Arcadium Lithium Announces Fourth Quarter and Full-Year 2024 Results

Arcadium Lithium plc announced its fourth-quarter and full-year 2024 financial results but will not hold an earnings conference call due to its pending acquisition by Rio Tinto, announced on October 9, 2024. In line with customary practices during such transactions, the company has also withdrawn its prior operating and financial guidance and will not provide guidance for 2025.

For further detail and discussion of Arcadium Lithium’s results for the fourth quarter and full year of 2024, please refer to Arcadium Lithium’s Annual Report on Form 10-K for the year ended December 31, 2024, being filed today with the Securities and Exchange Commission (the “SEC”).

Fourth Quarter and Full Year Highlights

Fourth quarter revenue was $289.0 million  and reported attributable GAAP net loss was $14.2 million, or 1 cent per diluted share. Adjusted EBITDA1 was $73.7 million and adjusted earnings per diluted share2 was 1 cent. The increase in Adjusted EBITDA1 compared to the third quarter was largely attributable to higher volumes across all lithium products and reduced costs, partially offset by lower average realized pricing.

Fourth quarter total volumes sold were 56% higher on an LCE3 basis versus the third quarter, but roughly flat versus the prior year, as customers close out their contractual commitments and demand needs during the typically active year-end in key end markets.

The Company realized average pricing of $15,700 per product metric ton for combined lithium hydroxide and carbonate volumes in the fourth quarter, compared to $16,200 in the third quarter. Average realized pricing declined across most lithium products, with the exception of spodumene, due to weaker prevailing market prices. However, lithium hydroxide pricing was roughly flat quarter-over-quarter, supported by customer mix and the benefit of existing long term commercial agreements.

For the full year, Arcadium Lithium reported revenue of $1,007.8 million. Attributable GAAP net income was $103.2 million, or 9 cents per diluted share. Full year Adjusted EBITDA1 was $324.5 million and adjusted earnings per share were 14 cents per diluted share2. Full year total volumes sold were slightly lower on an LCE3 basis, with higher combined lithium carbonate and hydroxide sales more than offset by lower spodumene sales due to reduced production at Mt Cattlin. Average realized pricing over the full year declined across all lithium products in light of a weaker market environment compared to 2023.

“2024 was highlighted by a focus on executing key initiatives within our control while navigating challenging broader market conditions. This included exercising cost and operational discipline while maintaining the flexibility to adapt to a quickly changing market environment,” stated Paul Graves, president and chief executive officer of Arcadium Lithium. “Our strong customer relationships and commercial strategy of securing long term contracts helped us to achieve higher realized pricing during the year than we would have under a fully market-based pricing approach. Additionally, at our Investor Day in September we outlined an attractive plan to deliver significant growth over the coming years, leveraging the size and quality of our portfolio of assets and expansion projects. We believe the pending combination with Rio Tinto will give us the ability to accelerate and expand this growth opportunity for the benefit of our customers, our employees, and the communities in which we operate.”

1. Reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income attributable to Arcadium Lithium plc, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release.
2. Corresponds to Diluted adjusted after-tax earnings per share in the accompanying financial tables. Reconciliation of Diluted adjusted after-tax earnings per share, a non-GAAP measure, to Diluted earnings per ordinary share (GAAP), the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release.
3. Lithium Carbonate Equivalents.
4. Includes 100% of Olaroz in which Arcadium Lithium has current economic interest of 66.5%.
5. Excludes lithium carbonate by-product.

Rio Tinto Transaction Timeline

On October 9, 2024, a definitive agreement (the “Transaction Agreement”) was announced under which Rio Tinto will acquire Arcadium Lithium in an all-cash transaction for US$5.85 per share.

Requisite Arcadium Lithium shareholder approval for the Transaction was obtained at special meetings held on December 23, 2024.

As announced on February 13, 2025, the Company has received all required pre-closing regulatory approvals in connection with the proposed acquisition. This includes merger control clearance being satisfied or waived in Australia, Canada, China, Japan, South Korea, the United Kingdom and the United States (Hart-Scott-Rodino Antitrust Improvements Act of 1976), as well as investment screening approval being satisfied in Australia, Canada, Italy, the United Kingdom and the United States (CFIUS).

Arcadium Lithium and Rio Tinto are now targeting closing of the Transaction on March 6, 2025. The Transaction remains subject to Court Order by the Royal Court of Jersey and other customary closing conditions. Arcadium Lithium cannot assure completion of the Transaction by any particular date, if at all, or that if completed, it will be completed on the terms set forth in the Transaction Agreement.