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MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  Tianqi Lithium Corporation    002466   CNE100000T32

TIANQI LITHIUM CORPORATION

(002466)
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Tianqi Lithium gets 1-month reprieve on $1.9 bln loan repayment

11/30/2020 | 07:06pm EST

(Repeats story to more subscribers.)

* Lithium producer had $1.9 bln of loan repayments due by end-Nov

* Tianqi, lenders have until Dec. 28 to sign modified loan deal

* Extension buys time for Tianqi to find solution -brokerage

Nov 30 (Reuters) - China's Tianqi Lithium Corp said on Monday it had signed a letter with a syndicate of banks to extend by a month the maturity date on $1.884 billion of loans that were due for repayment at the end of November.

Tianqi, one of the world's top producers of lithium chemicals used in electric-vehicle batteries, had repeatedly said its operations could be severely impacted if it did not repay the money, which was used to acquire a 23.8% stake in Chilean miner SQM in 2018, by the due date.

The last-minute reprieve gives the company and its lenders, led by China Citic Bank, until Dec. 28 to sign a modified loan agreement, Tianqi said in a Shenzhen Stock Exchange filing. Otherwise, Tianqi will have to pay back the money by that date.

The two sides are "actively negotiating the key terms," of the modified loan agreement, it said.

If the conditions of the extension letter cannot be met, however, the repayment deadline will not be extended at all, the filing said, triggering a default. Tianqi must also repay outstanding interest on the loans by Dec. 10.

Daiwa Capital Markets said in a note it saw the extension as a way to buy time for Tianqi.

"We expect Tianqi to reveal a solution for the repayment of the annexation loan within a month, potentially a strategic investment or sale of Australian assets amid a rebound in the lithium price," it said.

Tianqi, alongside Albemarle Corp, jointly operates the Greenbushes lithium mine in Australia, where it also owns the Kwinana processing plant.

China Citic Bank did not immediately respond to a request for comment outside normal business hours.

Tianqi paid $4.1 billion for the SQM stake, taking on $3.5 billion of debt to finance the acquisition.

But lithium carbonate prices <AM-99C-LTCB> in China have plunged around 70% since it agreed the deal, amid oversupply, leaving Tianqi in the red and unable to pay back its borrowings. ($1 = 6.5773 Chinese yuan renminbi)

(Reporting by Tom Daly and Min Zhang; additional reporting by Cheng Leng; Editing by Ed Osmond and Lisa Shumaker)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALBEMARLE CORPORATION -1.22% 180.14 Delayed Quote.22.11%
CHINA CITIC BANK CORPORATION LIMITED -0.77% 5.16 End-of-day quote.0.98%
CITIC LIMITED 0.67% 6.02 End-of-day quote.9.65%
CITIC SECURITIES COMPANY LIMITED 0.56% 30.35 End-of-day quote.3.23%
TIANQI LITHIUM CORPORATION 1.89% 60.89 End-of-day quote.55.05%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.21% 6.4798 Delayed Quote.-0.23%
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Financials
Sales 2020 3 164 M 488 M 488 M
Net income 2020 -1 389 M -214 M -214 M
Net Debt 2020 24 844 M 3 835 M 3 835 M
P/E ratio 2020 -67,0x
Yield 2020 -
Capitalization 89 941 M 13 853 M 13 882 M
EV / Sales 2020 36,3x
EV / Sales 2021 26,3x
Nbr of Employees 1 851
Free-Float 58,8%
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Mean consensus OUTPERFORM
Number of Analysts 7
Average target price 42,25 CNY
Last Close Price 60,89 CNY
Spread / Highest target 31,4%
Spread / Average Target -30,6%
Spread / Lowest Target -79,6%
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Managers and Directors
NameTitle
Wei Ping Jiang Chairman & President
Jin Yan Chairman-Supervisory Board
Jun Zou Chief Financial Officer & Director
Qing Yang Member-Supervisory Board
Shi Fu She Member-Supervisory Board
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