ALTM - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to the First Quarter 2024 Earnings Release Conference Call for Arcadium Lithium. Phone lines will be placed on listen-only mode throughout the conference. After the speaker's presentation, there will be a question-and-answer period. I will now turn the conference over to Mr. Daniel Rosen, Investor Relations and Strategy for Arcadium Lithium. Mr. begin. may you Rosen,

Daniel Rosen

Mark, Quarter everyone, XXXX you, Arcadium joining Lithium's First Earnings and Thank for thanks, our Great. Call.

be slide Chief Joining President me earnings and Relations call. Officer. release, Antoniazzi, the found with Prepared remarks section and Graves, the accompanies will The Financial Investor Chief Executive can today's results, today Officer; made and our are along after presentation that Paul of available in website. our be Gilberto discussion our

Gilberto will and available our to questions. Paul Following prepared your be address remarks,

number of request We'll call. additional the follow-up question participants Given any today, on the caller. we a and the would be per one address after call happy to limit of questions one

subject measure the remind that uncertainties Actual in include upon presented let Investor directly and vary call provided Relations well Today's references filings discussion that, include turn as represents to will with terms our Form but begin, financial concerning I'll Exchange information. specific me and reconciliation judgment we Securities factors, our upon of other and Information Before our various risks the accordance limited over with non-GAAP a with identified to you in may various the today's GAAP, factors discussion results to to metrics. financial as presented uncertainties. and comparable Definitions based these calculated on to, based including and these most XX-K those risks that are website. today's And are not will forward-looking best statements Commission. Paul.

Paul Graves

the steps discussed. on of company significant Since of Arcadium new everyone. benefits merger following the the in early year. Lithium combined taken important a January deliver will previously a changes quarter of to Livent, we've Hello, truly completed closing, merger that the allow us marks for to number create a These we This company. Dan. initial you, Allkem Thank the closing of this as first

million including taken, a synergies and cost with multiple are solid of company $XXX a quarter delivering to realignments, integration we track As adjusted headcount $XX as steps on savings We organization $XX EBITDA. renegotiations in realized reductions, of million results, began new result to targeted million procurement XXXX. our in first and achieve

discuss maximizing relationships overall and the unit produce the will allow per multiyear lithium sold. of to of the our products we value high-quality As our range customer us while earnings wide of reduce volatility lithium we

pricing the average businesses our You specialty the the quarter. we can in lithium factors in see of realized in and pricing benefits carbonate and hydroxide products these our in achieved combined

bringing and We shortly. this production expecting company will this previously in increase and volumes more The the combined sales carbonate in lithium full hydroxide is is year. XX% for discuss announced our with plans capacity online year, a significant line additional

quarter on year, online next an of our first provide on the our coming capacity of phase we an over levels to now This the Xx this our Beyond additional result turn in end production in projects of expansion production at the the to over increase Gilberto performance. details tonnes to is LCE XXXX. our will XXX,XXX call that total XXXX. basis I'll discuss will

Gilberto Antoniazzi

higher most and quarter, our to $X.XX last weaker were an Thank leading of the down environment company of XXXX. of due in XX%, EBITDA Argentina Despite due in a price in revenue EBITDA adjusted power and down of stages decline the the quarter driven adjusted to the an Australia. Arcadium spodumene slightly of Slide you, on by Volumes the of at million, year, earnings Cattlin adjusted were compared various across first prior of most quarter $XXX reported margin Paul. sales primarily versus market achieved our lithium the in business cycle. products conditions, Starting quarter earnings at Prices initial $XXX improvement production compared to X, in of demonstrating million diluted we're to lower first market although versus a low-cost beginning Mount position per the prior share.

X. fixed on of first a this on quarter hydroxide groups. lithium had some of and and X,XXX total up to $XX,XXX on lagging metric price pursued performance would make an is provide roughly sold believe we realized contracts. carbonate ton comprising the of effect from of product well at further legacy been product basis, revenue. Turning from as We detail have tons average roughly in index both key core business, Slide volumes We our together lithium hydroxide per our we price a benefit we higher our than portion spot Lithium place a carbonate sales On X/X strategy. metric ton. achieved lithium as price fully floors We market-based our a combined

or we volumes. hydroxide reminder, of a of roughly As customers with floors total have with all group our multiyear X price a X/X select agreements,

of typically price are volumes, which versus against much our floors, priced commitments are carbonate market pricing firm annual over to battery addition the grade which both and as volumes overall of impacting at indices. the material there positively a on as are the Other negatively, of you realized that portion quarter volume agreements. lag the of carbonate contracted pricing, are and In life a lower sell, and our reference also factors subset technical-grade hydroxide

