{"id":735629,"date":"2018-06-01T16:28:38","date_gmt":"2018-06-01T16:28:38","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=735629"},"modified":"2018-06-01T16:28:38","modified_gmt":"2018-06-01T16:28:38","slug":"shares-in-lithium-giant-fall-on-disappointing-auction-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=735629","title":{"rendered":"Shares in lithium giant fall on disappointing auction"},"content":{"rendered":"

By Frik Els<\/a><\/span> <\/p>\n

Shares in Chilean lithium producer SQM (NYSE:SQM) trading in New York in the form of ADRs declined more than 3% on Friday dropping the market value of the company to $14 billion following the auction of a large block of shares.<\/p>\n

Canadian fertilizer company Nutrien auctioned its remaining stake SQM for nearly $1 billion. Reuters reports the nearly 20.17 million B-series shares in SQM sold on Chile’s IPSA stock exchange for 31,000 pesos ($49.05) per share.<\/p>\n

A fortnight ago Nutrien offloaded a 24% stake in SQM to China’s Tianqi Lithium for just over $4 billion to meet regulatory commitments after the company was formed by the merger of Agrium and Potash Corp of Saskatchewan.<\/p>\n

The Santiago-based company announced last week it will more than triple its production capacity within three years<\/q><\/p>\n

Santiago-based SQM is the world’s number three miner of lithium, supplying around a fifth of the battery raw material globally. Shares in SQM are now down 13.4% since the Tianqi transaction; a long anticipated deal that was seen as a litmus test for the burgeoning battery raw material market.<\/p>\n

SQM announced last week it will more than triple its production capacity<\/a> within three years.<\/p>\n

A relatively modest investment of $525 million would lift SQM’s capacity in the Atacama salt flats from 48,000 tonnes to 180,000 tonnes by early 2021. $75m will be spent this year to lift capacity to 70,000. Total global supply last year was an estimated 215,000 tonnes.<\/p>\n

Lithium carbonate prices have been drifting lower from highs in December but remain around the $20,000 level a tonne from $6,450 per tonne at the beginning of 2015.<\/p>\n

The direction of lithium prices has attracted widely diverging<\/a> views<\/a>. While analysts agree that the booming electric vehicle market will dramatically boost demand, bears contend that a massive supply response could swamp the market.<\/p>\n

Unlike cobalt, another crucial battery ingredient, lithium is abundant and existing brine producers in South America have the capacity to quickly increase output. Combined with many hard-rock projects coming on stream in Australia, production could more than triple within less than a decade.<\/p>\n

NOW READ: World’s largest ever tech fund enters lithium race<\/a><\/h4>\n

The post Shares in lithium giant fall on disappointing auction<\/a> appeared first on MINING.com<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Infomine<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Frik Els Shares in Chilean lithium producer SQM (NYSE:SQM) trading in New York in the form of ADRs declined more than 3% on Friday dropping the market value of the company to $14 billion following the auction of a large block of shares. Canadian fertilizer company Nutrien auctioned its remaining stake SQM for nearly […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[360],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/735629"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=735629"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/735629\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=735629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=735629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=735629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}