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, /PRNewswire/ -- Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium" or the "Company") today reported results for the fourth quarter and full year of 2024.
As a result of its pending acquisition by Rio Tinto, announced on October 9, 2024 (the "Transaction"), and as is customary during such transactions, Arcadium Lithium will not hold an earnings conference call in connection with its fourth quarter and full year financial results. For the same reason, the Company withdrew its prior operating and financial guidance and will not be introducing guidance for 2025.
For further detail and discussion of Arcadium Lithium's results for the fourth quarter and full year of 2024, please refer to Arcadium Lithium's Annual Report on Form 10-K for the year ended December 31, 2024, being filed today with the Securities and Exchange Commission (the "SEC").
Fourth Quarter and Full Year Highlights
Fourth quarter revenue was $289.0 million and reported attributable GAAP net loss was $14.2 million, or 1 cent per diluted share. Adjusted EBITDA1 was $73.7 million and adjusted earnings per diluted share2 was 1 cent. The increase in Adjusted EBITDA1 compared to the third quarter was largely attributable to higher volumes across all lithium products and reduced costs, partially offset by lower average realized pricing.
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Fourth quarter total volumes sold were 56% higher on an LCE3 basis versus the third quarter, but roughly flat versus the prior year, as customers close out their contractual commitments and demand needs during the typically active year-end in key end markets.
The Company realized average pricing of $15,700 per product metric ton for combined lithium hydroxide and carbonate volumes in the fourth quarter, compared to $16,200 in the third quarter. Average realized pricing declined across most lithium products, with the exception of spodumene, due to weaker prevailing market prices. However, lithium hydroxide pricing was roughly flat quarter-over-quarter, supported by customer mix and the benefit of existing long term commercial agreements.
| Q4 2024 | Revenue (M)
| Volume | Unit | Price |
| Lithium Hydroxide and
Lithium Carbonate4 | $211.1 | ~13,4505 | product metric ton | $15,700 / product MT |
| Butyllithium & Other Lithium Specialties | $38.9 | ~470 | LCE3 | $82,800 / LCE |
| Spodumene Concentrate | $39.0 | ~54,100 | dry metric ton | $721 / 5.4% dmt (~$810 SC6 equivalent) |
For the full year, Arcadium Lithium reported revenue of $1,007.8 million. Attributable GAAP net income was $103.2 million, or 9 cents per diluted share. Full year Adjusted EBITDA1 was $324.5 million and adjusted earnings per share were 14 cents per diluted share2. Full year total volumes sold were slightly lower on an LCE3 basis, with higher combined lithium carbonate and hydroxide sales more than offset by lower spodumene sales due to reduced production at Mt Cattlin. Average realized pricing over the full year declined across all lithium products in light of a weaker market environment compared to 2023.
| FY 2024 | Revenue (M) | Volume | Unit | Price |
| Lithium Hydroxide and Lithium Carbonate4 | $728.9 | ~42,3005 | product metric ton | $17,200 / product MT |
| Butyllithium & Other Lithium Specialties | $169.2 | ~1,860 | LCE3 | $91,000 / LCE |
| Spodumene Concentrate | $109.7 | ~140,000 | dry metric ton | $784 / 5.4% dmt (~$880 SC6 equivalent) |
"2024 was highlighted by a focus on executing key initiatives within our control while navigating challenging broader market conditions. This included exercising cost and operational discipline while maintaining the flexibility to adapt to a quickly changing market environment," said Paul Graves, president and chief executive officer of Arcadium Lithium. "Our strong customer relationships and commercial strategy of securing long term contracts helped us to achieve higher realized pricing during the year than we would have under a fully market-based pricing approach. Additionally, at our Investor Day in September we outlined an attractive plan to deliver significant growth over the coming years, leveraging the size and quality of our portfolio of assets and expansion projects. We believe the pending combination with Rio Tinto will give us the ability to accelerate and expand this growth opportunity for the benefit of our customers, our employees, and the communities in which we operate."
