Arcadium Lithium reported annual revenue exceeding US$1 billion, with significant production in Argentina through its Olaroz operations. The company is moving forward with its acquisition by Rio Tinto, expected to close in March 2025.
By Panorama Minero
Revenue for the fourth quarter totaled US$289 million, with a GAAP net loss of US$14.2 million (1 cent per diluted share). Adjusted EBITDA reached US$73.7 million, while adjusted earnings per diluted share stood at 1 cent.
The increase in adjusted EBITDA compared to the third quarter was driven by higher sales volumes and lower costs, partially offset by lower average realized prices. Total sales rose 56% in lithium carbonate equivalent (LCE) terms compared to the third quarter but remained flat year-over-year.
The average realized price for lithium hydroxide and carbonate stood at US$15,700 per metric ton, down from US$16,200 in the previous quarter. Most lithium products experienced price declines, except lithium hydroxide, which remained stable due to customer mix and long-term commercial agreements.
Full-Year 2024 Results
Annual revenue reached US$1.0078 billion, with GAAP net income of US$103.2 million (9 cents per diluted share). Adjusted EBITDA for the year was US$324.5 million, while adjusted earnings per diluted share stood at 14 cents.
Total annual sales declined slightly in LCE terms, as higher combined lithium carbonate and hydroxide volumes were offset by lower spodumene sales due to reduced production at Mt Cattlin. Compared to 2023, average realized prices fell across all lithium products.
Rio Tinto Transaction
Arcadium Lithium agreed to be acquired by Rio Tinto in an all-cash transaction at US$5.85 per share. Shareholder approval was obtained in December 2024, followed by regulatory clearances in February 2025. The transaction is expected to close on March 6, 2025, subject to approval by the Royal Court of Jersey and other customary closing conditions. In light of the pending acquisition, the company announced it will not hold an earnings call or provide guidance for 2025.
Operations and Outlook
Arcadium Lithium maintained a disciplined operational strategy and flexibility amid challenging market conditions. Its long-term contract strategy helped mitigate the impact of declining lithium prices. The combination with Rio Tinto is expected to accelerate the company’s growth and expansion.
