Press Releases

FY23 Half Year Results

BRISBANE, Australia, Feb. 23, 2023 (GLOBE NEWSWIRE) — Allkem Limited (ASX|TSX: AKE, “Allkem” or the “Company”) provides financial results for the Allkem Group (the Group) for the half year ended 31 December 2022.


  • Group revenue for the period increased almost 3x to US$558 million on the previous corresponding period (“PCP”)
  • The Olaroz Lithium Facility1 achieved record production of 7,542 tonnes, 13% higher than the prior record in 2019
  • Record revenue from Olaroz increased ~4.5x to US$296 million on sales of 6,852 tonnes of lithium carbonate with an additional US$5 million of revenue generated from by-product sales. Average pricing increased almost 4x from the PCP to US$43,236/t FOB2. The gross profit margin was ~90%
  • Spodumene revenue increased by 65% from the PCP to US$190m from sales of 36,951 dry metrics tonnes (dmt) of spodumene concentrate at an average price of US$5,136/tonne CIF2. Gross cash margin of 76%
  • Additional revenue of ~US$72 million generated from sales of low-grade product from both Mt Cattlin and Olaroz reflecting very strong market conditions and demand from customers
  • Excellent operating performance and highly supportive market conditions generated group gross profit of US$462 million with group EBITDAIX of US$401 million and consolidated net profit after tax of US$219 million reflecting improved product prices, focussed operational management and comprehensive cost control mitigating inflationary pressures
  • Strong cash generation and existing net cash balance of US$552m is expected to fully fund committed projects
  • Q3 FY23 lithium carbonate prices are expected to be approximately ~US$53,000/t FOB, excluding Naraha feedstock which is an intermediate input for the production of battery grade lithium hydroxide
  • Customer demand in the spodumene market remains robust, driven by strong lithium hydroxide requirements, and pricing in the March quarter is expected to be 5% above the December quarter.


  • New development and expansions are expected to see the business expand three-fold as the lithium industry continues to grow with the increasing adoption of electric vehicles.
  • By the end of January Olaroz Stage 2 reached 97% completion, pre-commissioning and commissioning activities are underway, with full commissioning activities expected to commence later in Q1 CY23. First production is planned for Q2 CY23
  • Naraha successfully achieved first production of lithium hydroxide and product quality exceeded expectations. Approximately 200 tonnes of lithium hydroxide produced during the quarter has been sold to third party customers. At the date of this report the plant was operating consistently at 85% utilisation producing on-spec battery grade lithium hydroxide
  • The first two strings of ponds at Sal de Vida Stage 1 are currently at ~87% completion and the EPC contract for the process plant has been awarded. First production currently estimated in mid-2024
  • James Bay obtained approval by the Joint Assessment Committee (Federal government) of the ESIA. Comex approval (Quebec government and CREE Nation) of the ESIA, agreement of the IBA and procedural construction permitting remain in progress. Once permits are secured, construction will commence and the Company will update guidance for first production

1 All figures 100% Olaroz Project Basis.
2 “FOB” (Free On Board) excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing. Therefore, the Company’s FOB reported prices are net of freight (shipping), insurance and sales commission.

Allkem Managing Director and CEO, Martin Perez de Solay says:

“Our FY23 half year results continue to demonstrate the improving profitability of our existing operations and the strong demand we receive from customers.”

“Amidst strong demand for lithium products we have delivered first production at the Naraha Lithium Hydroxide Plant and advanced Olaroz Stage 2 to commissioning. Sal de Vida construction is well underway, and James Bay is advancing with approvals received by the federal government for the ESIA.”

“With two revenue generating operations being supplemented in the near future by Olaroz Stage 2 and a strong balance sheet, we are fully funded to complete construction at Sal de Vida and the development of James Bay.”

“We recently advised the sad news that Neil Kaplan passed away. Neil was an outstanding CFO and highly respected colleague who dedicated more than 10 years of service to the business. We will miss him greatly and offer our deepest condolences to his wife and family.”

“Christian Cortes has accepted the role of Acting CFO and will ensure a seamless transition of the Company’s finance functions whilst the Board conducts a formal search for a permanent CFO.”

“Allkem remains focussed on continuing successes of our business, optimising operations and delivering its tier 1 development assets while also advancing the next wave of growth.”


The Group produced a Group EBITDAIX of US$401.5 million and consolidated net profit after tax of US$219.2 million (31 December 2021: US$13.0 million). Revenues increased by US$377.3 million to post a record six-month revenue of US$557.9 million as a result of strong pricing. The net profit after tax includes gains of US$27.9 million from financial instruments, and foreign exchange losses of US$26.5 million, net finance income of US$11.8 million and income tax expense of US$155.9 million.

Net assets of the Group increased to US$3,248.7 million as at 31 December 2022 (30 June 2022: US$3,081.4 million) including cash balances of US$770.3 million (30 June 2022: US$663.6 million). The increase in cash is due to the profitable operations partially offset by capital expenditure.

Group capital expenditure (including exploration) for the half-year totalled US$194.6 million (31 December 2021: US$99.6 million) and the Mizuho project loans were reduced by ~US$18.3 million.


Group Olaroz Mt Cattlin
  (4 months)
  31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21
Revenue 557,875   180,527   300,817   65,620   257,058   114,907  
EBITDAIX 1 401,459   97,780   246,605   35,299   202,894   71,027  
Less depreciation & amortisation (32,192)   (18,488)   (9,027)   (8,611)   (22,215)   (9,065)  
EBITIX 2 369,267   79,292   237,578   26,688   180,679   61,962  
Less interest income/(costs) 11,796   (10,176)   (3,664)   (12,610)   6,934   (237)  
EBTIX 3 381,063   69,116   233,914   14,078   187,613   61,725  
Add other income – gains from financial instruments 27,896   12,396          
Less foreign currency gains/(losses) (26,455)   (420)   (24,479)   (1,323)   83   (178)  
Less share of loss of associates, net of tax (4,051)   (869)          
Less acquisition costs   (12,760)          
Less amortisation of customer contracts due to purchase price allocation   (13,400)         (13,400)  
Less inventory adjustment due to purchase price allocation   (12,367)         (12,367)  
Segment profit for the period before tax 378,453   41,696   209,435   12,755   187,696   35,780  
Income tax expense (155,940)   (29,134)   (93,817)   (23,843)   (56,653)   (10,734)  
Total profit/(loss) for the period – continuing operations 222,513   12,562   115,618   (11,088)   131,043   25,046  
Discontinued operations (3,278)   396          
Total profit for the period 219,235   12,958          
1. EBITDAIX – Segment earnings before interest, taxes, depreciation, amortisation, impairment, gains from financial instruments, foreign currency (losses)/gains, share of associate losses, business combination costs and other adjustments due to purchase price allocation.  
2. EBITIX – Segment earnings before interest, taxes, impairment, gains from financial instruments, foreign currency (losses)/gains, share of associate losses, business combination costs and other adjustments due to purchase price allocation.  
3. EBTIX – Segment earnings before taxes, impairment, gains from financial instruments, foreign currency (losses)/gains, share of associate losses, business combination costs and other adjustments due to purchase price allocation.  

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.

  Allkem Limited

ABN 31 112 589 910

Level 35, 71 Eagle St
Brisbane, QLD 4000

Investor Relations & Media Enquiries

Andrew Barber
M: +61 418 783 701 E:

Phoebe Lee
P: +61 7 3064 3600 E:

+61 7 3064 3600



This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at and with the Australian Securities Exchange (ASX) announcements, which are available at

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Forward Looking Statements

Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

Not for release or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.

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