https://www.reuters.com/markets/commodities/lithium-miners-gear-up-q1-earnings-investors-focus-tumbling-prices-2023-05-02/?fbclid=IwAR2svH5evzQJnb7aG97ZXNZ4TaqvfCDey8NFpNLElOcn25KflOkTk27qeI4
Livent reported earnings today, up 96% for the quarter compared to a year ago on increased production and better prices in Argentina.
Albemarle reports tomorrow. Also expected to do better.
Market prices for lithium have been falling since record highs last fall. They seem to have stabilized and still well above prices from two years ago. Yahoo shows Livent pe as 16.29. Albemarle is largest and has pe of 7.6.
Chile has indicated plans to nationalize its lithium business. SQM is largest there. People are worried about Albemarle’s operations there, but they say nationalization will take decades. Also has production in Australia, China and the US.
Requirements for electric vehicles should drive demand.
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SQM Reports Earnings
https://www.reuters.com/markets/commodities/chiles-sqm-start-lithium-talks-with-state-miner-codelco-coming-weeks-says-ceo-2023-05-18/?fbclid=IwAR0Iv5TUH_yt0do9esXBayjXw2pvhtZDaZlNLrAiQ4ipJMQ6ZthDIe7wPRw
Discussion with Chile regarding nationalization to begin soon.
" SQM’s revenues landed at $2.26 billion for January to March, up almost 12% from a year earlier, though profits dipped 6%."
Lithium prices have declined from their high last fall, but seem to have bottomed and are now recovering. Still at nice gain from two years ago. Working through inventory from slow down in China EV sales last year.
“We are positive about volumes for the second quarter and semester,” Ramos said when asked about the company’s outlook, citing a ramp up of activity in China.
“The second quarter is showing a more stable pattern,” he said.