AKE led the lithium stocks lower on Monday after flagging a $640mn cost blowout across three major projects, one in Canada and two in South America, with higher labour and material expenses cited as the cause. Allkem’s chief executive tried to remain optimistic, stating that “the outlook for lithium, a key ingredient in EV batteries, remains strong.” However, the stock still fell -3.25% on the session, closing over -31% below its July high.
- We foresaw this sort of problem for lithium miners through 2023/4 in our Resources into FY24 webinar, we wouldn’t be surprised to see AKE testing $11 into Christmas.
MM is neutral AKE short-term
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