SANTIAGO, Dec 23 (Reuters) - Chile´s SQM SQMB.SN stated on Wednesday its board of administrators ag
SANTIAGO, Dec 23 (Reuters) – Chile´s SQM SQMB.SN stated on Wednesday its board of administrators agreed to start the method of elevating $1.1 billion in capital by means of the sale of frequent inventory to assist underwrite an bold growth of its lithium, nitrate and iodine operations.
The world´s No. 2 lithium producer stated in a press release it might name a rare shareholders assembly on Jan. 22 to green-light a proposal to subject 22.four million of the corporate´s sequence B shares.
If authorized, the capital will assist finance its beforehand introduced $1.9 billion, four-year funding plan, which goals to greater than double its capability to provide lithium carbonate in Chile to 180,000 tonnes yearly from 70,000 tonnes.
Lithium is a key ingredient within the batteries that energy cellphones and electrical autos.
SQM stated within the assertion that funds may also be put towards its Mount Holland lithium mission in Australia. A ultimate funding resolution on that mission is slated for the primary quarter of 2021, the assertion stated.
Many miners had introduced plans to spice up output of lithium forward of an anticipated spike in demand. However the COVID-19 pandemic briefly slammed the brakes on the electrical automobile revolution, driving down costs, denting income and forcing many firms to shelve growth plans.
SQM stated, nevertheless, it might push ahead with its personal growth regardless of the pandemic, fueled by a gentle improve of its gross sales volumes in 2020.
The corporate stated it believed the lithium market would increase long-term by 20% a yr, reaching 800,000 to 1 million metric tons by 2025.
(Reporting by Dave Sherwood; Modifying by Peter Cooney)
(([email protected]; +56 9 9138 1047, +56 2 2370 4224; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.