general market) even though the global lithium business is utterly booming and lithium carbonate spot price has been making fresh all-time highs every day, I believe I have found a key, disturbing reason why. Looking at the charts, I see there is a very close correlation between TSLA stock and the stocks of U.S.-listed lithium producers. Perhaps many may already know of this correlation, and perhaps others see it as an obvious and deserved correlation. But I think it is an unfortunate and totally undeserved correlation likely having to do with these stocks being all lumped together in the same clean energy, battery, and ESG ETFs. Sure, the correlation, whether deserved or not, works great for us when $TSLA is soaring, but when its founder is selling off some of his TSLA shares every day for idiosyncratic reasons having nothing to do with the underlying business and TSLA tanks as a result and we get slammed down right along with it even though the lithium business is utterly booming and lithium spot prices are soaring, the correlation no longer makes any sense, even if it ever did in the first place. The one and only thing that should make a difference for lithium producers is that auto manufacturers all over the globe desperately need more and more of the stuff every day as they make the inexorable transition from ICE to EV -- a transition that is still in its utter infancy. Heck, TSLA stock could hypothetically (I don't think it likely will) get cut in half next year because of intense competition from traditional auto manufacturers ramping up their EV game and yet that shouldn't make one iota of a difference for lithium producers. Whether the customer is Tesla, Ford, GM, VW, Stellantis, Toyota, Daimler, BMW, Porsche, Volvo, Xpeng, Nio, Li, Polestar, $LCID , $RIVN or any of a growing number of others, it shouldn't make a bit of difference. The auto manufacturers will be clamoring for lithium no matter who they are. Such intense competition may not be good for Tesla, but it will always be great for lithium producers.
A note to these inefficient markets: Let us be set free from the unfortunate and undeserved correlation with TSLA so we can soar to new heights.
$ALB $SQM $LTHM $OROCF $LAC $LIT
With zero exposure to Chile and its far left president-elect Boric, Livent (ticker: LTHM) has suddenly emerged as one of the most solid lithium plays out there. Lithium prices are soaring day after day -- lithium carbonate spot price rose to yet another record overnight in China to 242,500 yuan / metric tonne. Will the market finally get smart and prove wrong the analyst who downgraded Livent stock last week? The future for Livent, the company, is getting brighter and brighter each and every day. It is just a matter of time before its stock resumes its upward trend.
Disclosure: I hold LTHM and OROCF. As I stated on Friday morning towards the end of my previous thread, I exited ALB and SQM last week because of the upcoming political uncertainty. If the time comes when there is more clarity regarding the new government's plans and they are not too negative, I would be interested in re-entering. Neither LTHM nor OROCF has exposure to Chile. The future is very, very bright for lithium producers.
$ALB $LAC $PLL $SQM $OROCF
Promising developments outlined in article just out overnight for the James Bay, Quebec assets of established Australian lithium producer, Allkem (ticker: OROCF):
"James Bay Lithium Project Feasibility Study & Maiden Ore Reserve
Mon, December 20, 2021, 10:47 PM·31 min read
BRISBANE, Australia, Dec. 21, 2021 (GLOBE NEWSWIRE) -- Allkem Limited (ASX |TSX: AKE) (“Allkem” or the “Company”) advises the release of the Feasibility Study and Maiden Ore Reserve for its wholly owned James Bay Lithium Project (“James Bay” or the “Project”) located in Québec, Canada.
Feasibility Study confirms a sustainable, high value hard rock lithium operation utilising renewable hydropower
Material ~2.5x increase in Net Present Value (“NPV”) from the Preliminary Economic Assessment (“PEA”) released in March 2021
Construction planned to commence in Q3 CY2022 with commissioning in the first quarter of CY24, subject to receipt of necessary environmental and other approvals
Strategically located in proximity to high-growth electric vehicle markets in North America and Europe
Mineral Resource of 40.3Mt at 1.4% Li2O and Maiden Ore Reserve of 37.2Mt at 1.3% Li2O provides a long life, low cost spodumene operation
Average annual production of 321ktpa of spodumene concentrate with a 19 year mine life
Shallow, near-surface mineralisation ideal for open cut mining with a low life-of-mine (“LOM”) strip ratio of 3.5: 1
2mtpa process plant designed to produce up to 6% Li2O spodumene concentrate
Very similar process design and flowsheet to that already successfully employed at Mt Cattlin
Low-cost, sustainable source of hydropower to provide approximately 45% of site power needs
Strong relationships with the Cree Nation of Eastmain, Cree Nation Government and all stakeholders
Capital cost estimate of USD285.8 million on the optimised mine plan, flowsheet and schedule
Cash operating costs (FOB Montreal) of USD333 per tonne of 5.6% Li2O concentrate
Pre-tax NPV of USD1.42 billion at an 8% discount rate and post-tax NPV of USD823 million
Pre-tax Internal Rate of Return (“IRR”) of 45.8% and pre-tax payback period of 2.4 years
Post-tax Internal Rate of Return (“IRR”) of 35.2% and post-tax payback period of 2.9 years
Basic engineering has commenced alongside the procurement process for key equipment, temporary installations, contracts and preparation of construction permits
Completion of the feasibility study and report prepared in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects(“NI 43-101”) allows the Impact and Benefit Agreement (“IBA”) negotiations and Environmental and Social Impact Assessment (“ESIA”) approvals to be continued and completed
Further carbon studies and initiatives underway to align the project to Allkem’s target of transitioning to net-zero emissions by 2035
Downstream studies continue, examining options for value adding from the conversion of James Bay’s spodumene concentrate
Managing Director and Chief Executive Officer, Martin Perez de Solay commented
“The Feasibility Study results clearly demonstrate the exceptional value that will be generated for all stakeholders through the development of this project. It will utilise clean hydro-power to provide lithium into the EV and other low carbon industries. Supply chain and logistics emissions can be minimised by supplying into the rapidly expanding markets in North America and Europe.” "
To read more, see article posted on OROCF's Yahoo Finance page..
