Currency in AUD
Last close As at 09/06/2023
▲ −0.04 (−0.26%)
Created as part of a merger between Orocobre and Galaxy Resources in 2021, Allkem is a speciality lithium chemicals company headquartered in Argentina.
|52 week high/low||A$16.3/A$9.5|
Allkem is uniquely positioned to be one of the main beneficiaries of the favourable lithium market conditions as it boasts a healthy pipeline of advanced development projects, aiming to triple its production capacity and to expand into the higher value battery-grade products. Despite near-term economic weakness, lithium demand continues to be driven by the secular trend towards decarbonisation and growing global electric vehicle (EV) adoption. Supported by supply shortages, cost inflation and project delays, lithium prices should remain at elevated levels to incentivise new supply. Despite adding c 45% year to date, Allkem shares trade at a FY23e consensus EV/EBITDA multiple of only 5.6x versus the downstream peers’ average of 9.6x.
Get access to the very latest content matched to your personal investment style.