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Mar 31, 2024
Arcadium Lithium Plc Q1 2024 Earnings Report
Arcadium Lithium's first quarter as a combined company was marked by solid results, driven by realized pricing for lithium hydroxide and carbonate over $20,000 per product metric ton. The company is on track to achieve $60 to 80 million in synergies and cost savings in 2024 and is progressing with capacity expansions to reach 170,000 LCEs by 2026.
Key Takeaways
Arcadium Lithium reported first quarter revenue of $261 million and net income of $15.6 million, or 1 cent per diluted share. The company achieved average realized pricing of over $20,000 per product metric ton for its combined hydroxide and carbonate volumes. They also reduced their global workforce by approximately 11% in the first quarter.
Achieved average realized pricing of over $20,000 per product metric ton for lithium hydroxide and carbonate.
On track to realize $60 to 80 million in synergy and cost savings in 2024.
Reduced global workforce by approximately 11% in the first quarter.
Expects to increase total capacity to 170,000 LCEs by the end of 2026.
Arcadium Lithium Plc
Arcadium Lithium Plc
Forward Guidance
Arcadium Lithium is bringing additional capacity into production in 2024 and plans to increase total capacity to 170,000 LCEs by 2026. The company expects to achieve a 40% increase in combined lithium hydroxide and lithium carbonate sales volumes for the full year, weighted towards the second half of 2024.
Positive Outlook
- Bringing additional capacity into production in 2024.
- Expects to increase total capacity to 170,000 LCEs by 2026.
- First 10,000 metric ton expansion at Fénix is fully commissioned and producing lithium carbonate at close to full capacity rates.
- The 25,000 metric ton expansion at Olaroz is also producing lithium carbonate.
- New 5,000 metric ton unit in Bessemer City (U.S.) and 15,000 metric ton unit in Zhejiang (China) are undergoing qualification with key customers.
Challenges Ahead
- Combined volumes in the first quarter were down versus the prior quarter, driven primarily by a decline in spodumene sales due to lower production at Mt. Cattlin.
- Prices were down compared to the beginning of 2023.
- Ramp-up period needed for conventional pond-based extraction at Olaroz.
- Multiple ongoing capacity expansions in Argentina and Canada will require roughly $1.6 billion in growth capital from 2024 to 2026.
- Expansion plans will adapt as market conditions demand.