Rio Tinto-buyout target Arcadium Lithium posts loss on falling lithium prices
Feb 27 (Reuters) - Arcadium Lithium (ALTM.N), opens new tab posted a loss in the fourth quarter on Thursday, as low prices of lithium, used to power electric vehicle batteries, weighed on the company.
Lithium prices have plunged more than 80% from its peak in November 2022 after a supply glut and softening of aggressive EV adoption rates.
Arcadium has agreed to sell itself to Rio Tinto (RIO.AX), opens new tab, which shareholders approved in January and is expected to close by March 6.
Rio Tinto plans to create a standalone lithium division after it completes the $6.7 billion acquisition, and the new business would assume control of Rio's $2.5 billion Rincon project in Argentina but not its controversial Jadar lithium project in Serbia.
Arcadium Lithium reported a net loss of $14.2 million, or a loss of 1 cent per share, in the reporting quarter, compared with a net income of $37.7 million, or 9 cents per share, in the year-ago quarter.
Its revenue for the quarter was $289 million, higher than estimates of $269.06 million.
For the whole year, it reported revenue of $1 billion, compared with around $885 million in 2023. Analysts expected full-year revenue of $986.6 million.
On overall volume of lithium sold, those of lithium carbonate and hydroxide in 2024 were slightly lower from a year earlier as weaker spodumene sales weighed, due to reduced production at Mt. Cattlin in Western Australia.
Arcadium said last year it would put its Mt. Cattlin mine in care and maintenance by the end of the first half of 2025 due to the pricing downturn.
The Philadelphia-based company reported adjusted earnings per share of 1 cent, in line with analysts' expectations according to data compiled by LSEG.
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