Arcadium Lithium closes 2023 on a high
After completing its Allkem and Livent’s merger last month, the combined entity – Arcadium Lithium – has announced it accrued $2 billion in pro-forma 2023 revenue.
As of December 31 2023, the lithium giant had a combined consolidated cash balance of $892 million and net debt totalling $297 million.
“We are excited to officially begin operating as Arcadium Lithium, leveraging the strengths of two highly complementary organisations and continuing to grow as one of the leading producers of lithium chemicals globally,” Arcadium Lithium president and chief executive officer Paul Graves said.
“While lithium and energy storage market dynamics have changed considerably since our merger announcement in May, the underlying strategic merits of the transaction remain compelling.
“As a larger, more diversified and vertically integrated company, we are better positioned to meet the needs of our customers and have even greater flexibility to take advantage of opportunities available throughout market cycles.”
The Mount Cattlin mine in Ravensthorpe, Western Australia brought in $46 million in spodumene revenue during the December 2023 quarter, leading to the mine delivering $571 million in total revenue for 2023.
Mount Cattlin produced 69,789 metric tonnes of spodumene concentrate during the quarter at 5.4 per cent lithium oxide grade, bringing the operation’s 2023 production total to 239,312 metric tonnes.
Over 60,000 metric tonnes of spodumene concentrate were sold at an SC6 equivalent price of $US850 per dry metric tonne.
“Strong recovery of 72 per cent demonstrates favourable grade and mineralisation as mining continues in the main part of the orebody,” Arcadium Lithium said.
“Realised pricing during the quarter was impacted by a shift to forward looking reference price mechanisms and the timing of shipments all occurring in the second half of the quarter.”
Considering the lithium downturn, Arcadium Lithium will lower near-term capital spending commitments as it evaluates ways to streamline its project pipeline to deliver additional volumes within customer timeframes.
“It is clear that very few lithium expansion projects make economic sense at current market prices, and the longer prices stay near these levels the greater the impact will be on future supply shortfalls,” Graves said.
Arcadium Lithium expects to spend $450–$625 million in growth capital spending in 2024, with an additional $100–$125 million on maintenance capital spending in store.
Source: https://www.australianmining.com.au/arcadium-lithium-closes-2023-on-a-high/
