Arcadium Lithium (ARCD)

On November 8, 2024, Arcadium Lithium reported its Q3 results amid an imminent acquisition by Rio Tinto. The company’s quarterly revenues reached US$203.1 million, with a net income of US$16.1 million and an adjusted EBITDA of US$42.9 million. Despite challenges such as decreased volumes and market prices, Arcadium maintained a competitive average price of US$16,200 per metric ton of lithium, slightly down from the previous quarter. The decline was mainly due to weaker demand and production delays at their Olaroz project in Argentina.

Arcadium Lithium Maintains Strategic Pricing

Arcadium’s Q3 strategy focused on long-term agreements, especially in lithium hydroxide, to uphold market competitiveness. CEO Paul Graves highlighted that these strategic customer agreements allowed the company to achieve an annual price of US$18,000 per ton, showcasing resilience in a volatile market.

Rio Tinto’s Acquisition of Arcadium Lithium

On October 9, Arcadium announced its acquisition by Rio Tinto at US$5.85 per share, a 90% premium above its October 4 closing price, valuing Arcadium’s equity at US$6.7 billion. The acquisition, expected to conclude by mid-2025, received unanimous board approval and awaits shareholder consent along with regulatory clearances.

CEO Paul Graves expressed that the transaction aligns with fair value expectations and secures Arcadium’s expansion strategy, benefitting stakeholders and communities. Arcadium will continue quarterly reporting until the acquisition closes.

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