Fenix. in Butyllithium purimetal], on at produced Lithium from our a with are [purilithium] We made substantial the at assets begin integrated of drive driving represents helping fairly and strong which material business, year. and have Argentina, are of wide year performance a at our to no pleased [a with Fenix change butyllithium products, in are majority performance. levels with operations in of margin specialty within lithium-metal, inputs both the X a Most other our the which high operations high the revenue costs The carbonate to remain in applications. Olaroz cost range vertically the product based consistent low with including very of prior chloride production operating quarter, is the our these

for While did representing underlying consistent. their can smaller while of see on year-over-year magnitude pricing volumes volumes, content. this not our high And fairly a Quarterly so basis, some the business tend deliver over helps lithium it you to our stay portion products. time. this of do a same business still the This volatility other value combined that to come overall as in to portfolio did by in down reduce overall

per metric and quarter. mining Western for XXXX. Mount tonne operating Mount volumes dry quarterly was Australia production reduced of is for on achieved plan average a X.X%. tons and on the the The of roughly I rest quarter we XX,XXX lower earnings spodumene, up we back average operation due basis, an $XXX than to year our QX, now Paul. fourth cost still out but the that ton. which dry call This in the Cattlin We of grade equivalent production realized will the Cattlin SCX to All Finally, of cash in sold under call. versus $XXX of down versus just is our metric was metric pricing throughout discussed turn XXXX at the meaningfully quarter per

Paul Graves

Slide broader negative storage U.S. demand the out and provide with you, notably focused much from headlines began from everyone. I'd part tone on Lunar seasonal in And on the X. typical on especially bearish as a the see leading Thank for well The driven was pretty by Year holiday. OEMs, what slowdown into various those market seen the some to this as energy observations as market lithium year in around like we Gilberto. set lithium New

we're strong Now and not that first in global where numbers EV first sold growth few stronger. size percentages, that we're were can to some up quarter equivalent storage to first was market were through that XX% reflect for the demand through talking of not story even reside first of make all to data amount And much and actually total certainly so in of in XXXX year. reflective lithium sales over demand EVs the market months of global sold year-to-date IEA. energy the to of scenarios China according the the actual in doomsday The was the and of perspective quarter, from we in this XXXX continues and EVs quite to of in posted keep the quarter. say lithium Global the sure just

First year and China prior from of Chinese were XXX vehicles new evidenced We the marked in on in March Expectations EVs the are up energy Show, which all by April and recent that's quarter of around second month display. the XX% sales Beijing featured vehicles, at XX% incentives X new with government sales for by consecutive representing even million economic spurred over above the in units, XX%. the second Auto announced quarter, higher EV rates penetration the

sales lower points. plug-in to opted EV higher have other and mix hybrid accounting data some battery analysts versus demand industry some for And EV near-term recent forecasts,

gigawatt But lower are indeed as these and years. to a PHEVs scenario, on storage, sales, average sales nonautomotive BEV demand However, From point, -- if from demand such X stationary year and more hour see is analyzing ago, you're in 'XX higher offsets to battery average, BEV approximately need going PHEV to we reduce multiple demand in on largely sales from total forecasts, this 'XX due important compared an lower are, and you can from this for XX% sizes this a that for fact, where increasing. demand account down the basis. to demand forecast in also lithium globally

what is forecasts will XXXX, Our Xx ago. in previous than different continue XXXX analysis ago. more both and look this able were that around year to demand suggests XXXX. slightly be industry exactly we is Putting which tangible forecasting or X% XXXX, XXXX into to terms, of forecasts suggest no But even that almost that was all around lower year a higher the total been demand at a than it we've demand is by lithium

what market. last a price seen Turning back prices with appears encouraging signs of the we've In cycle. current the bottom lithium from few be of to current recovery increasing the weeks, to the

price the has a support is with lithium what prices that a understanding most on With respect is seems the sustainable of side. any well reinvestment. challenging industry of The lithium floor supply analyzing fundamental happening to confidence years out spodumene in getting cycle, shift prices. battery entirely Perhaps clear chain. long-term the the of part above future historical market the incentivize been that market lithium our of having the the China it and growth in there's supply been found the to Africa which China, the recent in last surprised these high high in encouraged degree high-cost sustainably upside by prices likely in suggest of supported a from material plus The seen would run-up lithium was development almost market supply lepidolite higher by assets has of

continues, which models lag For analyzing the market to our of our of the side opinion, forecasting. supply keep models reality supply that is research to especially challenge its struggle up the to date. seem lithium seen and Most independent in industry their analysts of publish in to the

we look and As actually 'XX into have LCEs an the fraud number see the overstate at the put And of numbers example, and to they material. we forecasts. for with volume that out from output analysts, qualified that we this when repeatedly is volumes compare their specific debate public of market targets the some battery forecast 'XX. get themselves these versus producers before a leading of We compared even

moving on updates its We're We expansions. company recently few completed -- X. XXXX. providing the online continues Arcadium-specific bringing a So Slide to for

we and at at expansion commissioned carbonate Olaroz the nameplate at lithium to a first ton as conventional capacity lithium ton rates. process. expect progresses, increase metric and Argentina, For XX,XXX expansion would closer Fenix carbonate pond-based metric which is year to now first is with volumes to track The carbonate fully in has produced successfully the what close nameplate is XX,XXX its is producing on

and has ton new metric in to combined are company the and as realized the XXXX. Putting of in also production of Lithium cost key metric planned million They remains lithium and cutting million across all reaches meaningful year functions in begin lithium the lithium to at on year, $XX site of track spending. XX% new to immediate $XX realize first them. costs, XXXX. producing in capacity unit track of XXXX a undergoing needed reducing commercial on City are are growth by weighted the effect. hydroxide as the already take be synergies to and early lower volumes to unit Turning half Most full actions feed expected will a carbonate third-party and second in totaling XX% the including hydroxide. ton these in full customers. quarter to remaining be with company increase with savings achieve some qualification The the taken sales X,XXX to this at on regions its these all produce Zhejiang, both Bessemer levels expected remains lithium together, volumes China workforce global towards Arcadium quarters in and approximately carbonate The XX,XXX savings for the back steps to to X