| _______________________ |
| 1 Reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income attributable to Arcadium Lithium plc, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. |
| 2 Corresponds to Diluted adjusted after-tax earnings per share in the accompanying financial tables. Reconciliation of Diluted adjusted after-tax earnings per share, a non-GAAP measure, to Diluted earnings per ordinary share (GAAP), the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. |
| 3 Lithium Carbonate Equivalents. |
| 4 Includes 100% of Olaroz in which Arcadium Lithium has current economic interest of 66.5%. |
| 5 Excludes lithium carbonate by-product. |
Rio Tinto Transaction Timeline
On October 9, 2024, a definitive agreement (the "Transaction Agreement") was announced under which Rio Tinto will acquire Arcadium Lithium in an all-cash transaction for US$5.85 per share.
Requisite Arcadium Lithium shareholder approval for the Transaction was obtained at special meetings held on December 23, 2024.
As announced on February 13, 2025, the Company has received all required pre-closing regulatory approvals in connection with the proposed acquisition. This includes merger control clearance being satisfied or waived in Australia, Canada, China, Japan, South Korea, the United Kingdom and the United States (Hart-Scott-Rodino Antitrust Improvements Act of 1976), as well as investment screening approval being satisfied in Australia, Canada, Italy, the United Kingdom and the United States (CFIUS).
Arcadium Lithium and Rio Tinto are now targeting closing of the Transaction on March 6, 2025. The Transaction remains subject to Court Order by the Royal Court of Jersey and other customary closing conditions. Arcadium Lithium cannot assure completion of the Transaction by any particular date, if at all, or that if completed, it will be completed on the terms set forth in the Transaction Agreement.
Full details of the terms and conditions of the Transaction are set out in the Transaction Agreement, which may be obtained, free of charge, on the SEC's website (http://www.sec.gov).
Arcadium Lithium Contacts
Investors:
Daniel Rosen +1 215 299 6208
Phoebe Lee +61 413 557 780
Media:
Karen Vizental +54 9 114 414 4702
Supplemental Information
In this press release, Arcadium Lithium uses the financial measures Adjusted EBITDA and Diluted adjusted after-tax earnings per share. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.arcadiumlithium.com and elsewhere in this press release or the financial tables that accompany this press release.
About Arcadium Lithium
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States. For more information, please visit us at www.ArcadiumLithium.com.
Important Information and Legal Disclaimer:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the completion of the Transaction on anticipated terms and timing, including obtaining required shareholder and regulatory approvals, and the satisfaction of other conditions to the completion of the Transaction; potential litigation relating to the Transaction that could be instituted by or against Arcadium Lithium or its affiliates, directors or officers, including the effects of any outcomes related thereto; the risk that disruptions from the Transaction will harm Arcadium Lithium's business, including current plans and operations; the ability of Arcadium Lithium to retain and hire key personnel; potential adverse reactions or changes to business or governmental relationships resulting from the announcement or completion of the Transaction; certain restrictions during the pendency of the Transaction that may impact Arcadium Lithium's ability to pursue certain business opportunities or strategic transactions; significant transaction costs associated with the Transaction; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the occurrence of any event, change or other circumstance that could give rise to the termination of the Transaction, including in circumstances requiring Arcadium Lithium to pay a termination fee or other expenses; competitive responses to the Transaction; the supply and demand in the market for our products as well as pricing for lithium and high-performance lithium compounds; our ability to realize the anticipated benefits of the integration of the businesses of Livent and Allkem or of any future acquisitions; our ability to acquire or develop additional reserves that are economically viable; the existence, availability and profitability of mineral resources and mineral and ore reserves; the success of our production expansion efforts, research and development efforts and the development of our facilities; our ability to retain existing customers; the competition that we face in our business; the development and adoption of new battery technologies; additional funding or capital that may be required for our operations and expansion plans; political, financial and operational risks that our lithium extraction and production operations, particularly in Argentina, expose us to; physical and other risks that our operations and suppliers are subject to; our ability to satisfy customer qualification processes or customer or government quality standards; global economic conditions, including inflation, fluctuations in the price of energy and certain raw materials; the ability of our joint ventures, affiliated entities and contract manufacturers to operate according to their business plans and to fulfill their obligations; severe weather events and the effects of climate change; extensive and dynamic environmental and other laws and regulations; our ability to obtain and comply with required licenses, permits and other approvals; and other factors described under the caption entitled "Risk Factors" in Arcadium Lithium's 2024 Form 10-K filed with the SEC on February 27, 2025, as well as Arcadium Lithium's other SEC filings and public communications. Although Arcadium Lithium believes the expectations reflected in the forward-looking statements are reasonable, Arcadium Lithium cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Arcadium Lithium nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Arcadium Lithium is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.
