'Amongst the best in the world': Why the Allkem share price is charging higher today

Allkem may be sitting atop another world class asset.

| More on:
A man holding a cup of coffee puts his thumb up and smiles while at laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Allkem Ltd (ASX: AKE) share price looks set to end the week on a positive note.

In morning trade, the lithium miner's shares are up 3% to $14.96.

Why is the Allkem share price rising?

Investors have been buying the company's shares today after it announced a mineral resource upgrade to its James Bay Lithium Project in Canada.

According to the release, the updated mineral resource is now 110.2 Mt at 1.30% Li2O. This includes 54.3 Mt at 1.30% Li2O in the Indicated category and an additional 55.9 Mt at 1.29% Li2O in the Inferred category.

Management believes this solidifies the status of the James Bay Lithium Deposit in Québec as a tier-1 lithium pegmatite mineral resource and long-life asset.

The good news is that it may not stop there. The company notes that the maiden inferred mineral resource in the NW Sector remains open along strike and at depth with excellent growth potential.

Allkem revealed that a significant campaign of infill and extensional drilling is planned during the Canadian winter. This will test for along-strike and down-dip extensions of the pegmatite dykes beyond the area included in this mineral resource estimate.

'Amongst the best in the world'

Allkem's managing director and CEO, Martin Perez de Solay, was pleased with the news. He believes the company has one of the best assets in the world in its portfolio. The CEO said:

James Bay is now one of the largest spodumene lithium assets and clearly has the potential to grow even further as the boundaries of mineralisation are tested through an additional drilling program commencing later in the year.

The size and grade of this resource is amongst the best in the world and will underpin Allkem plans for future production and processing of lithium in Québec.

The Allkem share price is now up 20% over the last 12 months.

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

smiling worker stands before power generator technology
Materials Shares

Fortescue shares jump 5% on record performance

This mining giant was in fine form during the quarter.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Materials Shares

Should you buy Pilbara Minerals shares today?

Let's see if analysts think investors should be buying the lithium giant's shares.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Expert says this ASX mining stock could rise almost 30%

Let's see which miner is being tipped as a buy for investors right now.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

BHP shares charge higher on record copper and iron ore production

Let's see how the miner performed during the fourth quarter.

Read more »

A man stands with hands on hips surveying construction of three high-rise buildings.
Materials Shares

Building activity on the rise – will ASX materials shares benefit?

New data from the March quarter shows a sharp rise in building activity. 

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Macquarie predicts 11% upside for this ASX materials stock

Here's why the broker is positive on the stock.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Rio Tinto share price falls on Q2 update

Let's see what the mining giant reported for the second quarter.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Materials Shares

Could these 3 ASX materials shares be set to double?

This broker has buy ratings and aggressive price targets for these holdings. 

Read more »