$SQM $ALB $LAC $LTHM $PLL
Latest tweet by Mr. Daniel Earle:
“Chile mining sector's worst fear realized:
Far-left socialist / communist coalition has prevailed in presidential election
Exorbitant tax increases
$SQM in grave peril re #lithium
$ANTO most exposed #copper”
Lithium carbonate spot price is up by another 3% today (Monday) in Chinese trading to 222,500 yuan (35,000 USD)/ metric tonne. This is another all-time high. Large Chinese player Ganfeng Lithium is also up by 3% so far in Hong Kong trading and my new favourite lithium stock, Allkem Limited (AKE.AX), is up by 3.6% so far in Australian trading today. Allkem is the new name for Orocobre which just completed its merger with Galaxy Resources. Great lithium play with great lithium assets and tremendous growth ahead. OROCF has been the U.S. symbol for this stock up until this point but I believe a brand new symbol is in the works for U.S. investors perhaps on Monday or very soon thereafter.
There just isn't enough lithium to go around, folks. Maybe there will be one day, but that day is far, far off in the future. Who knows when it will ever arrive since auto manufactures are only just starting on their inexorable path from ICE to EV.
Looking for all lithium stocks to start really picking up speed once again as we head towards the holidays and into the new year. Good luck, good fortune, and happy holidays to all lithium investors out there.
(Disclosure: I hold OROCF, SQM, LTHM, and ALB. I have held LAC several times as well over the past year, but not at this moment.)
$SQM $OROCF $LTHM $ALB $LAC $PLL $LIT
Any body knows what percentage global lithium is supplied by Russia. Will there be any sanctions if Rusdia go to war.
The valuation gap between the current market cap and the copper resource is very attractive, making it very tempting (at least to me) to initiate a position. However, Chile has become too big of a factor at the moment as the Argentina project has not yet been explored.
For existing producers in Chile, at least they have a contract on-hand that will maintain the tax structure for certain period of time. However, for exploration project, they will need to adopt whatever new tax structure in the future, which can be deep into the revenue, making it much less attractive for major miners to develop the mine.
For example, recent tweets from Mr. Daniel Earle (CEO of Solaris) that discuss SQM (one of the major lithium miners in Chile) on Dec 20 stated:
"...From what I have read this morning, market commentators still haven't figured out the larger implications for $SQM. Will be a long road."
In addition, the protection of glacier by Chile government can be another hurdle for the mine to be developed. Recent article also suggested BHP stated the anticipated tax reform in Chile will likely discourage future investment.
Thus, I will be a little bit conservative on the Chile factor at the moment. Of course it may mean that I miss an opportunity to play the valuation gap in NGEX if the effect turns out to be smaller. (Honestly, I am still very tempted to initiate at the moment but I am just trying to be very disciplined....lol)
NOTE: Based on the history of Lundin's companies, I speculate that NGEX may even have a chance to spin-out the Argentina assets too.
$SQM continues to go against the lithium industry. While others like $ALB & $LAC are down SQM pushes up. Maybe profits will be taken on earnings day or it will boom further. Either way I see a small dip soon. Perhaps $52
THIS ELECTION IS NEWS WHY WERE SHAREHOLDERS NOT INFORMED/ anyone know what to expect now still great company w good income coming.
Earning in the coming quarters are going to be huge with prices of all the committees that they sell up huge. Buy now when it is cheap.
Inefficient U.S. stock market pushing money-losing high flying EV stocks RIVN LCID and even pie-in-the-sky SPACs way up while pushing great fundamental, established lithium producers way down today. LITHIUM CARBONATE SPOT SURGED ANOTHER 3% OVERNIGHT TO ANOTHER ALL-TIME HIGH OF 222,500 YUAN/TONNE (35,000 USD/METRIC TON)!! Stocks of established lithium companies in China and Australia traded properly higher on this news in overnight trading.
Can the inefficiency in the U.S. market last for long?? Buy stock in quality lithium companies while you can, folks! The world just can't get enough of this stuff!
$SQM $ALB $LTHM $OROCF $LAC $RIVN $LCID
Does any one know when the X date is on this special divy, thanks
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