Shares of Arcadium Lithium plc (NYSE: ALTM) have seen a notable uptick in the current trading session following the release of the company’s financial results for the second quarter of 2024. At the latest update, ALTM stock was trading 5.30% higher at $2.78 on US charts.
Quarterly Financial Performance
For the second quarter, Arcadium Lithium reported revenues of $255 million. ALTM made $85.7 million in GAAP net income, or 7 cents per diluted share. For the period, adjusted profits per diluted share were 5 cents, and adjusted EBITDA was $99.1 million. For combined lithium hydroxide and carbonate products, the average realized price per metric ton was $17,200.
Operational Highlights and Strategic Focus
The total volumes for the second quarter showed a modest increase compared to the first quarter. This rise was attributed to higher sales of carbonate and hydroxide, which were partially offset by reduced spodumene sales due to decreased production at Mt. Cattlin.
Although the average realized price for spodumene increased sequentially, prices for other products saw a decline. This downturn was due to lower market prices for lithium chemicals, the delayed impact of price indices on certain carbonate and hydroxide volumes, and changes in the product and customer mix.
Arcadium Lithium remains committed to leveraging its low-cost, high-quality operational base and securing long-term contracts with strategic customers to navigate market fluctuations. This strategy, similar to the previous quarter, has enabled the company to achieve higher realized pricing and maintain strong underlying profitability.
Cost Reduction and Future Outlook
Looking ahead, Arcadium Lithium anticipates achieving cost savings in 2024 at the upper end of its guidance range of $60 to 80 million. These savings are attributable to organizational restructuring, operational efficiencies, and the elimination of third-party services.
Notably, savings in operating and logistics, particularly related to raw materials, energy, and transportation in Argentina, have been realized through renegotiated supplier contracts. In response to evolving market conditions and progress since the merger, the company is accelerating its cost reduction initiatives.
Arcadium Lithium had previously projected annual cost savings of $125 million by the third year post-merger and has now commenced a program to expedite these savings. Furthermore, Arcadium Lithium has confirmed that there will be no changes to the development of the Nemaska Lithium project, a 32,000 metric ton integrated spodumene to hydroxide venture in Canada.