| ARCADIUM LITHIUM PLC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data) | |||||||
| Three Months Ended | Twelve Months Ended | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 (1) | 2024 | 2023 (1) | ||||
| Revenue | $ 289.0 | $ 181.8 | $ 1,007.8 | $ 882.5 | |||
| Cost of sales | 243.4 | 85.7 | 719.2 | 344.1 | |||
| Gross margin | 45.6 | 96.1 | 288.6 | 538.4 | |||
| Impairment charges | - | - | 51.7 | - | |||
| Selling, general and administrative expenses | 31.7 | 16.1 | 126.8 | 63.2 | |||
| Research and development expenses | 2.6 | 2.5 | 6.4 | 5.8 | |||
| Restructuring and other charges | 45.8 | 21.9 | 157.2 | 56.9 | |||
| Total costs and expenses | 323.5 | 126.2 | 1,061.3 | 470.0 | |||
| (Loss)/income from operations before equity in net loss of unconsolidated affiliates, interest income, net, loss on debt extinguishment and other (gains)/losses | (34.5) | 55.6 | (53.5) | 412.5 | |||
| Equity in net loss of unconsolidated affiliates | 1.6 | 1.1 | 7.5 | 23.1 | |||
| Interest income, net | (1.5) | - | (20.3) | - | |||
| Loss on debt extinguishment | - | - | 1.1 | - | |||
| Other (gains)/losses | (50.4) | 5.7 | (252.4) | 0.4 | |||
| Income from operations before income taxes | 15.8 | 48.8 | 210.6 | 389.0 | |||
| Income tax expense | 23.2 | 11.1 | 78.9 | 58.9 | |||
| Net (loss)/income | $ (7.4) | $ 37.7 | $ 131.7 | $ 330.1 | |||
| Net income attributable to noncontrolling interests | 6.8 | - | 28.5 | - | |||
| Net (loss)/income attributable to Arcadium Lithium plc | $ (14.2) | $ 37.7 | $ 103.2 | $ 330.1 | |||
| Basic (loss)/earnings per ordinary share | $ (0.01) | $ 0.09 | $ 0.10 | $ 0.76 | |||
| Diluted (loss)/earnings per ordinary share | $ (0.01) | $ 0.07 | $ 0.09 | $ 0.66 | |||
| Weighted average ordinary shares outstanding - basic | 1,075.5 | 432.6 | 1,069.8 | 432.4 | |||
| Weighted average ordinary shares outstanding - diluted | 1,075.5 | 503.0 | 1,138.7 | 503.4 | |||
| _______________________ | |
| 1. | For the three and twelve months ended December 31, 2023, basic and diluted earnings per ordinary share and weighted average ordinary shares outstanding - basic and diluted amounts represent predecessor Livent and have been adjusted to reflect the 2.406 Exchange Ratio. Represents the results of predecessor Livent's operations for three and twelve months ended December 31, 2023 which do not include the operations of Allkem. |
| ARCADIUM LITHIUM PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF NET (LOSS)/ INCOME ATTRIBUTABLE TO ARCADIUM LITHIUM PLC TO ADJUSTED EBITDA (NON-GAAP) (Unaudited) | |||||||
| Three Months Ended | Twelve Months Ended | ||||||
| December 31, | December 31, | ||||||
| (In Millions) | 2024 | 2023 (1) | 2024 | 2023 (1) | |||
| Net (loss)/income attributable to Arcadium Lithium plc | $ (14.2) | $ 37.7 | $ 103.2 | $ 330.1 | |||
| Add back: | |||||||
| Net income attributable to noncontrolling interests | 6.8 | - | 28.5 | - | |||
| Interest income, net | (1.5) | - | (20.3) | - | |||
| Income tax expense | 23.2 | 11.1 | 78.9 | 58.9 | |||
| Depreciation and amortization | 45.9 | 8.1 | 113.7 | 29.6 | |||
