Arcadium Lithium Reports 2024 Performance Amid Acquisition
Arcadium Lithium Announces Fourth Quarter and Full Year Results for 2024
Today, Arcadium Lithium plc (NYSE: ALTM) shared its financial performance for the fourth quarter and the full year 2024. As the company prepares for its acquisition by Rio Tinto, it has opted not to conduct an earnings conference call, in line with customary practices for such transactions.
Acquisition and Future Guidance
The upcoming acquisition by Rio Tinto, announced in a previous communication, has resulted in the company withdrawing its 2025 financial guidance, alongside its previous operational forecasts. The strategic move aligns with current market conditions and aims to stabilize operations during this transition period.
Fourth Quarter Highlights
In the fourth quarter, Arcadium Lithium recorded a revenue of $289.0 million, albeit with an attributable GAAP net loss of $14.2 million, translating to a loss of 1 cent per diluted share. When considering Adjusted EBITDA, the report shows a figure of $73.7 million, signaling a meaningful transition as the company adjusts to fluctuating lithium market dynamics.
Sales Volume Insights
During this period, total volumes sold saw a remarkable increase of 56% on a Lithium Carbonate Equivalent (LCE) basis compared to the previous quarter, indicating sustained demand. However, sales were stable when compared to the prior year, which reflects customers fulfilling their contractual commitments.
Price Trends
Average realized pricing for lithium hydroxide and carbonate combined stood at $15,700 per metric ton for the fourth quarter, down from $16,200 in the third quarter. The decrease in average pricing across most lithium products was attributed to softer market conditions, though lithium hydroxide pricing remained stable due to favorable customer agreements.
Annual Overview for 2024
For the entire year, Arcadium Lithium achieved total revenues of $1,007.8 million, with a notable attributable GAAP net income of $103.2 million, equating to a profit of 9 cents per diluted share. The achieved Adjusted EBITDA totaled $324.5 million, reflecting the company’s resilience through changing market conditions.
Adjustments in Product Sales
While there was a slight decline in total volumes sold for the full year on an LCE basis, increased sales of lithium carbonate and hydroxide compensated for reduced spodumene sales linked to lower production rates from mining operations.
Future Growth Strategy
Paul Graves, the president and CEO of Arcadium Lithium, emphasized that 2024 was a pivotal year focused on operational discipline and strategic planning. The company's long-term strategy of securing solid customer relationships and positioning itself for future growth remains a critical focal point as it moves forward.
Transaction Timeline with Rio Tinto
On October 9, 2024, a definitive agreement was made for Rio Tinto to acquire Arcadium Lithium at $5.85 per share. This transaction received necessary shareholder approvals on December 23, 2024. Currently, all required regulatory approvals have also been secured, and both companies are on track to close the deal by March 6, 2025.
Contact Information
For investor inquiries, please contact:
Daniel Rosen
+1 215 299 6208
daniel.rosen@arcadiumlithium.com
Phoebe Lee
+61 413 557 780
phoebe.lee@arcadiumlithium.com
Media queries can be directed to:
Karen Vizental
+54 9 114 414 4702
karen.vizental@arcadiumlithium.com
Frequently Asked Questions
What are Arcadium Lithium's key financial highlights for 2024?
In 2024, Arcadium Lithium reported revenues of $1,007.8 million with a net income of $103.2 million. Adjusted EBITDA reached $324.5 million.
Why has the company withdrawn its future guidance?
The withdrawal of guidance is due to the upcoming acquisition by Rio Tinto and uncertainties surrounding the transaction's completion.
How did the acquisition affect the earnings call?
Arcadium Lithium decided not to hold an earnings conference call due to the ongoing acquisition process, which is a usual practice during such activities.
What was the revenue for the fourth quarter?
The fourth-quarter revenue for 2024 was reported at $289.0 million.
What steps is the company taking for future growth?
Arcadium Lithium continues to focus on operational efficiency and securing long-term contracts with customers to ensure pricing stability and growth potential.
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