efforts, in as The has We changes shown full will continue provided informed initiatives. were company you on items including the select to these longer-term and Slide X. made or other scenarios on financial quarter, last our outlook keep to XXXX year progress short- no that

of prices maximize want slowed a XXXX. prices to investment assess allow earnings performance is growth their the spending framework I pricing years. environment as over may next planned These impact specific overlaying lower of to will our investors mechanisms. market to compared our while turn this Arcadium be be company at We well as as On which with of range to X changes the of execution. market not agreements focus commercial a XXXX expectations As in potential to provide selected to our derisk where our of scenarios Slide should reminder, pace guidance, achieving the capable our the in we were how X, the and potential focus in existing capital beyond Lithium initial understand light the provide and price our synergies financial of to a construed to opportunity

our we at portfolio of an we and this better world-class much position have in that to and believe combined to a update a provide a Investor grow operating However, on a to in as Day growth assets year. plan we development continue We are plans September company. comprehensive of

of capacity metric to The XX,XXX commence James to tuned So called metric and we're hydroxide metric of known capacity tons that progressing additional be investors. our LCEs XXXX, end expect projects an XB at from end reach at sales each on please for Both multiple in nearly projects X Galaxy, in of to carbonate By XX,XXX should are information production only further as lithium of these the next very construct the In XXX,XXX be we're XXXX. ongoing expansions. to towards total Bay Nemaska to asset. of carbonate Canada, up commercial XX,XXX Sal located the expected via we're fully and Both increase stay we generate are integrated and XXXX. this. complete spodumene already Argentina, production years to ton should deploying CapEx familiar Phase In mechanical of these of capacity build at we main to to X Vida, the continue Lithium, spodumene completion Fenix XX,XXX tons by LCEs projects to our X metric work growth lithium to XXXX de close other. looking of mechanically tons concentrate over

various CapEx, in levels previously the will $XXX we With assumptions roughly previously still But allowing expect speak to the slowdown expect process quarter standardizing consistently of the rest provided be we development announced first operating XXXX levels we cost our to this $XXX for to to to of XXXX, require billion respect million capital start million spending to the take We similar it from and and the in capital to years. X to as below of the spend guidance completion. decisions year growth quarterly effect. us We following mechanical estimate XXXX XXXX methodologies CapEx portfolio. fully between to about deliver projects, roughly projects this these at are point, in $X.X across

metric to we expansion of expansions generation, pursuing dictates. coming of these multiple of supported fund for for these confidence is itself sales strengthened CapEx We to through market will the be funding Our the them. with We our cash were the by The growth have to come these confidence to carbonate position of in free this combined already projects ability about complete. lithium in in benefit from volumes. fund strong realize XX,XXX attractive different as believe this are adapt the higher and year we financing, source a sources ability plans tons online requirements main a by will the which capital flow

next cash of We as in also realized phases years. expansions the additional series flow online come in the coming

post-merger, company financings $XXX asset-level expanded loans sheet, be this, facility, opportunity and the more Dan up cycles, that and million remain call financing has highly investing and $XXX strategic which pursue on confident assets options, as Beyond to There's in and for which customer growth. over now throughout company, doubt credit to attractive no cash such in I'll $XXX million undrawn the the and/or to balance government back significant questions. turn we have stronger to million lead prepayments, grants, revolving can will our we partnerships. future a resilient these market other a

Daniel Rosen

you, now session. the Q&A Mark, begin you Thank Paul. may

Operator

you like time, If [Operator a question this ask instructions]. to at would

comes David from Our Deckelbaum first question line from Cowen. the of TD

David Deckelbaum

or Thanks Gilberto. -- online to really love curious, nameplate some the rename is for and point around rebranding [indiscernible] Paul Galaxy. at you and in as My there one right come look first to and I I'm what or of vertically to seller are the intention third your 'XX, asset party? a spodumen into plans is be working that integrate market with spec vis-a-vis sort [Becancour] a the now

Paul Graves

know, at looking is But to we looking the business for have and and business. locations, as our hydroxide other We're Good question. in the model and other the expectation in Bay to We, much specialty spodumene Bessemer whole [BecknCore] so potentially Yes. including operations and a not absolutely we're is parts reasons, other James the at lithium looking carbonate in salts be you existing of business building as bunch potentially of third-party location, Canada. lithium in future. where we're at plan to integrate City downstream the a be

of to tax be being frankly, America parts customers from North us. incentive customers incentives and will build capability what key of of I this, And willing seeing different think the us North looking certain parts hydroxide encourage for financing drivers America. incentives, also, we're provide are in to increasingly to

while And resources. obviously these continue we're will we the I have that. explore would that say communicate we a to few fine, for by decision, those. a spot we will selling years concentrate developed way, So we when

In fact, to we but spodumene be longer integrate that intend generated asset through generate it's from concentrate, cash a the will pretty Galaxy good way in fully fund to absolutely term, downstream.

