AUS
NZ
UK
CA
USA
IND
Highlights
- Arcadium Lithium is an ASX-listed lithium chemicals production firm
- In 2QFY24, LTM’s revenue increased by 7.93% YoY to USD 254.50 million
- Mirae Asset Global Investments (USA) LLC has the maximum stake in the firm with a shareholding of nearly 2.96%
Arcadium Lithium plc (ASX:LTM) is an international producer of lithium chemicals and has capabilities across lithium extraction processes. The newly formed company got listed on the ASX on 22 December 2023. LTM has operations across the globe with projects and facilities located in the United States, the UK, Japan, China, Canada, Australia and Argentina.
In the second quarter of the financial year 2024 (2QFY24), the company reported a 7.93% year-on-year increase in revenue, reaching USD 254.50 million. in 2QFY24, restructuring and other charges rose by 10.96% YoY to USD 21.90 million, while net income grew by 5% YoY to USD 94.50 million.
During this period, the average realised pricing for lithium hydroxide and carbonate was USD 17,200 per product metric.
In FY24, the company targets cost saving of USD 60-80 million.
Top 10 shareholders of LTM
The top 10 shareholders of LTM have around 9.54% shareholding in the firm, while the top four have 6.80% shareholding. Mirae Asset Global Investments (USA) LLC and Vanguard Investments Australia Ltd have the highest stakes in the firm with a shareholding of 2.96% and 1.65%, respectively.
Recent business update
Through an ASX update dated 2 August 2024, the company notified about the acquisition of the Li-metal Corp’s lithium metal division in an USD 11 million deal. The deal covers physical assts, intellectual property and a pilot production facility in Canada. The company will utilise the lithium metal to produce specialty products like LIOVIX and high purity lithium metal (HPM). LIOVIX is a proprietary printable lithium metal formulation for various battery applications.
Outlook
For its combined business, the company expects higher sales volumes compared to the previous year and foresees new production capacity expansion in the second half of FY24. A 25% increase in lithium hydroxide and carbonate volumes is projected for both 2024 and 2025.
Given the current conditions in the lithium market, LTM has decided to delay investment in two of its four ongoing expansion projects. Despite this, the company remains optimistic about long-term lithium demand and is committed to advancing its expansion plans in line with customer and market needs.
Over the next 24 months, LTM aims to reduce capital spending by approximately USD 500 million.
Share performance of LTM
LTM shares closed 11.45% higher at AUD 3.70 apiece on 11 September 2024. In the past one month, LTM’s share price has dropped by 12.94%, while on a year-to-date basis, it has declined by 66.99%.
52-week high of LTM is AUD 11.57, recorded on 29 December 2023, while the 52-week low is AUD 3.30, recorded on 10 September 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 11 September 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.
