Latest news with #Arcadium
Bloomberg
11-03-2025
- Business
- Bloomberg
Trump Rules out Tariff Exemption
Good morning, Rich Henderson here in Bloomberg's Melbourne bureau with the latest news headlines. Today's must-reads: • US tariffs on Australian steel and aluminum to hit • Rio Tinto offers $9 billion in bonds after Arcadium deal • Ukraine agrees to US proposal for 30-day truce with Russia US tariffs on Australian steel and aluminum will take effect later Wednesday in the US after the White House ruled out an exemption. The move follows efforts by Anthony Albanese's government to secure the exemption, which included meetings this week between Kevin Rudd, Australia's Ambassador to the US, and the Trump administration.
Reuters
27-02-2025
- Business
- Reuters
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 ( 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.
Euronews
20-02-2025
- Business
- Euronews
Rio Tinto sees steady earnings despite lower iron ore prices
Mining giant Rio Tinto revealed a consolidated sales revenue of $53.7 billion (€51.5bn) for the full year 2024, a 1% fall from 2023. However, net earnings came up to $11.6bn (€11.1bn) in 2024, representing a rise of 15% from the previous year. This was despite an 11% drop in iron ore prices, mainly because of weaker demand from China, as its domestic property sector still faces major issues. Rio Tinto's share price dropped 1.5% on Thursday morning. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) came up to $23.3bn (€22.3bn) for 2024, a drop of 2% from 2023. Underlying EBITDA for iron ore came up to $16.2bn (€15.5bn), with the Pilbara iron ore production being 328 million tonnes. Underlying EBITDA for aluminium was $3.7bn (€3.5bn), whereas for copper, it was $3.4bn (€3.3bn) and for minerals, $1.1bn (€1.1bn). In 2024, Rio Tinto made significant strides at Oyu Tolgoi in Mongolia, with construction also starting for the expansion of the AP Technology AP60 aluminium smelter in Quebec. Argentina's Rincon starter plant also produced its first lithium. In a statement, Jakob Stausholm, the chief executive officer (CEO) of Rio Tinto said: "We continue to build on our momentum with another set of strong operational and financial results. Our strong balance sheet enables us to pay a $6.5 billion (€6.2bn) ordinary dividend, maintaining our practice of a 60% payout, the ninth consecutive year at the top end of our payout range, as we continue to invest with discipline. Optimism for the future at world's second largest miner "We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March. We will remain disciplined in the short, medium and long term, while paying attractive returns to shareholders." Rio Tinto's chair Dominic Barton said in the company's 2024 annual report: "Rio Tinto is optimistic about the coming year. In 2024, we laid out the pathway to a decade of growth, gained clarity on the portfolio, and ensured we are in excellent financial health even as we execute more projects worldwide than ever before. "Even with more global volatility, the underlying drivers of population growth, an expanding global middle class, the push for more localised manufacturing, artificial intelligence, and the energy transition continue to underpin demand for what we do." Analysts say results illustrate the company's resilience Commenting on the results, Maurizio Carulli, energy and materials analyst at Quilter Cheviot, said: "Rio Tinto's FY2024 results are broadly in line with expectations, and the company has provided a steady outlook for the future. It is reassuring to see that group earnings (EBITDA) decreased by only 2% despite an 8% fall in iron ore prices. This resilience is a positive consequence of the evolution in the earnings mix and Rio Tinto's defensive characteristics. "Net debt has increased to $5.5bn (€5.3bn) due to acquisitions carried out in 2024, but it remains at comfortable levels. Looking ahead, Rio Tinto is guiding for a 4% volume growth in 2025. Management has indicated that its two largest mining projects, Simandu (iron ore) and Oyu Tolgoi (underground copper), are progressing well. Additionally, the acquisition of lithium producer Arcadium is expected to be completed next month. "Rio Tinto boasts a solid portfolio of assets, primarily positioned at the lower end of the cost curve in iron ore, copper, aluminium, and, since October, lithium. The significant barriers to entry in iron ore and copper, due to the complexity and difficulty of developing new mines, further strengthen Rio Tinto's market position." Shareholders asked to oppose abandoning London listing Rio Tinto has been increasingly under pressure from activist investor Palliser Capital and several other shareholders to review its dual-listing model. The company is being pushed to keep only its Australia listing, instead of one in London as well, in an effort to boost its share price. However, the company's board has urged shareholders to oppose this proposal, saying in the 2025 notice of annual general meeting: "The Board considers that the resolution is not in the best interests of Rio Tinto as a whole and has recommended that shareholders of Rio Tinto plc vote against the resolution." This is mainly because of concerns of such a move being too expensive. Recently, other mining companies such as Glencore have also been reviewing their London listings, with BHP also moving its primary listing to Australia.