David Deckelbaum

And later? in to sort there at risk the you completion to more then getting just you you've months my expansion spend back there to see then to the finish capacity risk conjunction on point? of the Fenix volumes these things that, delayed any think job Is XX delaying follow-up about of as trying onto this agreements? a as with second price And you Argentina, this, contract is I'm do fixed residual expansion curious, putting and anticipate sort of do X the in crew bring capital to one, --

Paul Graves

compete, that guess the contractors easy capable there's there. It's with both not and down with I expansion, doubt us But you will, actually to de of mean sort slowing you I a think qualified each resources other to but if get MDA the also only region. there's shortage and need. in others trying the not of questions, no Two Vida execution. in I Fenix and terms of Sal helped

the assets. done carbonate which ponds, Sal using starting pretty to construction chloride help on talk complete the in of construction execution there to at generate X some that the at drive for the see. in around many ability us, we're to we to and either actually synergies ways. will looking the well, is which allows de more path largely are Fenix additional already we as grind It Many us into to help about feed a we're of integrated Vida put going probably more down develop closely the as combine those So volumes, project also to or

will, you and certainly so I them think So doing don't a there construction opportunities I if opportunities capital total and I from to don't there's see from see are forth difficulty, in slowing that. -- save certainly down suggest

In way. carbonate optionality of said, I where terms we've hydroxide of contracts these I'll of generally speaking, call customers on is being it to and capable of what own carbonate some talk of in in contracts contracting its that put we is that and kind about. between difficult get think, those to paid pretty X always But strategies, contracting

with so those And lot really a and will, carbonate look only to of, customers at offering of own their with hydroxide of maps and traction contract continue structures. interested absolutely optionality a customers road online technology paired kind And are to are you having a getting that if chain we that. we're battery in sort those both who will as to in help technology, bringing us will

Operator

question next Your of Stein Robert line the Macquarie. from comes from

Robert Stein

to EBITDA the and the regarding adjusted restructuring wondering EBITDA Just and charges. other

You of breakdown $X integration provided of a the costs million.

And what next could expecting that similarly, study assets relating any any include or to other forward? spend? net-Cap cost that are to end that we that changes wondering be an going we seeing quarter? does potentially are Just integration And see of we

Paul Graves

you Gilberto, want one? answer do to that

Gilberto Antoniazzi

Yes.

that to the much, see cost for close you is, XX%, of see XX% say, you're cost would it's the pretty to going the I'd the first I say, in quarter year. So

some in Paul that to to of in actions some accelerate contributed integration the As we terms force of terms in integration took but also higher reduction highlighted, lost charges. the

charges that had the in we at expecting quarters quarter of first the first year not compared be same quarter year. X smaller level to minimum the of all much the of the we're for the would So remaining

Robert Stein

addition adjusted going guess, going forecast but moves? we expectation to to And what's then a mean, currency constant, I losses, to EBITDA gains a it's given hard the that as forward, your the follow-up, currency forward? and be are expecting currency, I

Gilberto Antoniazzi

as forecast don't hard it's to, actually it's -- to Well, said, really hard we and expect. you

recurring So we're not necessarily gain. counting to a on going that. be It's

our actually related that ability hedge balances. we're we assuming we are the have cannot But gain again, is element certain have So there element to we gains cash not an we but the to to don't those effect, recurring quarters. hedge, -- in is this to have X don't next forecast that again, that we're we fees going

Paul Graves

[indiscernible] look, won't of of some driven same have down, part balances cash balances the as cash those those Gilberto come remeasurement by said, balances. with cash and is we this issues

it So same the currencies. expect We're who to be peso other we to magnitude again, to don't the knows. exposed exposed

So chance there's big but them not to a swings, this we're the magnitude always time. of expecting all be

Operator

line Vertical Your of next from Partners. question comes Research Kevin McCarthy the from

Kevin McCarthy

Thank you. you that level, that today's be would from show likewise related forward? upward moving would your number or metric Paul, I secondly, tension appreciate your flat is helpful. pricing there refresh fixed? of Do the downward detail Or contracts? on the Slide is average floating selling how to trend prices there Can then X. color And much Any market you that, function that on essentially there you per show that to $XX,XXX flat? you on trends prices versus think trend if were us how ton would

Paul Graves

Sure.

is below $XX,XXX. on ahead, we new slightly year come most average goes downwards are volume the price today Pretty X/X hydroxide or floats on quarterly much where roughly going prices form, contracts. the price we about the our market market business. against index they coming else a If or have either an trend market renegotiations volumes everything the So those would price in as or prices to stay largely at that price expect of by monthly the covered are because these shape to is on depending way, and some of

prices where and simple change in expect said, market the the that prices be market-based to disclosed different fixed as price just have we'll year. tick unlikely floors during drive down. contract at averaging as the more back kicked is. are I those stays past I would a today's to online, contract prices to that the it pricing down. But expect structures if any we've bring volumes because market or volume, the market think The don't we we So we in and as Frankly,

moves starts price those up, those volume exposed price. the market then start to market if go structures and all actually flip become is, above as increases floors price more because Now to through the them, for price that of the market to the to is up

prices we're reasonable majority And is a will a the where hitting market lucky scenario there's so that the long we way in of of that our massively north portfolio today, get ceilings market time. further from at And with the those the actually are that point unless of contracts. not price really in

expect the we to basis. on of most would therefore, So portfolio price a floating

