- Write by:
-
Thursday, November 2, 2023 - 22:51:36
-
170 Visit
-
Print
Mining News Pro - Albemarle, the world’s largest producer of lithium for electric vehicle batteries, trimmed its annual forecast on Wednesday and reported a lower-than-expected quarterly profit amid slumping prices for the ultralight metal.
Shares fell 1.9% to $120.67 in after-hours trading.
Worries have been mounting that global EV demand is softening and not keeping pace with aggressive growth targets set by automakers and regulators.
That is reflected in lithium prices, which have tumbled more than 60% this year. Albemarle, which supplies Tesla and other automakers, sells most of its lithium on long-term contracts linked to market pricing.
The company now expects the volume of lithium it sells this year to increase at least 30% from last year’s levels, but for prices to increase only 15%, well short of the strong growth Wall Street had come to expect.
Albemarle reported third-quarter net income of $302.5 million, or $2.57 per share, compared to $897.2 million, or $7.61 per share, in the year-ago period.
Excluding one-time items, Albemarle earned $2.74 per share. By that measure, analysts expected earnings of $3.99 per share, according to IBES data from LSEG.
For the year, the company trimmed its net sales forecast to a range of $9.5 billion to $9.8 billion. Albemarle previously expected $10.4 billion to $11.5 billion.
The Charlotte, North Carolina-based company plans to hold a conference call with investors on Thursday to discuss the results.
Albemarle this month abandoned its $4.2 billion bid for Australian lithium developer Liontown Resources, citing “growing complexities.” Hancock Prospecting, an iron ore miner controlled by Gina Rinehart, Australia’s richest person, controls more than 19% of Liontown’s shares.
Rival Livent posted a drop in quarterly profit on Tuesday, citing expansion delays at a key Argentina project.
Short Link:
https://www.miningnews.ir/En/News/627601
Marex Group Plc and a group of the London-based firm’s shareholders raised about $292 million in a US initial public ...
China’s Tianqi Lithium said on Thursday it has formally requested that a proposed joint venture between lithium company ...
India is in talks with several countries seeking partnerships for technical help on lithium processing, said four ...
Chile’s state copper company Codelco defended its proposed lithium production tie-up with SQM in response to criticism ...
Nigeria has revoked 924 dormant mining titles immediately and invites investors to freely apply for the affected ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Chile’s state-run miner Codelco plans to select a partner for a future lithium project in one of the country’s top salt ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
No comments have been posted yet ...