The Allkem Ltd (ASX: AKE) share price is powering ahead on Friday morning following a company update regarding lithium pricing.
At the time of writing, the lithium mining company's shares are swapping hands for $12.19, up 6.65%.
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'Strong market conditions' support lithium carbonate and spodumene prices
In today's statement, Allkem provided an update on expected June quarter pricing for lithium carbonate and spodumene products.
The company stated that strong market conditions have positively impacted the price received for lithium carbonate spodumene concentrate.
As such, the June quarter (FY22) average price received for lithium carbonate is expected to be approximately US$35,000 per tonne. This includes free on board (FOB) on sales of approximately 3,500 tonnes of lithium carbonate.
FOB is a shipping term used to indicate who is responsible in the case of damaged or destroyed goods.
This means Allkem retains ownership and responsibility for the goods until they are loaded 'onboard' a shipping vessel. Once on the ship, all liability transfers to the customer/buyer of the lithium carbonate product.
It's worth noting that the preliminary March quarter (FY22) sales price was approximately US$27,236 per tonne. This is 9% higher than the previous guidance given by Allkem.
In addition, spodumene concentrate pricing in the June quarter is forecasted to be approximately US$5,000 per tonne based on sales of around 50,000 tonnes.
Allkem noted that March quarter sales were completed at a price of about US$2,218 per dry metric tonne (dmt). This included the spodumene concentrate that was delayed from the December quarter.
Allkem will further update the market with the final prices in the March quarterly report released on 14 April 2022.
About the Allkem share price
Over the past 12 months, the Allkem share price has surged 150% on the back of the lithium hype.
When looking at year to date, the company's shares are up around 18%.
Based on today's price, Allkem commands a market capitalisation of roughly $7.85 billion.
