BUZZ-Aussie lithium miners set to end 2023 in red on weak EV sales

Reuters2023-12-28

** Most ASX-listed lithium miners are on track to post yearly losses as lithium prices slumped during the year due to slower-than-expected electric-vehicle sales

** IGO , Sayona Mining and Mineral Resources are set to lose 32%, 65.8% and 9.9% for the year, respectively

** Even though prices of the battery metal tumbled, the year was marked by a frenzy of deals involving lithium miners, given strong prospects for long-term demand

** Allkem , which recently closed its $10.6 bln buyout of U.S. giant Livent , is set to lose 12.5% this year

** Local mining moguls like Gina Rinehart and Chris Ellison also disrupted deals by increasing their stakes in takeover targets, enough to avoid foreign competition

** Gina Rihenhart's Hancock Prospecting increased its stake in Liontown Resources to 19.9%, enough to block the $4.3-bln buyout deal with top lithium maker Albemarle

** As of Wednesday's close, Liontown is up 21.97% this year

** Azure Minerals has risen over 16 times in value after receiving a $1.14-bln bid from Chile's SQM and Hancock Prospecting earlier this month

** "We suggest investors look beyond 4Q23 weak season. Restocking cycle should drive lithium price way above the marginal cost curve into 2024" - Macquarie

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(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))

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