Capex on the up across the board
Another month, another bunch of capex over-runs for new projects and it’s starting to become rather ubiquitous within the sector. This month it was Allkem (ASX:AKE), which reported a US$572m cost blow out at its global development projects, and Liontown Resources (ASX:LTR) which reported a further 6% increase in the capital cost estimate at Kathleen Valley to A$951m. Allkem reported a 33% increase in spend at James Bay to US$381.5m, coupled with a small downward tweak in production to 311Ktpa of SC vs 321Kt in its 2021 study. It also raised its cash cost estimate to US$407/t from US$333/t previously.
Topics
Allkem
Argentina
Australia
Canada
Capex
Liontown
Opex