Livent Releases Third Quarter 2023 Results

Third quarter revenue was $211.4 million, 10% lower than the second quarter of 2023 and 9% lower than the third quarter of 2022.  Reported GAAP net income was $87.4 million, or 42 cents per diluted share, compared to $90.2 million in the previous quarter and $77.6 million in the prior year's quarter.  Adjusted EBITDA was $119.7 million, 11% lower than the previous quarter but 8% higher than the prior year's quarter, and adjusted earnings per diluted share ⁽¹⁾ were 44 cents.  Volumes sold were roughly flat and lower average realized prices were partially offset by lower overall costs versus the second quarter of 2023 and the third quarter of 2022.

"We are working closely with our customers to meet their growing lithium demand needs as we prepare to meaningfully increase production volumes from our capacity expansions beginning in 2024," said Paul Graves, president and chief executive officer of Livent.  "Additionally, we remain on track to close our transformational merger with Allkem by around the end of this year and look forward to combining our teams, assets and collective strengths to create a leading integrated global lithium company." 

Proposed Merger of Livent and Allkem

Livent and Allkem (ASX: AKE) have received all required pre-closing regulatory approvals in connection with the proposed merger of equals with the exception of foreign investment screening by the Australian Foreign Investment Review Board (FIRB).  Approvals received thus far include antitrust approvals in Canada, China, Japan, South Korea and the U.S., as well as completion of investment screenings in the U.K. and the U.S. 

Arcadium Lithium plc will be the name of the combined new company.  Arcadium Lithium's ordinary shares are expected to trade on the NYSE under the ticker "ALTM" and CDIs are expected to be quoted on the ASX under the ticker "LTM" upon closing.  Dates for the upcoming shareholder votes for both Livent and Allkem shareholders are expected to be announced in the coming weeks and the transaction is still expected to close around the end of calendar year 2023.

Nemaska Lithium Feasibility Study

The company released a feasibility study in the third quarter for the upstream Whabouchi mine portion of the Nemaska Lithium project located in Québec, Canada, in accordance with Subpart 1300 of Regulation S-K issued by the U.S. Securities and Exchange Commission.  Livent has a 50% equity interest in Nemaska Lithium and provides operational support to the project.  The feasibility study is a comprehensive technical report supporting the viability and appeal of the Nemaska Lithium project due to its scale, with an asset operating life of over thirty years, strong relative cost position, strategic location in North America and favorable sustainability profile, including access to low-carbon hydroelectric energy.

The study supports previously outlined expectations for the project.  Total capital requirement for the development of the Whabouchi spodumene mine and the integrated lithium hydroxide facility in Bécancour is projected at approximately US$1.6 billion, with Whabouchi comprising roughly US$400 million of the total amount.  Commercial sales of spodumene concentrate are expected to begin in 2025 and continue until the lithium hydroxide facility comes into full production.  First production of lithium hydroxide is expected in late 2026. 

Capacity Expansion Update

In Argentina, work is advancing on Livent's 20,000 metric ton lithium carbonate expansion.  Construction for the first 10,000 metric ton phase is complete, with first commercial volumes expected in the first quarter of 2024.  For the second 10,000 metric ton expansion phase, first commercial volumes are now expected in the second half of 2024.   

The lithium hydroxide expansions in the U.S. and China are advancing as expected.  The company's new 5,000 metric ton hydroxide unit in Bessemer City has been producing material while getting qualified with relevant customers and will ramp up alongside the first Argentina carbonate expansion phase.  Construction is also progressing on the 15,000 metric ton hydroxide facility at a new location in the province of Zhejiang, China and completion remains expected for year-end 2023.  This will double Livent's production capacity in China while taking its total global lithium hydroxide capacity to 45,000 metric tons.

2023 Guidance and Outlook ⁽²⁾

Livent has revised its guidance for full year 2023 financial performance and still expects significant year-over-year growth following record 2022 results.  The company projects full year 2023 revenue to be in the range of $890 million to $940 million and Adjusted EBITDA to be in the range of $500 million to $530 million.  This represents growth of 13% and 40%, respectively, at the midpoints versus the prior year.  Compared to prior guidance the majority of the reduction is driven by lower volumes sold in 2023, which are now expected to be roughly flat versus 2022, due to expansion start-up delay.  With minimal change in volumes, the company expects significantly higher year-over-year average realized pricing per LCE⁽³⁾ and lower overall costs to drive significantly improved performance versus 2022.

Supplemental Information

In this press release, Livent uses the financial measures Adjusted EBITDA and Diluted adjusted after-tax earnings per share.  These terms are not calculated in accordance with generally accepted accounting principles (GAAP).  Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.livent.com.  Such reconciliations are also set forth in the financial tables that accompany this press release.

About Livent 

For nearly eight decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The Company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent has a combined workforce of approximately 1,350 full-time, part-time, temporary, and contract employees and operates manufacturing sites in the United States, England, China and Argentina. For more information, visit Livent.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. These forward-looking statements, which are subject to risks, uncertainties and assumptions about Livent, may include projections of Livent's future financial performance, Livent's anticipated growth strategies and anticipated trends in Livent's business, including without limitation, our capital expansion plans and development of the Nemaska project, including expectations around production timelines, and the anticipated timing for, and outcome and effects of, the proposed merger with Allkem. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the Company based on currently available information. There are important factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the factors described under the caption entitled "Risk Factors" in Livent's 2022 Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 24, 2023 as well as other SEC filings and public communications. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.

1. Corresponds to Diluted adjusted after-tax earnings per share in the accompanying financial tables.
2. Although we provide a forecast for Adjusted EBITDA we are not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP.  Certain elements of the composition of the GAAP amount are not predictable, making it impractical for us to forecast such GAAP measure or to reconcile corresponding non-GAAP financial measure to such GAAP measure without unreasonable efforts.  For the same reason, we are unable to address the probable significance of the unavailable information.  Such elements include, but are not limited to, restructuring, transaction related charges, and related cash activity.  As a result, no GAAP outlook is provided for this metric.
3. Lithium Carbonate Equivalent.

LIVENT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue	$         211.4		$         231.6		$         700.7		$         593.8
Costs of sales	94.9		112.2		274.8		312.0
Gross margin	116.5		119.4		425.9		281.8
Selling, general and administrative expenses	13.2		15.0		47.1		40.6
Research and development expenses	1.3		0.9		3.3		2.6
Restructuring and other charges	8.6		0.7		34.7		4.6
Separation-related costs	—		0.1		—		0.5
Total costs and expenses	118.0		128.9		359.9		360.3
Income from operations before equity in net loss of unconsolidated affiliate, loss on debt extinguishment and other gain	93.4		102.7		340.8		233.5 Werbung Mehr Nachrichten zur Livent Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 31.05.24 - ARIVA.DE Redaktion Nasdaq 100 verliert 0,98 Prozent – MongoDB mit größtem Kursverlust (18.357 Pkt.) 31.05.24 - ARIVA.DE Redaktion Verhaltene Kauflaune bei Intel-Aktie (27,8503 €) 31.05.24 - ARIVA.DE Redaktion Leichter Wertverlust bei der Nvidia-Aktie (1.001,34 €) JETZT investieren!?    East Africa Metals: Widerstand gebrochen und neues Jahreshoch! weiterlesen» Anzeige wo-site-teaser-box-17129_site-teaser-box_2024-06-01_09%253A00%253A00_2024-06-02_09%253A00%253A59