Kevin McCarthy

And wanted It took a down ask budget didn't budget then D&A lot flow perhaps production your you as million. to capital see $XXX to million I change but the about the $XXX I I missed like follow-up, versus capital looks guidance through. the a of something. on

to looks the why you side, just that can that's relative Maybe on about was coming million. $XX So It at small could like quarter. maybe see that you And think trending? to quite Gilberto, specifically you down. talk about D&A XQ how I you talk guided $XXX last million

Paul Graves

on made. On multiple are when are capital the the commitments on spending payments on to growth straightforward. capital capital lags have as side when the The made, question -- side, is so can really projects quota

to your slow numbers. spending capital instantly don't hit decisions so spending And down

a companies So both as of lot companies. was independent of absolutely last year spending QX by made commitments

really So trend we revised want expect you're have to all to plans downwards on that's you execution if talk that there. move we in And place. these seeing spending see the Gilberto, in that to D&A? as on as goes we year

Gilberto Antoniazzi

QX. start commercial we we're they sold, that they early is products way assets come, Yes. be we the as Fenix expecting what the to On volumes start QX, when commercially we selling -- we're call and assets when late amortizing the we for really production those said, D&A, Olaroz and

to QX up the throughout a as as the So year result the in seeing that, of QX and picking half already going start depreciation second you're of well.

the primarily difference. that's So

Paul Graves

was to CapEx were that It slides. Yes. And million $XXX referring excluding maintenance in to of $XXX the Kevin, million to we clarify, growth just our CapEx we guided.

we So as well. that include to need

Operator

Your from the Roberts from Jon line of comes Mizuho. next question

Unknown Analyst

say to as of it contract up Thank in percent XXXX? goes if Is early volume progresses. under the down The early too XXXX you. resets back it

Paul Graves

early. too not it's No,

Some of under year, but with have this float of higher of the online of coming the some next these to because it we that partly partly commitments allowed market we've we the market, because have volume contracts starting year. state

have of in be period, will Again, volume we frequently natural quite that next then sort in So looking those market these that's see of of and are float process contracted contract starting allow ones we existing where there's to contractual on in the bring some more of to into step-up actually that in volume will that commitments again, volume the a year. happen them. on, sort commitments as with this contracts will not step absorbed you're we new already bring But that of contracts get under will then that amount going advance volume stub forward. it step-ups

because that to carbonate over carbonate the will higher you sold a you simply of it are not around in time. would which we as I than -- these on I past basis. the mix, So a will under percentage said move before, basis see have most does have combined volume company will though, Livent then as say a we as not the seen contracts on going less of is

Unknown Analyst

do to began reverse benefits there's to Albemarle the conducting quarter. need follow? so or doing what need something during for no then Do for the you overall, lithium similar auctions And industry others they're

Paul Graves

market the and market. market, commoditized in this in is to explore of concentrate close all out some technical-grade how did. Albemarle people bunch and we an there's not our parts it's particularly the to like there's know certainly the I view. carbonate testing what I'm the spot I have is been of a some of state the think opportunity of more think I -- doing everybody of So what

lack people I of the confidence of a both think and time, low. large reflects in reflect and really market conditions these the in parts it really really when some of when don't really high true they're most that indexes they're have indices way

the market carbonate which handle especially the than what in today the grows. There's all trying kind is think it to as market in diverse speculate, as pieces a buyers It's years market, more certain of And ago, trying the market was parts we're so of is. I more expect of some would it couple a to a get frankly, of people on market. of you more real the around

understand So industry, more there, real is out I demand what all do really trying environment environment. the think environment and we're an importantly, as pricing to

various So testing discovery. different I we'll and demand out price to volume have points at all think better be in and time ways

Operator

Your line next Richardson question Stephen from comes of from Evercore. the

Stephen Richardson

hydroxide really integration. carbonate maybe on had and you've that at there that. us lower get Argentina. on of the the some I talk of feed you is latest easier and some opportunity always lower your your that's now some about Could was some sell to produce and of could grade thoughts could an a there higher than Fenix like it your maybe grade, through in some assets it But and And practice. to wondering plants thoughts know with seemed probably the of you with in on I elsewhere you Paul, us -- grade lot high-quality the give -- you time was paper

Paul Graves

fed It not run know, and ways. We to from our right. part But with do lines from is that many time, carbonate we're as customer a hydroxide right? multiple land that. every Olaroz Fenix in and absolutely you're requalification. replacing from definitely that look, difficult takes -- will require and just No, you carbonate strategy. of we doing So core absolutely It's exploring every

needs change make we carbonate We that version sure Olaroz the the that we're to from because too. will fits can getting of need a that to obviously, Olaroz parameters

between or real at mean, but figuring But it's So cannot if you the lines, of much grade hydroxide really, in what was first mean, can wider carbonate like price quarter, it on, opportunity, then they because us of I the more you're in least, use newer varies spot complicated you wide. question, and really technical the grade line. old the look a and selling what didn't and ask hydroxide we battery can I by terms tolerance impurities selling differential it's handle, for we out ones. The little a

to see more which battery we legacy asset sell because the consume of of most be by anyway, next lot looking the technical a it happen I be in grade, and into Livent real able year lot a of to we are so to of opportunity. expect to expecting takes. the year, it's absolutely by a more produced time it's that all But tap don't Fenix, this it don't synergy And to produced of that grade, something have because doing.

