Albemarle: M&A Confusion Drives ~60% Upside
Mon, Nov. 28, 4:58 PM
- The global market for lithium likely will remain “fairly balanced” for the next 4-5 years, with supply rising to meet increased demand from electric vehicles, Albemarle (NYSE:ALB) CEO Luke Kissam tells the Mines and Money conference in London.
- Demand for lithium likely will rise by 20K metric tons/year until 2021, but that can be met from additional expansion from the largest global producers, the CEO says.
- Lithium has become a key material in the battery supply chain as global automakers focus on launching electric cars and China tightens regulations on gasoline and diesel engines, but raw lithium extraction is geographically concentrated in South America, raising fears about supply as electric vehicles come down in cost, driving up demand for batteries.
- Other relevant tickers include SQM and FMC.
Mon, Nov. 7, 5:43 PM
Sun, Nov. 6, 5:35 PM
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Thu, Nov. 3, 6:14 PM
Fri, Sep. 9, 10:03 AM
- China’s Tianqi Lithium, the country’s largest lithium producer, says it plans to bid for a 23% stake in Chilean rival Sociedad Quimica y Minera (SQM -2.8%).
- Tianqi says it signed a non-binding offer with Oro Blanco to bid for its stake in Pampa Calichera, which in turn holds 23% of SQM.
- Chile's government has said it would not block a foreign takeover of SQM, and Tianqi's interest in gaining lithium supply may arouse worries that China could corner the market, but the U.S. Geological Survey estimates 14M tons of reserves of lithium globally, more than 400 years of supply based on last year’s production.
- Tianqi and SQM, together with U.S.-based Albermale (ALB -1.5%) and FMC Corp. (FMC -1.9%), dominate the global lithium market.
Wed, Aug. 3, 5:09 PM
Tue, Aug. 2, 5:35 PM
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Fri, Jul. 22, 10:39 AM
- The focus on Tesla Motors (NASDAQ:TSLA) turns to the Gigafactory unveiling next week with a grand opening scheduled for July 29. The event will include a tour of the massive facility and presumably more details on EV battery production plans.
- The Gigafactory buzz could also increase the focus on lithium supply and demand questions. Goldman Sachs and Deutsche Bank both expect lithium carbonate demand to almost double by 2025, although picking out potential winners and losers is no easy process.
- Bacanora Minerals (OTC:BCRMF) already has a long-term contract with Tesla, while other companies such as Albermarle (NYSE:ALB), FMC (NYSE:FMC), Nemaska Lithium (OTCQX:NMKEF), SQM (NYSE:SQM), Oroplata Resources (OTCPK:ORRP), Orocobre (OTCPK:OROCF), Critical Elements (OTCQX:CRECF), Lithium X Energy (OTCQB:LIXXF), and American Lithium Minerals (OTCPK:AMLM) have been bandied around on Seeking Alpha as potential lithium plays. Those names and more are on watch next week for volatility.
- There's also the Global X Lithium ETF (NYSEARCA:LIT) to watch as a catch-all.
Mon, Jul. 11, 11:14 PM
Thu, Jun. 23, 5:35 PM
- Albemarle (NYSE:ALB) will join the S&P 500, effective at the close of trading June 30, replace TECO Energy (NYSE:TE), which Emera is acquiring in a deal expected to be completed by that date.
- Fortive (NYSE:FTV) will be added to the index after the close of trading on July 1, replacing Columbia Pipeline (NYSE:CPGX), which is being acquired by TransCanada; FTV will be added on a zero price basis reflecting its spinoff from Danaher.
- EMCOR (NYSE:EME) will replace ALB in the S&P MidCap 400, while Inteliquent (NASDAQ:IQNT) will replace EME in the S&P SmallCap 600.
Fri, Jun. 17, 7:15 AM
- Albemarle (NYSE:ALB) agrees to sell its Chemetall surface treatment business to BASF (OTCQX:BASFY) for $3.2B.
- ALB acquired Chemetall, a supplier of specialty chemicals used in surface treatment of metals and plastics, as part of its purchase of Rockwood Holdings in 2014.
- ALB says the sale will help it invest “in the future growth of our high-priority businesses,” reduce leverage and return capital to shareholders.
- Chemetall reported $52.5M in EBITDA during Q1, up 14% Y/Y.
Fri, May 13, 2:55 PM
- Albemarle (ALB -0.5%) is exploring the potential sale of a surface-treatment division for as much as $3B, Bloomberg reports.
- Bank of America reportedly has been hired to help consider strategic options for ALB's Chemetall unit, which provides anti-corrosion chemicals to treat car chassis prior to spray-painting.
- ALB is looking for ways to help pay down debt from its $6B acquisition of Rockwood Holdings in 2014; Chemetall, which was part of the Rockwood deal, reported $52.5M in EBITDA for Q1, up 14% Y/Y.
Tue, May 10, 6:04 PM
- Albemarle (NYSE:ALB) declares $0.305/share quarterly dividend, in line with previous.
- Forward yield 1.8%
- Payable July 1; for shareholders of record June 15; ex-div June 13.
Tue, May 10, 4:32 PM
- Albemarle (NYSE:ALB): Q1 EPS of $1.12 beats by $0.26.
- Revenue of $865.4M (-2.1% Y/Y) beats by $50.6M.
- Shares -0.15%.
Mon, May 9, 5:35 PM
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Tue, Mar. 15, 5:53 PM
- Argentina, where the new business-friendly Macri government has begun making sweeping changes in a bid to return the country to economic orthodoxy, has an opportunity to build a vital lithium export business, Reuters reports.
- More than half the earth's known reserves of lithium - the small but essentially irreplaceable component of rechargeable batteries, used in consumer devices like mobile phones and electric cars - are found in an area straddling Argentina, Chile and Bolivia.
- FMC Corp. (NYSE:FMC) already is producing lithium from the salt flats in northern Argentina; lithium provides a small but growing part of FMC's revenues, with forecast sales of ~$250M this year.
- Western Lithium (OTCQX:WLCDF) is working with Korea's Posco (NYSE:PKX), whose chairman was in Argentina last month to meet with Macri and begin construction of a new lithium plant, due to begin commercial production within a year.
- Chile is popular with investors for its longtime free market credentials, while the dry desert climate is optimal for lithium production; local firm SQM has long operated there, and U.S. firm Albemarle (NYSE:ALB) is muscling in on SQM's turf after spending $6B to buy Rockwood.