Chile's SQM, the world's second-largest lithium producer, reported a 73% drop in third-quarter net profit on Wednesday, as higher sales volumes failed to offset a sharp decline in average sales prices.
The company posted a net profit of $131-million for the quarter, while revenue fell 41% year-on-year to $1.07-billion.
Lithium sales volumes rose 18% compared to the same period last year, but average prices plunged 67%, the miner said. Lithium made up 42% of its gross profit contribution this year, according to a statement.
SQM, which also produces fertilizers and industrial chemicals, extracts lithium from the Atacama salt flat in northern Chile, a region with some of the world's highest lithium concentrations, enabling low-cost production.
The company expects lithium sales volumes of 190 000 to 195 000 metric tons in 2024, according to its statement. It also expects pricing pressure to have a negative impact on average prices in Q4.
Edited by: Reuters
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