The Zhitong Finance App learned that Daiwa released a research report stating that it reaffirmed Ganfeng Lithium's (01772) “outperforming the market” rating, and that the company's new low-cost project is expected to bear fruit from 2024 to 2026. However, due to the reduction in government subsidy forecasts, the earnings forecast per share for this year was lowered by 20%, and the target price dropped from HK$29.5 to HK$29. Ganfeng Lithium will disclose its first-quarter results on April 29. The bank estimates that the company's recurring net profit for the first quarter without considering one-time impairment was 530 million yuan.
Yamato pointed out that although they agree with Ganfeng Lithium's judgment that as the average selling price of spodumene falls to less than 1,000 US dollars (or even less than 900 US dollars) per ton, self-sufficiency is no longer that important, the bank expects the company to benefit from its low-cost project development. For the Cauchari-Olaroz project in Argentina, the bank is expected to produce more than 20,000 tons of lithium carbonate equivalent (LCE) this year, although production costs are expected to exceed $5,000 per ton during the period of capacity increase (at least in the first half of this year). The Goulamina and Mariana project will be produced this year.