Executive Summary

Q1 2024 revenue was $261.2M, GAAP diluted EPS was $0.01, and adjusted EPS was $0.06; adjusted EBITDA was $108.8M with an adjusted EBITDA margin of 42% supported by low-cost Argentina operations .
Average realized pricing for combined lithium hydroxide/carbonate exceeded $20,000 per product metric ton (APMT) in Q1, aided by multi‑year contracts with price floors and fixed volumes; combined hydroxide/carbonate volumes were ~9,300 mt at $20,500/mt .
Integration is progressing: cost savings on track at $60–80M for 2024 and global workforce reduced ~11% in Q1; management maintained the full‑year outlook framework and reiterated plans to increase combined hydroxide/carbonate sales ~40% in 2024, weighted to 2H .
Near‑term stock narrative catalysts: stabilization of realized prices above spot through contract floors, disciplined capex pacing, and commissioning milestones at Fénix and Olaroz that support 2H volume ramp .

What Went Well and What Went Wrong

What Went Well

Achieved strong profitability at cycle trough pricing: adjusted EBITDA of $108.8M and a 42% adjusted EBITDA margin in Q1, underscoring the low‑cost position in Argentina and the value of long‑term contracts . “Our multi‑year customer relationships and wide range of high-quality lithium products allow us to reduce the overall volatility of our earnings while maximizing the value per unit of lithium sold” .
Capacity ramp progressing: Fénix 10,000 mt Phase 1A fully commissioned and producing near nameplate; Olaroz Stage 2 producing carbonate with ramp expected through 2024–2025 .
Commercial strategy mitigates volatility: ~2/3 of hydroxide volumes under multi‑year agreements with floors/fixed prices; realized combined hydroxide/carbonate pricing of $20,500/mt in Q1 versus spot alternatives .

What Went Wrong

Volumes declined sequentially on spodumene due to lower Mt. Cattlin production; Q1 spodumene sales ~30,000 dmt at ~$920/dmt (SC6 basis), below 2023 levels despite sequential price improvement .
Large restructuring/integration charges ($83.6M) weighed on GAAP results and operating cash flow; GAAP cash used in operating activities was $(91.9)M in Q1 (adjusted cash from ops was $34.8M) .
Prices “slightly higher” vs Q4 but still down versus early‑2023; combined hydroxide/carbonate average realized pricing expected to tick down if market‑priced volumes expand and spot remains below contract floors .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$181.8	$261.2	$254.5
GAAP Diluted EPS ($)	$0.18	$0.01	$0.07
Adjusted EPS ($)	$0.34	$0.06	$0.05
Adjusted EBITDA ($USD Millions)	$90.9	$108.8	$99.1
Adjusted EBITDA Margin (%)	50%	42%	39%
GAAP Net Income Attributable ($USD Millions)	$37.7	$15.6	$85.7

KPIs / Operational Metrics

KPI	Q4 2023	Q1 2024	Q2 2024
Hydroxide + Carbonate Volume (mt)	—	~9,300	~10,800
Hydroxide + Carbonate Avg Realized Price ($/mt)	—	$20,500	$17,200
Spodumene Sales (dmt)	60,008	~30,000	~23,500
Spodumene Avg Realized Price ($/dmt, SC6)	$850	$920	$1,000
Net Debt ($USD Millions)	$64.4 (12/31/23)	$110.6 (3/31/24)	$253.6 (6/30/24)
Adjusted Cash Provided by Operations ($USD Millions)	$326.0 (FY23)	$34.8	$25.4 (6M 2024)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Combined Hydroxide + Carbonate Sales Growth	FY 2024	~40% increase YoY	Maintained in Q1 commentary; growth weighted to 2H	Maintained
Cost Savings (Synergies)	FY 2024	$60–80M	On track; savings to be realized mainly in remaining three quarters	Maintained/Timing detailed
SG&A (incl. R&D)	FY 2024	~$115M	No changes referenced in Q1	Maintained
Depreciation & Amortization	FY 2024	~$145M	No Q1 change; ramp to begin as assets hit commercial volumes later in Q2/Q3	Maintained in Q1
Adjusted Tax Rate	FY 2024	25%–33%	No Q1 change	Maintained
Growth Capex	FY 2024	$450–$625M (+$100–$125M maintenance)	Multi‑year growth capex ~$1.6B (2024–2026) reiterated; pacing disciplined	Clarified multi‑year plan

Note: Subsequent Q2 updates lowered 2024 D&A to ~$100M and narrowed tax rate to 25%–30%, and reduced capital spending range to $550–$700M; management also announced ~$500M capex reduction over the next 24 months and rephased Argentina/Canada projects .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Pricing strategy & contracts	Contract floors/ceilings and multi‑year take‑or‑pay reduce volatility; scenario framework at $15/$25/kg LCE	~2/3 hydroxide under multi‑year agreements; average realized pricing $20,500/mt in Q1; floors protect downside; more market exposure as new volumes ramp	Stable; slightly more market exposure ahead
Argentina expansions (Fénix/Olaroz)	Fénix Phase 1A complete; Olaroz Stage 2 ramp slower given ponds	Fénix fully commissioned at near nameplate; Olaroz Stage 2 producing carbonate with gradual ramp	Improving execution
Cost savings & integration	$60–80M 2024 synergies; SG&A and procurement efficiencies outlined	On track; ~11% workforce reduction; majority of savings to be realized in remaining quarters	Accelerating realization
Spodumene (Mt. Cattlin)	2024 plan reduced mining; Q4 pricing amplified by shift to forward indices/timing	Q1 volumes ~30kt at $920/dmt; lower vs 2023; cash cost just under $700/dmt	Strategically curtailed
Macro demand & supply	2023 destocking; 2024 EV/storage growth remains strong; long‑term prices need to incentivize supply	Q1: EV +20% YoY YTD; China +32% YoY; prices recovering from cycle bottom with stabilization above prior downturns	Demand constructive; cautious supply view
Regulatory (Argentina)	—	Court ruling seen as low risk to expansions; provincial actions supportive of investment	Low risk acknowledged