Stephen Richardson

there's you just on Gilberto, Appreciate a Day here, -- know discuss now to realized QX. and as But later $XX,XXX self-funded financials I in simple flow a if that. pro the Livent forma a Other lot is I look $XX,XXX sequentially wondering, parts was year-end at question. of know of in I on ton and at if forma considering were basis? the we I or legacy a moving I Analyst -- burn the know forma guess cash cash on I but But pro look again, it's price, financials just a the a forward And a there program the basis, at guess, is just the and maybe pro restructuring neutral lot have well. there's something we'll question maybe at a year. then tonne,

Gilberto Antoniazzi

I a less answer at The can simple honestly, $XX,XXX is to bit well. the that self-funded even answer the more as maybe or than question. Yes. program

that right we're not So concerned really now. about

Operator

next Joel of comes Capital line question Your the Jackson from from BMO Markets.

Joel Jackson

$X up pro $X.X with when you quarter was about follow or think to now going the that of ended you I I Actually gave company thought billion question, around forma And on everyone. merged. disclosed the March cash that billion cash. disclosure

you please on the So elaborate it Could March $X.X dropped that? quarter. billion seems cash in by like

Gilberto Antoniazzi

it take Nemaska $XX side. what those for after adjustments there that's we -- look excluding that, has, overall mask cash on now Paul. Arcadium little that because the And Joel, numbers, honestly, it's right? know a more at position So have when I I'll the complicated I restricted, just you that -- you is to shows than and higher I this Arcadium call close $XXX XX-Q in cash some number million the have it's what actually is but do

yes, So spending, lot transaction an we we in integration by had cost again, quarter, the but a -- severance. important first driven

We outflow of have in $XX some made we investment about a payments that that we the have in Iliad was tax also cash million. quarter, have and an big first also done

to again, outflow So quarters of cash very next that not first the going be a repeated was year. big quarter X in quarter the is

a don't proxy So that the take for remainder as of the year.

Paul Graves

why there, effective it I think, says, $XXX as And it talk to million balance, it I our not $X this believe off-line than closing north of rounding of in absolutely Joel, the a was. I all did billion. integration of cost merger is there Gilberto happens QX, I bit cash certainly meaningful can of to through year. we you a don't $XXX stuff was which change. which sound the all be repeated that worse costs, rest as cash said, but result was actual which a It makes million, wasn't you burn about going of think the the

Joel Jackson

your over Okay. I'll at And question. ask the looking my second next expansion. and years slides some of on CapEx

projects. would talk So sort is of this -- about know Livent [indiscernible] and I

break talk sales these end not 'XX if or second at you of or be XXX,XXX about prior by the down sales Canada, do you 'XX of deck? in the is, obviously Argentina would Could production just by about your hit the 'XX,which that's and first that then gave you CapEx all guidance targets, you've and maybe 'XX volume volume. part 'XX on So what you the your the on And tons projects talk capacity production -- like? question would as look XX. part done Slide question that of Could you

Paul Graves

Yes.

you So X think kind -- can a me for of ramp can let and nameplate et you we conditions, me it's straight X, I depending see Fenix give you this to year can because too, or a cetera. you the easily, go as numbers on Olaroz accelerate to and you a bit early little time of have can of slower 'XX months production bring year, delay or on levels by X,

we So same which Sal end we're which allergist de a of going Vida, same at at the end have complete to go XXXX, where time, process producing. had immediately will conventional and we now to almost different based the is That the the upon at to nameplate exactly an Fenix have completed to of tends as XXXX, Olaroz, expansion the at to production. ramp full rate

level you, the it So though, a up XX% it's to and them run all so we That's frankly tell and have to little once me reserve you numbers, the be going name and at misleading, of answer later. going I be what difficult as think a one should plan, the on I'm that kind tell one would production that nameplate. they're numbers running. at don't future of to production for to they -- nameplate right will those we're

probably XXXX at we BeckonCore. some once pretty else certainly, sure. still will for everything or happen So with into ramping running delays get XXXX, in much up but those qualification numbers be

And sorry, your Joel. second question was sorry, on what,

Joel Jackson

break [indiscernible] before done you've it. million $XXX that in million CapEx. versus project And Can Slide 'XX and like appreciate Canada in 'XX -- second on for XXXX, Argentina? growth XX, I you million or just the $XXX for on is question down 'XX by the

Paul Graves

Yes.

is the there's about the different. spoke we find in today the not September it, we're capital that to Investor know do and is So Allkem about when but Livent that spending. we do an don't reason it talk spoke doing the way to answer, what we're about we're both that going And Day. different And it we're correct, we ways way but not

sure doing to of bit like talk we're everything can processes those a to a So make work consistent that and about we in standardize manner.

detail that of detail in patience at so certainly project not by for It's your project ask will we we'll a disclosing more more until be September that lot So little point. long a part. on granular that

Operator

the from of Your next from Citi. question comes Kate line McCutcheon

Kate McCutcheon

mentioned billion next to similar to GM Are being the guess, able do few I for example? [indiscernible] at deal, years, Paul thinking the you do last strategy still you $X.X [indiscernible]. there, looking asset. that? the around you facility and had the appetite Is still the And deal the available? prepayment development slowed? the to your time how that over OEMs of are So there a Canadian you from funding

