|Get all the essential market news and expert opinions in one place with our daily newsletter. Get a comprehensive recap of the day’s top stories delivered straight to your inbox. Sign up here!|
(Kitco News) – Chilean lithium giant Sociedad Química y Minera de Chile (NYSE: SQM) yesterday reported net income of US$1,809.5 million in 9M 2023 ($6.33 per share), up from US$2,755.3 million in 9M 2022 ($9.65). About 34.3% less. per share).
The company also reported net income of $479.4 million ($1.68 per share) for the third quarter of 2023, down approximately 56.4% compared to $1,099.9 million ($3.85 per share) for the third quarter of 2022.
SQM said its third quarter 2023 results were impacted by “significantly lower” average selling prices in the lithium and fertilizer business lines, partially offset by higher sales volumes and higher iodine selling prices compared to the same period last year. Were.
The company noted that the average selling price in its lithium business decreased by approximately 47% year-over-year, adding that sales volume is expected to reach a historic high of more than 43,300 metric tons of lithium and derivatives in the third quarter of 2023. Which is about 4% more. When compared with the same period last year.
“Excess lithium supply coupled with accumulated inventory overhangs in battery and lithium chemical supply chains, particularly in Asia, has put downward pressure on lithium market prices and may have a negative impact on lithium prices in the short term.” the company said in a press release.
However, SQM noted that it continues to see “strong fundamentals” behind long-term lithium demand growth, supported by strong EV sales volumes worldwide and decarbonization targets.
Importantly, according to SQM, as the company continues its expansion in Chile, its lithium carbonate capacity has reached 200,000 metric tons per year, and SQM expects to expand to 210,000 metric tons by early 2024. Expected to complete.
In Australia, the first production of spodumene concentrate at Mount Holland is expected during the quarter, while in China the company has started producing lithium hydroxide from lithium sulphate, SQM said.
SQM is a leading lithium producer. The company also has other divisions serving nutritional and industrial chemicals. In the Atacama Desert, located between Chile’s First and Second Regions, SQM has exclusive access to the world’s best and largest caliche ore and brine reserves. The company has the most extensive reserves of iodine and nitrate, as well as the highest concentrations of lithium and potassium on record.
Additionally, in 2017 the company began to diversify geographically by acquiring new resources to extract lithium from spodumene in Western Australia.
Disclaimer: The views expressed in this article are those of the author and may not reflect his views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is solely for informational purposes only. This is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. And the author of this article is not responsible for any loss and/or damage caused by the use of this publication.