"SQM weighs hard choices in Chile amid $3.7bn share wipeout"

" SQM weighs hard choices in Chile amid $3.7bn share wipeout \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nThe Chilean government\u2019s\u00a0 announcement of a new lithium model \u00a0is giving the nation\u2019s biggest producer some hard choices, and its shareholders a reason to sell. \r\n\r\nSQM, the fertilizer-turned-lithium giant, runs the planet\u2019s biggest and most profitable brine operation in Chile\u2019s northern desert under a contract that expires in 2030.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nUnder President Gabriel Boric\u2019s new lithium-development policy, SQM has two choices: Keep full control of the operation for the rest of the current contract and risk then losing it when it ends or let the state take a majority stake with the understanding that it could keep operating longer. Complicating the decision further is the fact Chile will have two changes of government before that date, which may bring with it a new lithium policy.\r\n\r\n\u201cI would look for SQM to strike an agreement fairly quickly,\u201d said Joe Lowry, an industry consultant.\r\n\r\nTo be sure, the only other producer in Chile, Albemarle Corp., is facing similar choices. But the US firm has about 20 years left on its contract and is far less reliant than SQM on a single, albeit massive, salt flat in Chile.\r\n\r\nSQM says it\u2019s analyzing the government\u2019s plan. There\u2019s plenty still up in the air. For example, it\u2019s unclear how the state would finance its share of existing operations and investments and what role it would play in decision making. It\u2019s also unknown whether SQM would be compensated were it forced to walk away after 2030, BTG Pactual analyst Cesar Perez-Novoa said. His back-of-the-envelope replacement value is about $5 billion.\r\n\r\nSQM\u2019s shares were already trading as if the contract wouldn\u2019t be renewed, Perez-Novoa said. But on Friday, the stock tumbled a record 19%,\u00a0 wiping out \u00a0$3.7 billion in market value.\r\n\r\n \r\n \r\n \r\n "

"SQM weighs hard choices in Chile amid $3.7bn share wipeout"

Government Urges Multichoice Ghana to Cut DSTV Subscription Prices by 30% Amid Cedi AppreciationAMP

Ownership of Ghana’s Black Volta Gold Project in Question Amid Acquisition ControversyAMP

Tech Titans Ellison, Bezos, and Zuckerberg Add $13 Billion in Single-Day Wealth Surge Amid Market RallyAMP