Paul Graves

number we Variable need? primary two different frankly, appetite variables. prepayments far look commitments spodumene hydroxide, that depending prepayments in lithium whether or today. one what not or in it's the much variable a is X the I customers qualified do is is there's long-term place Look, funding, it's So it's it's on have and number ones like whether carbonate, And for it's less view if If have qualified for where structures -- yes, it's Yes. it? for customer then really, very interest they IRA approaches. other think IRA

that give dozen could in doubt to it supply. And today again, by that Now return just can a of providing of future very, that longer no for that run in XX you interested list aren't are customers I a of capital customer, very a there's security of well. we potential half varies as list customers strategy pursuing

I linked as So customer wouldn't it's would describe projects to describe very it a norm, I specific assets, and as there, it market definitely requirements. and

Kate McCutcheon

Yes.

$X.X So $X.X billion? on funding, million that next case for what that is your base years, the few over

Paul Graves

prepayment in or towards are other from customer here from do requirement. exactly in funding already we a -- or funding Look, difficult say we to will as contribute some, place going prepayment have Yes. sources. We know, that and is you sit today that to a it's

grants some active loans, to detailed on that and also pretty funding, bodies with but of conversations just government going -- willing provide outright today are forgivable both low have cost grant. We interest-free loans,

pretty So on. a active conversation going that's

about they're they're invest willing We what to willing and too, where conversations do capital. have with also customers, to

and when in disclosing and have we as that again, arranged it. place, be funding So we will

Kate McCutcheon

Okay. And then my follow-up question.

feature to doesn't your in outlook Hiland XXXX. Now

what remind when this than asset today? subsequent that different got expecting me does Just to? you [indiscernible] require price run a And are to we've

Paul Graves

SCX bit an the future quarter is about maybe per what Yes. on different more we're spot is. pricing answer a at seeing second on tonne Look, $X,XXX, depending concentrate moving basis. the in Today, very

is capital enough will in be of today, the least, be mining justify at can towards see of hope operating hoping everybody and will XX%, we as news to and be and which is XXXX, we're good unlikely higher we pricing to QX, significant not than which think current today's needed to stand the if But Mount end early the XXXX. ends, Cattlin. mining is things will it's pricing plan to do for increase, but saw that at high next it phase I be that. We at sometime Cattlin, when the that obviously likely it's from move So news to environment, XX% not to, Cattlin into the quite we good Mount

beyond these And where Cattlin any today's so it any numbers Mount it out we that's leave be will at we don't expanded because have at why today, of really or prices visibility is confidence today.

Operator

Your line Wolfe next question of comes the Research. from from Parkinson Christopher

Harris Fein

Fein on This Chris. for Harris is

portion quarter, good a in for trading I of just at I So a EV bit due and is a little believe by differences of the to still to guess, today discount hydroxide carbonate, demand region.

you'd that you flexibility is on Now fully you're any your how in carbonate process you have that value realizing? per to has the tons? thought those lot Or more online, allocate more like can tonne coming there changed how capacity optimize a

Paul Graves

that the qualified reflects not and is premium is into portfolio. on that I absolutely no statement our a you at China. and discount lithium material, struggle that at it's chains qualified trading hydroxide There's our the price is case carbonate, that's carbonate. you're But not with data, portfolio So point assure your significant can not doubt that largely I only carbonate. probably just that the to a to in to a supply right, point, outside to but the hydroxide absolutely discount indices look,

do that to we frankly, like continue commitment We China for So and that that see premium lithium to in that fact, have while to especially flexibility it. ex-China we customer ever hydroxide want us. to, way don't the large we're hydroxide, pursue not sell have not if structured. we because carry we to they're and the to don't particularly the a They cost of those fixed don't capital-intensive plants they're run going

price in will chain. LCE maximize to, assets are also customers So the what both we to the of per hydroxide allow need But be frankly, we'll we in China that can swing and advantage the place but take carbonate value choose to need continue customer to meet in and commitments. the assets opportunities to China, will, as us commitment that sell to and we carbonate

Harris Fein

we this on my I for don't think And yet. follow-up, touched

you of now right where right And stand are do signs -- seeing restocking level? the Just cathode what's producer at you now? view inventories your any of

Paul Graves

it's is no of appetite market, characteristics in point question interesting one So at to supply time. today's view, my held really a in this rebuild the lithium I really, in no think the almost but of because great chain, inventory

X were I reasons think there for that.

some nature build in hydroxide carbonate, long run where because the you you're the places lithium intermediaries is being certainly certainly the and GFX of really a -- lot inventory the hydroxide. hold them supply not which confidence there, of that for given just carbonate held the the seen is be to the they of in And system inventory think for it. has step and we've building slack of willing I some inventory carbonate others. more in need that there if There's chain some

chain much confidence to exactly of going battery a they variability needed. in lot not of I like big different in and from kind think looks swing there, for flavors XX to technology find next obviously the to visibility, as build predominantly what's directions of sort XX to different have all of be second OEM we're and factor high lithium-carbonate in there, mid-nickel there's cathode LFP, nickel advance tending middle that the just got out there's so to the nickel the in you've There's of But right? There's there's X months high lithium need part though the cathode the what therefore, map LFPs the sort producers there's to any as is they and their really the don't confidence customers. road today because that hydroxide. of to yet supply can to

clarity think starts I restocking we more think get we'll need I to looking first clarity then So for. that and the rivets appear, when that there

Operator

Your Molchanov James. the question from Pavel of comes line next from Raymond

Pavel Molchanov

Two regulatory questions.

