Allkem shares move up post the release of its March 2022 quarterly report

Allkem Limited (ASX: AKE) has released its March 2022 quarterly report and updated its global lithium portfolio, business activities, and financial position at 31 March 2022.  

• The company has highlighted that it plans to increase its lithium production 3 times by 2026 and maintain a 10% share of the global lithium market over the next decade.
• AKE would commence a further 33000 metre resource and exploration drilling program at Mt cattlin in April and will test immediate mine-life extension opportunities.
• In March 2022 quarter, AKE produced 48,562 dry metric tonnes of spodumene concentrate and shipped 66,011 tonnes.
• The Olaroz Lithium Facility produced 2,972 tonnes of lithium carbonate with sales of 3,157 tonnes. Thus, generating a record revenue of ~US$86 million.
• Olaroz Stage 2 reached 77% construction finishing point. The first production would commence in H2 CY2022.
• In June 2022 quarter, AKE updated that plant commissioning works will occur at Naraha.
• Group revenue for the quarter was ~US$235 million, and group gross operating cash margin was ~US$189 million. Thus, reflecting robust market demand and high sales prices.
• The group had US$421.3 million cash by the end of the quarter, and another AU$73.4 million of cash was collected in early April from an Mt Cattlin shipment that occurred in March.

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