Arcadium Lithium, the multinational lithium company, announced its financial results for the first quarter of 2024, highlighting solid profitability driven by average prices for lithium hydroxide and carbonate above US$20,000 per metric ton. The company anticipates cost synergies and savings between US$60 and US$80 million for the year and continues to advance towards a capacity of 170,000 LCE by 2026.
By Panorama Minero
First Quarter Results
In its first quarter as a combined company following the merger of Allkem and Livent in early 2024, Arcadium Lithium reported revenues of US$261 million and adjusted EBITDA of US$108.8 million.
The company's President and CEO, Paul Graves, commented, "Arcadium Lithium completed its first quarter as a combined company, and we have taken the first steps to realize the significant value from this combination. The average realized price for our sales of hydroxide and carbonate exceeded US$20,000 per metric ton, thanks to our long-term customer relationships and our wide range of high-quality lithium products."
Production and Outlook for 2024
Combined sales in the first quarter decreased compared to the previous quarter, primarily due to a drop in spodumene sales caused by lower production at Mt. Cattlin in Australia. However, prices were slightly higher for most lithium products due to an initial improvement in market conditions, though still below the levels of early 2023.
Arcadium Lithium maintains its forecast for achieving cost synergies and savings between US$60 and 80 million in 2024, with the majority of these savings expected throughout the rest of the year. The company has already taken significant measures to reduce costs, including a reduction in its global workforce by approximately 11% during the first quarter, as highlighted in a statement.
Capacity Expansions
Regarding ongoing expansions at its projects, Graves added, "The company is ramping up production in 2024 as planned, while also investing in the next series of expansions. By the end of 2026, we expect to reach a total capacity of 170,000 LCE, more than four times the 2023 production level. This growth trajectory uniquely positions us in the industry."
In Argentina, the 10,000-metric-ton expansion at Fénix, in Catamarca, is fully commissioned and producing near its maximum capacity. The 25,000-metric-ton expansion at Olaroz, in Jujuy, is also in production, though at a slower pace due to the longer extraction process from evaporation ponds.
To fund these expansions in Argentina and those of its projects in Canada, Arcadium Lithium plans to invest approximately US$1.6 billion in growth capital between 2024 and 2026. The company is confident in its ability to complete these projects and will adjust its plans according to market conditions. “With available funding sources, including a US$500 million credit line that can be expanded up to US$700 million, the company is well-positioned for its next growth cycle.”
Join our mining community!
Subscribe to our newsletter for exclusive news, insights, and updates on the mining industry and Panorama Minero's latest initiatives.
The Event of the Year in Lithium: A Meeting of Industry Leaders on October 9 and 10
Jujuy will take center stage at the 13th edition of the International Seminar: Lithium in South America, the pioneering event in the lithium sector, organized by the specialized media Panorama Minero since 2011. As in previous years, it is expected to gather thousands of representatives linked to one of the most attractive segments of both Argentine and global mining.
Mining Exports Represented 9.1% of Total Argentine Exports
Mineral exports during August 2024 reached US$550 million, accumulating a total of US$2.736 billion in the first eight months of the year. This information comes from a recent report by the National Mining Secretariat, presented at the end of September.
San Juan: Challenger Gold Targets Gold Production at Hualilán in Q2 2025
The company aims to accelerate the development of the deposit located in San Juan to take advantage of the rising gold price environment.
Conclusions from LME Week: Lithium and Copper, Key to Promoting Argentina’s Mining Sector Abroad
An important delegation of national and provincial officials, along with private sector representatives from Argentina, participated in the London Metal Exchange Week.
GEMERA Announces New Board of Directors
The Group of Mining Exploration Companies of the Argentine Republic (GEMERA) has announced the new formation of its Board of Directors, which will lead the organization in its mission to promote the sustainable development of the mining industry in the country.
Salta to Review Taca Taca's Environmental Impact Assessment Ahead of Construction
The province of Salta will host a technical and scientific meeting and joint inspection regarding the Taca Taca Project, one of Argentina's five major copper initiatives. Various departments within the Ministry of Production and Sustainable Development, together with the Argentine Geological and Mining Service (SEGEMAR), will assess the project's Environmental and Social Impact Assessment (ESIA), while also conducting on-site oversight and monitoring activities.
NGEx Announces Exploration Plan for Lunahuasi
NGEx Minerals Ltd. announced its exploration plan and strategy for the largest drill program to date at the Lunahuasi high-grade copper-gold-silver project in San Juan province. The field team is on site preparing for mobilization of drill rigs with drilling expected to start in early October.
Salta: Hanaq to Launch a Pilot Plant of 3,000 Tons of Lithium
Hanaq Group has achieved a significant milestone in its Doncella lithium project, located in the Arizaro Salt Flat, in Salta province, by obtaining the Environmental Impact Statement (EIA) which will allow the construction of a 3,000-ton-per-year pilot plant for lithium carbonate. This progress came after successfully completing the Free and Informed Public Consultation (CPLI) and the Public Hearing in the local community of Tolar Grande.
Gold Price Hits a New All-Time High
The gold market continues to show strong momentum, reaching a new all-time high this week. The spot price of the yellow metal surpassed US$2,660 per ounce for the first time during the September 24th session, driven by a combination of economic and geopolitical factors that continue to boost its demand as a safe-haven asset.
Lithium: Arcadium Lithium Announces Ambitious Expansion Plan in Argentina
Arcadium Lithium, one of the world's leading lithium producers, has unveiled a strategic plan that promises significant growth in the coming years, with Argentina positioned as a key pillar. The company expects to double its sales volumes by 2028 and achieve an adjusted EBITDA of US$1.3 billion, driven by strong global demand for lithium. Paul Graves, the company’s President and CEO, highlighted that the combination of a vertically integrated operational network and a disciplined commercial strategy will maximize the value of each unit of lithium delivered to its customers.
Argentina: For Every 100 Dollars Exported in the Year, the Mining Industry Imported 32 Dollars
In July, as detailed in a recent report released by the Secretariat of Mining, companies within Argentina's mining project portfolio achieved a trade surplus of US$134 million, representing a year-on-year decline of 43.3%. This result reflects mining exports totaling US$226 million against imports of US$91 million. As such, the exports of these companies were more than double their imports. In the first seven months of 2024, the cumulative trade balance of these companies showed a surplus of US$1.434 billion, although this represents a 14.9% decrease compared to the same period of the previous year.
Argentina Lithium & Energy Secures Major Lithium Properties in Argentina
The Canadian company, a member of the Grosso Group, has successfully completed the exercise of option agreements for nearly 25,400 hectares of lithium-rich land across its Rincon West, Pocitos, and Antofalla North Projects, in Argentina. This strategic move underscores the Company’s commitment to expanding its lithium portfolio in the region.