🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UPDATE 1-Tianqi Lithium says weighing asset sales, strategic investors to slice debt

Published 17/04/2020, 11:23 pm
SQMA
-
002466
-
99C-LTCB
-

* Tianqi responds to report it wants to sell stake in Australia JV

* Says considering sales, strategic investors but nothing signed

* Liquidity pressure has increased as lithium prices fall -filing (Adds detail from filing, background)

By Tom Daly

BEIJING, April 17 (Reuters) - Tianqi Lithium Corp 002466.SZ , one of the world's top lithium producers, said on Friday it was exploring selling equity and assets, as well as bringing in strategic investors to address liquidity problems but that no agreements had yet been signed.

The Chinese company, which is set to post heavy losses in both 2019 and the first quarter of 2020 amid low lithium prices, made the comments in a filing to the Shenzhen Stock Exchange after reports it was looking to sell a stake in its Australian joint venture Talison Lithium to cut debt. Tianqi has been struggling to repay loans taken out to finance its high-profile $4.1 billion acquisition of nearly quarter of Chilean miner SQM SQMA.SN - agreed in 2018 when prices for lithium, a key ingredient in batteries for electric vehicles, were much higher.

The company said its "liquidity pressure increased" in the fourth quarter of 2019 due to falling lithium prices AM-99C-LTCB , which are currently around two-thirds lower than they were two years ago, as well as rising financial expenses.

To address this, Tianqi is looking at the feasibility of various financing tools, including "the introduction of domestic and foreign strategic investors (and) the sale of assets and equity," the filing said, without specifying what the company was prepared to divest.

Talison Lithium - in which Tianqi partners U.S.-based Albemarle Corp ALB.N - operates the Greenbushes lithium mine in Western Australia, as well as the Kwinana processing plant which is supposed to produce battery-grade lithium hydroxide but has had its commissioning postponed. NL4N2BF0DE

Tianqi said it had not yet signed any legally binding agreement to sell assets or bring in a strategic investor.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.