Company Overview: Allkem Limited operates as a lithium chemicals company. It owns lithium brine and borax operations in Argentina, a hard-rock lithium operation in Australia, and a lithium hydroxide conversion facility in Japan.

1.1 Latest Updates

• Allkem Limited was de-listed at the trading day's close, January 5, 2024. Allkem Ltd is a merged entity of two equals, Allkem and Livent Corporation, whose merger transaction successfully closed on January 4, 2024. Arcadium Lithium Plc acquired all the issued share capital of Allkem, following the scheme of arrangement between Allkem and its shareholders.
• The scheme considerations are as follows: In the case of Allkem shareholders on Allkem's Australian principal register, one Arcadium Lithium CDI each per equity share held at the record date of December 27, 2023, is allowed by default, unless elected by the shareholder to receive the Arcadium lithium equity shares instead.
• In case the Allkem shareholder is put on record with the Canadian branch register, one Arcadium Lithium share for each Allkem share held at the scheme record date is allowed unless CDI is opted by the shareholder in advance.
• Ineligible overseas shareholders who will not receive Arcadium’s share, or CDI's will receive their share of net proceeds from the sale of Arcadium Lithium CDI's by sale Nominee. Arcadium shares commenced trading on NYSE at 9:30 am (NY time) on January 4, 2024. The delisting of Allkem shares followed the next day, on January 5, 2024.         

1.2 Key Risks and Challenges

• Any adverse movement in the prices could affect business growth as it generates a major portion of revenue from the sale of lithium carbonate.
• The extreme change in the climate could lead to a temporary suspension of operations.
• The ongoing labour shortage may result in falling production growth.

1.3 Stock Update

The stock price has witnessed a decline of ~26.6% in the last six months.  At the market close of January 5, 2024, Allkem Limited was trading at a price of AUD 9.83. Hence, we close the position on the stock at AUD 9.83.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 5 January 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Disclaimer

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