Arcadium Lithium Releases Second Quarter 2024...

Arcadium Lithium Releases Second Quarter 2024 Results

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They are up 11% in after market

look for:

• Realized Average Pricing of $17,200 / Product Metric Ton for Lithium Hydroxide and Carbonate in the Second Quarter
• Tracking Towards High End of $60 to 80 million Cost Savings Guidance in 2024 and Accelerating Further Cost Reductions
• Projecting a 25% Increase in Combined Lithium Hydroxide and Carbonate Volume in Both 2024 and 2025 versus the Prior Year
• Reducing Capital Spending by ~$500 million Over Next 24 Months in Response to Current Market Conditions

Capital Spending and Capacity Expansions

"Despite where lithium market prices are today, we still see a strong long-term growth trajectory for lithium demand and expect a return to healthier market fundamentals over time," continued Graves. "However, the market is clearly indicating that the industry does not need to add supply at the same pace as previously expected. We have therefore decided to defer investment in two of our four current expansion projects. While we remain fully committed to developing our highly attractive portfolio of expansion opportunities, each of which is expected to be amongst the lowest cost lithium operations globally when completed, we will seek to do so on a timeline that is supported by both the market and our customers."

Arcadium Lithium intends to pause current investment in its 40,000 metric ton (LCE) spodumene Galaxy project in Canada (formerly "James Bay") and is exploring the opportunity to bring in a partner that is interested in providing capital for the project in return for a long-term strategic investment. The pause in spending will be structured to minimize both cost and timing disruption when the project is ultimately resumed.

Additionally, Arcadium Lithium is revisiting the sequencing of its combined 25,000 metric ton lithium carbonate projects at the Salar del Hombre Muerto in Argentina. Rather than execute Fénix Phase 1B and Sal de Vida Stage 1 simultaneously as previously announced, the projects will now be completed sequentially.

As a result of these actions, the Company will immediately reduce its capital spending and plans to spend approximately $500 million less over the next 24 months.

The Company has no plans to alter the development of Nemaska Lithium, a 32,000 metric ton integrated spodumene to hydroxide project in Canada.