| EBITDA (Non-GAAP) (2) | 60.2 | 56.9 | 304.0 | 418.6 | |||
| Add back: | |||||||
| Argentina remeasurement (gains)/losses (a) | (44.7) | 53.4 | (171.0) | 73.9 | |||
| Impairment charges (b) | - | - | 51.7 | - | |||
| Restructuring and other charges (c) | 45.8 | 21.9 | 157.2 | 56.9 | |||
| Loss on debt extinguishment (d) | - | - | 1.1 | - | |||
| Inventory step-up, Allkem Livent Merger (e) | 11.0 | - | 32.0 | - | |||
| Other losses/(gains) (f) | 1.4 | 0.9 | (5.0) | 16.7 | |||
| Subtract: | |||||||
| Blue Chip Swap gain (g) | - | (42.2) | (45.2) | (63.6) | |||
| Argentina interest income (h) | - | - | (0.3) | - | |||
| Adjusted EBITDA (Non-GAAP) (2) | $ 73.7 | $ 90.9 | $ 324.5 | $ 502.5 | |||
| ___________________ | |
| 1. | Represents the results of predecessor Livent's operations for three and twelve months ended December 31, 2023 which do not include the operations of Allkem. |
| 2. | We evaluate operating performance using certain Non-GAAP measures such as EBITDA, which we define as net income attributable to Arcadium Lithium plc plus noncontrolling interests, interest expense, net, income tax expense and depreciation and amortization; and Adjusted EBITDA, which we define as EBITDA adjusted for Argentina remeasurement (gains)/losses, impairment charges, restructuring and other charges, Allkem Livent Merger inventory step-up, certain Blue Chip Swap gains and other losses/(gains). Management believes the use of these Non-GAAP measures allows management and investors to compare more easily the financial performance of its underlying business from period to period. The Non-GAAP information provided may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating EBITDA and Adjusted EBITDA. These measures should not be considered as a substitute for net income or other measures of performance or liquidity reported in accordance with U.S. GAAP. The above table reconciles EBITDA and Adjusted EBITDA from net income attributable to Arcadium Lithium plc. |
| a. | Represents impact of currency fluctuations primarily on deferred income tax assets and liabilities. Also includes impact of currency fluctuations on other tax assets and liabilities and on long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement (gains)/losses are included within Other (gains)/losses in our consolidated statements of operations but are excluded from our calculation of Adjusted EBITDA because of: i.) their nature as income tax related; ii.) their association with long-term capital projects which will not be operational until future periods; or iii.) the severity of the devaluations and their immediate impact on our operations in the country. |
| b. | In the third quarter of 2024, the Company's plan to place its Mt Cattlin spodumene operation in Western Australia into care and maintenance resulted in a non-cash charge of $51.7 million for the twelve months ended December 31, 2024, and was recorded to Impairment charges in the consolidated statement of operations. The impairment charges are excluded from our calculation of Adjusted EBITDA because the charges are nonrecurring. |
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