Management Commentary

“Arcadium Lithium completed its first quarter as a combined company…we have taken initial steps that will allow us to deliver on the significant value of the combination” .
“Average realized pricing of over $20,000 per product metric ton…prices have increased from the cycle bottom and appear to have stabilized at levels notably higher than what we saw in the last downturn” .
“On track to achieve $60 to 80 million of realized synergies/cost savings in 2024…reducing its global workforce by approximately 11%” .
“By the end of 2026, we expect to increase total capacity to 170,000 LCEs…over four times production levels in 2023” .

Q&A Highlights

Integration charges: ~85–90% of full‑year integration/restructuring cost booked in Q1; materially lower in remaining quarters .
FX remeasurement gains: not expected to recur at Q1 magnitude; exposure reduces as cash balances decline .
Pricing mix/outlook: ~2/3 hydroxide volumes under contracts; average realized pricing could drift down if spot‑priced volumes rise while spot remains below $20,500/mt; upside if market prices recover above floors .
D&A cadence: ramps as new assets hit commercial production late Q2/early Q3; Q1 was low due to timing .
Strategy on Canada (Galaxy/James Bay): intent to integrate downstream; willing to sell spot concentrate initially; evaluating locations/incentives for hydroxide build‑out .
Argentina legal: recent court ruling viewed as low risk to expansions; supportive provincial actions .

Estimates Context

S&P Global/Capital IQ consensus estimates for Q1 2024 were unavailable via our tool due to missing CIQ mapping for ALTM; therefore, we cannot provide a vs‑consensus comparison at this time. Values would be retrieved from S&P Global when available.
Given management maintained the FY24 outlook framework and highlighted contract floors shielding portions of hydroxide volumes, consensus models may need to reflect lower spot exposure and a 2H‑weighted volume ramp; however, without S&P Global data we cannot quantify revisions .

Key Takeaways for Investors

Contracted hydroxide volumes with floors and take‑or‑pay terms sustain realized pricing above spot; combined hydroxide/carbonate APMT of $20,500 in Q1 supports margins despite cycle lows .
Execution on expansions is on track: Fénix Phase 1A near nameplate and Olaroz Stage 2 producing – underpinning a 2H‑weighted volume ramp and 2024 growth narrative .
Integration actions front‑loaded: Q1 charges largely behind; majority of $60–80M savings expected in remaining quarters, providing earnings/FCF tailwinds .
Spodumene exposure is prudently curtailed; Mt. Cattlin cash cost (~$700/dmt) provides optionality while avoiding negative margins in low‑price environments .
Watch for mix/pricing dynamics: as more market‑priced volumes come on, average realized pricing could ease if spot remains weak; conversely, realized prices can reset higher if spot recovers above floors .
Multi‑year capacity plan (170kt LCE by 2026) and disciplined capex pacing balance growth with returns; ample funding levers (cash, FCF, undrawn revolver, potential partner/government support) mitigate execution risk .
Near‑term trading setup: evidence of pricing stabilization above cycle bottom, 2H volume ramp, and synergy realization are potential positive catalysts; monitor any spot price recovery and commissioning milestones for the next leg .

Data sources: 
- Q1 2024 8-K and press release: **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:0]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:1]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:3]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:4]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:7]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:9]** **[1977303_0001977303-24-000023_arcadiumex9913312024.htm:10]**
- Q1 2024 earnings call transcript: **[1977303_ALTM_3387246_2]** **[1977303_ALTM_3387246_3]** **[1977303_ALTM_3387246_4]** **[1977303_ALTM_3387246_6]** **[1977303_ALTM_3387246_8]** **[1977303_ALTM_3387246_9]** **[1977303_ALTM_3387246_10]** **[1977303_ALTM_3387246_11]** **[1977303_ALTM_3387246_22]**
- Q4 2023 8-K and call: **[1977303_0001977303-24-000004_arcadiumex99112312023earni.htm:5]** **[1977303_0001977303-24-000004_arcadiumex99112312023earni.htm:7]** **[1977303_0001977303-24-000004_arcadiumex99112312023earni.htm:9]** **[1977303_0001977303-24-000004_arcadiumex99112312023earni.htm:11]** **[1977303_0001977303-24-000004_arcadiumex99112312023earni.htm:12]** **[1977303_ALTM_3375850_2]** **[1977303_ALTM_3375850_5]** **[1977303_ALTM_3375850_6]** **[1977303_ALTM_3375850_7]** **[1977303_ALTM_3375850_9]** **[1977303_ALTM_3375850_17]**
- Q2 2024 8-K and call (trend context): **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:0]** **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:5]** **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:6]** **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:9]** **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:12]** **[1977303_0001977303-24-000028_arcadiumex9916302024.htm:13]** **[1977303_ALTM_3396950_2]** **[1977303_ALTM_3396950_7]**

Arcadium Lithium plc (ALTM)·Q1 2024 Earnings Summary