Alliance Mineral’s Share Price Falls 13.5% after Poor Quarter Results
Since its September 2018 quarter, Alliance Mineral Assets Ltd’s [ASX:A40] lithium production has fallen around 20%, significantly impacting its trading value.
At the time of writing, Alliance Mineral’s share price has dropped 13.5%, to trade at 16 cents a share.
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Alliance Mineral’s share price see’s low feed grade lag
During October and November last year, Alliance was plagued by low feed grade which caused the drop in production and share price.
Thankfully, production has picked up during the December quarter, but there still seems to be some lag in Alliance Mineral’s share price. As it stands, production costs for the quarter was around $1,152 per tonne of lithium concentrate.
Alliance Mineral’s 2019 quarter outlook
On 29 January Alliance Mineral recorded a production guidance of 65,000–80,000 tonnes of lithium concentrate for the next six months, or until July this year.
Elsewhere, offtake negotiations of Alliance Mineral’s remaining 50% of long-term production is projected to be mostly completed by March 2019 quarter.
Alliance Mineral is also looking for new offtake partners to back its remaining stage 1 lithium and stage 2 lithium 2 concentrate production.
Time will tell if this increased production will create some damage control to Alliance Mineral’s shares.
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