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Highlights

  • Arcadium Lithium is an ASX-listed lithium chemicals production firm
  • In 2QFY24, LTM’s revenue jumped around 8% to USD 254.50 million
  • Mirae Asset Global Investments (USA) LLC has the maximum stake in the firm with a shareholding of nearly 3.21%

Arcadium Lithium plc (ASX: LTM) is an international producer of lithium chemicals and has capabilities across lithium extraction processes. The newly formed company has operations across the globe with projects and facilities located in the United States, the UK, Japan, China, Canada, Australia and Argentina.

The company got listed on the ASX on 22 December 2023.

In the second quarter of the financial year 2024 (2QFY24), the company recorded 7.93% YoY rise in revenue to USD 254.50 million, 10.96% YoY increase in restructuring and other charges to USD 21.90 million and 5% YoY growth in net income to USD 94.50 million.

During the reported period, realised average pricing for lithium hydroxide and carbonate stood at USD 17,200 per product metric. As of 30 June 2024, LTM’s cash and cash equivalents balance stood at USD 380.4 million. 

Top 10 shareholders of LTM

The top 10 shareholders of LTM have around 10.13% shareholding in the firm, while the top four have 7.94% shareholding. Mirae Asset Global Investments (USA) LLC and Vanguard Investments Australia Ltd have the highest stakes in the firm with a shareholding of 3.21% and 2.57%, respectively.

Recent business update

Through an ASX update dated 2 August 2024, the company provided an update about the deal concerning the lithium metal division of Li-Metal Corp. The transaction comprises physical assets and intellectual property related to lithium metal production and includes a pilot production facility in Canada.

LTM utilises lithium metal for manufacturing specialty products, including HPM and LIOVIX.

Outlook

In FY24, the company expects to see a rise in group sales volume over the previous corresponding period, supported by expansion of new production capacity in the second half of the year. In 2024 and 2025, the company expects to record a 25% YoY surge in combined lithium hydroxide and carbonate volumes.

Moreover, LTM projects cost savings of USD 60-80 million in FY24.

Share performance of LTM

LTM shares closed at AUD 3.98 apiece on 14 August 2024. In the past one month, LTM’s share price has dropped by 24.62%, while in the last one year, it has declined by 60.59%.

The 52-week high of LTM is AUD 11.57, recorded on 29 December 2023, while the 52-week low is AUD 3.96, recorded on 14 August 2024.

LTM Daily Technical Chart, Source: REFINITIV

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 14 August 2024. The reference data in this report has been partly sourced from REFINITIV.