Argentina. First on one

mid-March could court operations, I ruling. it release You know but does it had affect not the affect about plans? press existing expansion any the in any future

Paul Graves

Argentina Look, of has moving to think pieces I got lots it.

the plans, is new we part expansion there's of in of that permits have environmental a expansion likelihood be completely plans to too, it very existing most do expanded what because that being operations low impacts rather I think future issued.

even there's that think ruling. will, enforceable And to, if to largely focused on and lot debate which you administration happen. going into I made will there's this to particularly us from under I will important Catamarca low about of so very being lot certain they and provinces, continues fix Catamarca by changes companies federal ruling mean, a more that [Salto] that very Jujuy, actions authorities making plans. think sure frankly and of by the with investment a do political things, certain the less it is risk a the the it's such how as them of province impact They're direct to like we that do. or anyway and was. funding is provinces It government take requires investment the by require expansion

Pavel Molchanov

a the broader industry. Okay. Kind of about question

are more overseas assets. How and acquire kind seen at more whole looking about you headlines some players have Chinese lithium We looking dynamic? of that the to at

Paul Graves

Yes. It's a difficult one.

to I think not a can as only that low Australia, some buy to as well much jurisdictions only buyer Chinese buy too. key you is in anyone buy in not that being very you U.S., likely not Canada, know lithium the in easy,

saying there but they know. So aren't as seen going. do places as them we've it, of many Argentina, Chile Not complicated is them won't well. our complicated it's some friends for go. to

because so really invested capital in that that view available have to aren't [indiscernible] just places many aren't in they've explains much So them. assets my prefer why and in there really go. would It high-quality too, frankly to to Africa, they

Operator

comes question Capital from from last -- the sorry, next Yefremov Your line KeyBanc question Markets. your Aleksey comes

Aleksey Yefremov

to approved which kilotons of as where visibility you projects your wanted this Is I attractive XXXX. Or target your just conditional on a think clarify sources aspiration, capital? high at we into cost? on confidence finding by capital it have about for XXX is should

Paul Graves

So there's to X I guess answers that.

not projects. the are very think themselves I well are These projects speculative advanced.

numbers than the underway advanced to And much projects you so to all been these and the underway, to speaking, there's are out largely on in always and about projects construction put contracts of advanced complete. they projects about far but between much well high is it's as how you, timing pretty is more well. the lot that are engineering XX% a are and what area are, XX% the project well, commodities like, you've visibility I'm sell the If about gray of as that a looks is, what place, them think very

I seen in of from to some the government Canadian themselves investing and the the same, going with reasons. available particularly resources. an for a easier assets to There's be and tonnes projects biggest that's downstream customers as feel confident up battery So of I Canadian required lot trying Canada be really frankly, clearly, get Also, state confidence. other funding they're supply chain a to therefore, Canadian very to that from built. financing to potential important assets broader would potential as Canada, financing but a regard really interesting is is is the funding a and high place place because who to frankly, the mean, well. many there XXX,XXX partners in are in encourage the

where ability to finance still cash internally, high in but generate those the through have big the way clearly are depends therefore, it expansions. on goes confidence to that fund actual we chunk of we best really a the what we price is working how So a and and

Aleksey Yefremov

per follow-up, to be [ASP] was in you right now, a the your low-end this I market kilogram understand $XX where as scenario, And QX. XX-plus were yet is

we look by low in you So low should and you should market your with end about the scenario end being EBITDA as at take X it just at [indiscernible]? market own per outperforming $X or the of you we are the the kilo

Paul Graves

Yes. question. points, Look, observations. of interesting couple it's couple a an A of

on why pricing that touched quarterly a like at year basis. quarterly on basis, mean can a is we market on the things judge really basis. can't a things upon You I full lags quarterly which in distort we it look

be it our is is in below prices The in delays the QX think will I that more rest the year comes way. the than second lower as market much to exposure market by $XX online. the volume of

a he's to sell the to product below, be it's going I going unqualified but into go just and not $XX, touch to long market, that's into an China, below a try $XX. certainly going and way think largely below generally,

I did or reverse to see that were we and that different goes market. QX exposure trend price achieve it's because So had not price. able to start much "outperforming we in that year on the but exposure change less we'll to and we a QX", portfolio market think It's little necessarily have market as these to more our just the

where what So market outside is in $XX if market it the China. stays probably are think a today, touch I probably they below the exactly is China, about yes,

actually to So market do see how to numbers. those we relative we'll where wait to see unfolds need -- we still the

Operator

the turn back That concludes Daniel over to closing for our Q&A I session. conference will Rosen remarks. now

Daniel Rosen

to the any everyone. time all questions address we have we have. call following but That's the may call for today, that Thanks, will be you the available

Operator

X First Quarter Arcadium our Earnings Thank you. Lithium This Conference Call. concludes

Arcadium Lithium (ALTM) 7 May 242024 Q1 Earnings call transcript