Loading...
•
Jun 30, 2024
Arcadium Lithium Plc Q2 2024 Earnings Report
Arcadium Lithium reported mixed Q2 2024 results with revenue of $255 million and net income of $85.7 million. The company is focusing on cost savings and adjusting capital spending in response to market conditions.
Key Takeaways
Arcadium Lithium reported second quarter revenue of $255 million and GAAP net income of $85.7 million, or 7 cents per diluted share. The company realized an average price of $17,200 per product metric ton for combined lithium hydroxide and carbonate volumes. Arcadium Lithium is reducing capital spending by approximately $500 million over the next 24 months and expects to deliver cost savings at the higher end of its $60 to 80 million guidance range for 2024.
Second quarter revenue was $255 million and GAAP net income was $85.7 million, or 7 cents per diluted share.
The company realized average pricing of $17,200 per product metric ton for combined lithium hydroxide and carbonate volumes.
Arcadium Lithium is projecting a 25% increase in combined lithium hydroxide and lithium carbonate sales volumes for the full year compared to 2023.
Capital spending is being reduced by ~$500 million over the next 24 months.
Arcadium Lithium Plc
Arcadium Lithium Plc
Forward Guidance
Arcadium Lithium expects higher overall volumes year over year, with a 25% increase in combined lithium hydroxide and lithium carbonate sales offset by lower spodumene concentrate sales. They provided revenue and Adjusted EBITDA outcomes based on two different lithium market price scenarios for the second half of 2024.
Positive Outlook
- Expecting to deliver cost savings in 2024 at the higher end of its $60 to 80 million guidance range.
- Projecting a 25% increase in combined lithium hydroxide and lithium carbonate sales volumes for the full year compared to 2023.
- Increasing production levels at its recently completed expansions in Argentina.
- Combined 30,000 metric tons of expansions in Bessemer City (U.S.), Zhejiang (China) and Naraha (Japan) are all finalizing qualification with key customers.
- Expect a return to healthier market fundamentals over time.
Challenges Ahead
- Market is clearly indicating that the industry does not need to add supply at the same pace as previously expected.
- Decided to defer investment in two of our four current expansion projects.
- Intends to pause current investment in its 40,000 metric ton (LCE) spodumene Galaxy project in Canada.
- Revisiting the sequencing of its combined 25,000 metric ton lithium carbonate projects at the Salar del Hombre Muerto in Argentina.
- Lower spodumene sales.