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Highlights
- Arcadium Lithium is a global lithium chemicals producer with capabilities across lithium extraction processes
- In 1QFY24, LTM’s revenue grew by 3.04% YoY and net income fell by 82.7% YoY
- Vanguard Investments Australia Ltd. has the highest stake in the company with a shareholding of 2.32%
Arcadium Lithium PLC (ASX: LTM) is an ASX-listed international lithium chemicals producer with capabilities across lithium extraction processes. The company has global presence with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom, and the United States.
In the first quarter of the financial year 2024 (1QFY24), revenue of the company increased by 3.04% YoY to USD 261.20 million. However, net income declined by 82.7% YoY to USD 19.90 million. The period saw fall in profit because of the integration costs associated with Allkem Livent Merger and increased severance costs. Additionally, gross margin fell in 1QFY24, due to lower pricing across legacy Livent products.
The top 10 shareholders of LTM
The top 10 shareholders of LTM have around 9.70% shareholding in the company, while the top four have 6.50% shareholding. Vanguard Investments Australia Ltd. and Mirae Asset Global Investments (USA) LLC have the highest stake in the company with a shareholding of 2.32% and 1.91%, respectively.
Recent business update
Through an ASX update dated 4 January 2024, the company shared that LTM was the successor company to Livent under the Allkem Livent Merger which closed on 4 January 2024. After the closing of the Allkem Livent Merger, it presently operates as one reportable segment based on the commodities among the services and products. Further, the company is engaged in discovering and implementing commercial, cost savings and operational synergies.
Outlook
In FY24, LTM targets 40% growth in combined lithium hydroxide and lithium carbonate sales volume. The company is conducting several capacity expansion initiatives in Canada and Argentina. To fund these expansion initiatives, LTM expects to incur spending of around USD 1.6 billion in growth capital in three years from 2024 to 2026.
The company is on track to deliver USD 60 – 80 million of cost savings/ realized synergies in FY24, and by FY26, several expansion are expected to create a path to 170,000 LCEs of capacity or more than four times production levels in 2023.
Share performance of LTM
LTM shares closed 0.28% lower at AUD 7.12 apiece on 22 May 2024. LTM’s share price has declined by 36.31% on a year-to-date basis and has increased by 20.40% in the last one month.
The 52-week high of LTM is AUD 11.57, recorded on 29 December 2024, while the 52-week low is AUD 5.76, recorded on 19 April 2024.
LTM Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 22 May 2024. The reference data in this report has been partly sourced from EODHD/Others.
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