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Arcadium Lithium plc has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a revenue of $203.1 million, a decrease from $211.4 million in the same quarter the previous year. This decrease is attributed to lower volumes of lithium hydroxide and lower pricing across all legacy Livent products, partially offset by revenues contributed by Allkem post-merger.
Cost of sales for the quarter was $146.9 million, compared to $83.6 million in the same quarter of the previous year. The increase is primarily due to the impact from Allkem post-merger.
The company reported a gross margin of $56.2 million for the quarter, compared to $127.8 million in the previous year, with the decline attributed to lower pricing and higher operating costs.
Impairment charges of $51.7 million were recorded for the quarter due to the plan to place the Mt Cattlin spodumene operation into care and maintenance.
Selling, general, and administrative expenses increased to $39.7 million from $13.2 million, primarily due to Allkem post-merger costs and consolidation of Nemaska Lithium.
Net income for the quarter was $24.7 million, down from $87.4 million in the previous year. The decrease was primarily due to lower gross margin and impairment charges.
Cash used in operating activities was $158.9 million for the nine months ended September 30, 2024, compared to cash provided by operating activities of $261.8 million in the previous year.
The filing also details the pending Rio Tinto (RIO+0.50%) Transaction, which is expected to close in mid-2025, subject to satisfaction of closing conditions.
Arcadium continues to focus on integrating operations post the Allkem Livent Merger and managing its expansion projects in response to current lithium market conditions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Arcadium Lithium plc quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.