By Tom Daly
April 27 (Reuters) – China’s Tianqi Lithium Corp 002466.SZ, one of many world’s high lithium producers, indicated on Tuesday that it may return to revenue within the second quarter as costs for the steel utilized in electric-vehicle batteries surge.
Its outlook got here because it reported losses for the ultimate quarter of final 12 months and the primary quarter of 2021.
The closely indebted firm, which has been within the pink for the reason that third quarter of 2019, stated in a submitting that its “high precedence” was to cut back debt and leverage this 12 months.
It stated it made a internet lack of 247.9 million yuan ($38.23 million) within the first quarter of 2021, roughly halving its loss a 12 months earlier.
It now expects a internet lack of 130 million-250 million yuan within the first half, implying it may make a internet revenue of as a lot as 117.9 million within the second quarter.
Chengdu-based Tianqi began dropping cash within the third quarter of 2019 as lithium costs tanked amid oversupply. Costs bottomed out final August however Tianqi stated on Tuesday that it notched up an annual lack of 1.834 billion yuan for 2020, and a fourth-quarter lack of about 730.5 million yuan.
The corporate, which additionally has round a 25% stake in Chilean miner SQM, has additionally been hit by issues with the commissioning of its Kwinana lithium processing plant in Australia, which it says it’s now working to launch as quickly as doable.
Late final 12 months Tianqi secured a $1.four billion lifeline funding in its Australian operations from IGO Ltd IGO.AX and has obtained one other well timed increase from a rally in lithium costs after a three-year downturn.
Costs for battery-grade lithium carbonate in China AM-995C-LTCB, as assessed by Asian Meal, rose 67.6% over the primary quarter and are at the moment at 89,000 yuan per tonne, the best since August 2018, amid resurgent demand from the electric-vehicle sector.
($1 = 6.4842 Chinese language yuan renminbi)
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(Reporting by Tom Daly; Modifying by Susan Fenton Modifying by Marguerita Choy)
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