SQM destroys more than $ 1,650 million in equity since the entrance of Tianqi


On December 3, the largest operation in the history of the Santiago Stock Exchange was completed: China Tianqi received the shares that Canadian Nutrien had in SQM, equivalent to 24% of the non-metallic mining property, by more than US $ 4 billion.

Since the closing of the transaction classified as the business of the year, the company's shares linked to the businessman Julio Ponce Lerou accumulate a loss of more than 11%. The collapse translates into the loss of US $ 1,650 million in stock market capitalization.

So far, this Friday, SQM rises 2% on the Santiago Stock Exchange and its market value reaches US $ 10,417 million.

And as they comment on the market, there are two reasons to explain the turmoil that hit SQM. First, there is an extensive discussion on which route lithium prices will take.

The stock market auction that helped Nutrien cut taxes to pay for SQM's 24% sale

"The market erroneously sees the wrong price and this is because the lithium is being sold with technical specifications given by each buyer. Thinking lithium is a commodity is incorrect ", explains a specialist.

In fact, the biggest blow SQM has suffered since Tianqi entered the property occurred yesterday. Canada's Orocobre estimated a 13% drop in the value of the mineral during the fourth quarter and said it did not expect a near-term recovery.

Specifically, the producer's report states that the price of lithium carbonate in the quarter would reach $ 10,800 per ton, compared to the average of $ 12,470 per tonne between January and June.

SQM erases $ 645 million in stock market after cut in ore price estimate

This warning has caused the non-metallic miner to lose $ 650 million in stock market after a collapse of more than 6% in Series B stocks.

The second factor that explains the fall that SQM has accumulated in the last three weeks corresponds to the delay of the company's new factory, which affected the paper. However, the analyst details that the problem is solved.

"They have installed a new expansion line inside the existing one and, in the process of synchronization, they have found this delay. That is already solved," says the operator.


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