We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
POSCO Secures $700 Million Facility for Argentina Lithium Operations
Read MoreHide Full Article
Key Takeaways
POSCO Holdings secured a $700M credit facility to support its Argentine lithium business.
The financing provides working capital for its first lithium plant and a second due in 2H 2026.
The Sal de Oro project targets four phases and an eventual annual capacity of about 100,000 metric tons.
POSCO Holdings Inc. (PKX - Free Report) has secured a $700 million short-term credit facility from IDB Invest, the private-sector arm of the Inter-American Development Bank Group, to support its Argentina-based brine lithium business. POSCO Argentina received approval for the facility on Aug. 4, providing working capital for its first lithium plant and a second plant scheduled for completion in the second half of 2026.
The financing strengthens POSCO’s liquidity and is expected to reduce funding costs through competitive interest rates and preferential tax treatment on interest payments and financial transaction taxes. IDB Invest also recognized the project’s compliance with global ESG standards and its contribution to economic development in Latin America.
The facility comes as POSCO accelerates development of its Sal de Oro lithium project at Argentina’s Salar del Hombre Muerto. The broader project comprises four phases, with eventual production capacity of around 100,000 metric tons per year, supporting the company’s strategy of establishing lithium as a key strategic-resource business.
Overall, the credit facility provides POSCO Holdings with additional financial flexibility to ramp up its Argentine lithium operations while strengthening its position in the global critical-minerals supply chain. The financing, combined with Argentina’s Regime for Large Investments (“RIGI”) investment incentives and Korea-Argentina cooperation on critical minerals, should help accelerate project development and enhance the long-term competitiveness of POSCO Holdings’ battery-materials portfolio.
Building on these strengths, POSCO Holdings will advance its resource-focused “Triple Core” strategy across industrial, strategic and energy resources, while further strengthening its lithium supply chain and position as a leading critical-resources supplier.
PKX’s Price Performance
Shares of POSCO have gained 23.2% over the past year compared with 27% decline in its industry.
Image Source: Zacks Investment Research
PKX’s Zacks Rank & Other Key Picks
PKX currently carries a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for CIB’s current-year earnings is pegged at $10.87 per share, indicating a 48.7% year-over-year decrease. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise of 12.1%.
The Zacks Consensus Estimate for MMM’s current-year earnings is pegged at $8.96 per share, indicating a 11.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise of 4.1%.
The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.41 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise of 6.6%.
View the Zacks #1 Rank List
Image: Bigstock
POSCO Secures $700 Million Facility for Argentina Lithium Operations
Key Takeaways
POSCO Holdings Inc. (PKX - Free Report) has secured a $700 million short-term credit facility from IDB Invest, the private-sector arm of the Inter-American Development Bank Group, to support its Argentina-based brine lithium business. POSCO Argentina received approval for the facility on Aug. 4, providing working capital for its first lithium plant and a second plant scheduled for completion in the second half of 2026.
The financing strengthens POSCO’s liquidity and is expected to reduce funding costs through competitive interest rates and preferential tax treatment on interest payments and financial transaction taxes. IDB Invest also recognized the project’s compliance with global ESG standards and its contribution to economic development in Latin America.
The facility comes as POSCO accelerates development of its Sal de Oro lithium project at Argentina’s Salar del Hombre Muerto. The broader project comprises four phases, with eventual production capacity of around 100,000 metric tons per year, supporting the company’s strategy of establishing lithium as a key strategic-resource business.
Overall, the credit facility provides POSCO Holdings with additional financial flexibility to ramp up its Argentine lithium operations while strengthening its position in the global critical-minerals supply chain. The financing, combined with Argentina’s Regime for Large Investments (“RIGI”) investment incentives and Korea-Argentina cooperation on critical minerals, should help accelerate project development and enhance the long-term competitiveness of POSCO Holdings’ battery-materials portfolio.
Building on these strengths, POSCO Holdings will advance its resource-focused “Triple Core” strategy across industrial, strategic and energy resources, while further strengthening its lithium supply chain and position as a leading critical-resources supplier.
PKX’s Price Performance
Shares of POSCO have gained 23.2% over the past year compared with 27% decline in its industry.
PKX’s Zacks Rank & Other Key Picks
PKX currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Conglomerates space are Grupo Cibest S.A. (CIB - Free Report) , 3M Company (MMM - Free Report) and Griffon Corporation (GFF - Free Report) . CIB sports a Zacks Rank #1, while MMM and GFF carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CIB’s current-year earnings is pegged at $10.87 per share, indicating a 48.7% year-over-year decrease. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise of 12.1%.
The Zacks Consensus Estimate for MMM’s current-year earnings is pegged at $8.96 per share, indicating a 11.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise of 4.1%.
The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.41 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise of 6.6%.