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Highlights
- Arcadium is an international lithium chemicals producer, and Mineral Resources is a diversified resource entity with focus in mining services, lithium energy, iron ore and energy across Western Australia
- In 1QFY24, Arcadium recorded a 3.04% YoY increase in revenue to USD 261.20 million
- Mineral resource witnessed around 7% YoY revenue growth, reaching AUD 2,515 million
Arcadium Lithium PLC (ASX:LTM) is an international lithium chemicals producer with specialisation across lithium extraction processes. The company has operations globally with projects and facilities in the United States, the United Kingdom, Japan, China, Canada, Australia and Argentina. Mineral Resources Ltd (ASX:MIN) is a diversified resource entity with focus on mining services, lithium energy, iron ore and energy across Western Australia. The company provides safe, low-cost, high-quality mining, mining infrastructure and mining construction in Australia.
Highlights of latest financial performance
In the first quarter of fiscal year 2024 (1QFY24), the company achieved a 3.04% YoY increase in revenue to USD 261.20 million, alongside an 82.7% YoY decrease in net income to USD 19.90 million. During this period, the company achieved average realised pricing of over USD 20,000 per metric tonne for combined hydroxide and carbonate volumes.
Historical financial trend
Outlook
In FY24, the company anticipates a 40% increase in sales volume of combined lithium hydroxide and lithium carbonate. Additionally, it expects to achieve USD 60 to 80 million in realised synergies and cost savings in FY24.
The company is undertaking several capacity expansions in Canada and Argentina, with an investment of approximately USD 1.6 billion in growth capital from 2024 to 2026 to fund these expansions. By FY26, these expansions are expected to create a pathway to 170,000 LCEs of capacity. Furthermore, the company has implemented cost-control measures, including a reduction in the global workforce in 1QFY24.
Share performance of LTM
LTM shares closed 1.23% higher at AUD 4.920 apiece on 3 July 2024. In the last six months, LTM’s share price has declined by 54.74%, and in the last three months, it has dropped by 22.64%.
The 52-week high of LTM is AUD 11.57, recorded on 29 December 2023, and the 52-week low is AUD 4.710, recorded on 2 July 2024.
LTM Daily Technical Chart, Source: EODHD/Others
Mineral Resources Ltd (ASX:MIN)
Highlights of latest financial performance
In the first half of FY24 (1HFY24), the company experienced approximately 7% YoY revenue growth, reaching AUD 2,515 million. This increase was driven by lower lithium prices, increased lithium sales volumes and prices of iron ore. However, underlying EBITDA decreased by 28% YoY to AUD 675 million, and underlying NPAT declined by 49% YoY to AUD 196 million.
In the third quarter of FY24 (3QFY24), spodumene concentrate prices rose, with the company shipping 22,000 dry metric tonnes in March 2024 at USD 1,300 per tonne.
Outlook
Mining services are anticipated to improve margins and volumes through long-life, high-quality projects.
The company targets 876 contracted tonnes of production by FY28. In the near term, lithium production is expected to grow with modest capital requirements, reaching a projected 1,496kt of SC6 equivalent by FY28.
Iron ore production is also expected to increase, with projections indicating it will reach 92 million wmt by FY28.
Share performance of MIN
MIN shares closed 3.11% higher at AUD 55.33 apiece on 3 July 2024. In the last one year, MIN’s share price has declined by 24.05%, and in the last three months, it has dropped by 21.37%.
The 52-week high of MIN is AUD 79.76, recorded on 22 May 2024, and the 52-week low is AUD 52.52, recorded on 22 January 2024.
MIN 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 3 July 2024. The reference data in this report has been partly sourced from EODHD/Others.
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