Arcadium Lithium Suspends Stage 4A Waste Stripping at Mt Cattlin and Plans to Transition Site to Care & Maintenance by Mid-2025

Rhea-AI Summary

Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) has announced the suspension of Stage 4A waste stripping and expansionary investment beyond Stage 3 at its Mt Cattlin spodumene operation in Western Australia due to declining spodumene prices. The company plans to transition the site to Care & Maintenance by mid-2025 after completing Stage 3 mining and ore processing. This decision is expected to increase net cash flow by USD 75-100 million cumulatively in 2024 and 2025.

Arcadium Lithium does not intend to close Mt Cattlin permanently and will maintain the facility to potentially resume operations when market conditions improve. The company will also explore the viability of underground mining to potentially extend the mine's life. CEO Paul Graves emphasized the company's commitment to developing its global hard rock asset portfolio despite the current price environment not justifying production beyond the current open pit stage.

Positive

• Expected increase in net cash flow by USD 75-100 million in 2024-2025
• Potential for future resumption of operations at Mt Cattlin
• Exploration of underground mining viability to extend mine life

Negative

• Suspension of Stage 4A waste stripping and expansionary investment at Mt Cattlin
• Transition of Mt Cattlin site to Care & Maintenance by mid-2025
• Declining spodumene prices affecting operational viability

PHILADELPHIA and PERTH, Australia, Sept. 4, 2024 /PRNewswire/ -- Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium") today announced that it will suspend Stage 4A waste stripping, and any expansionary investment beyond Stage 3, at its Mt Cattlin spodumene operation in Western Australia given the continued decline in spodumene prices.  Additionally, the Company plans to place the Mt Cattlin site into Care & Maintenance after it completes Stage 3 mining and ore processing by the end of the first half of 2025.  

As a result of these decisions, the Company expects to increase net expected cash flow in 2024 and 2025 cumulatively by approximately USD 75 to 100 million. 

The Company does not intend to close Mt Cattlin at this time.  Care & Maintenance will keep the mine and processing facilities in a position to potentially resume operations when market conditions become more favorable.  Arcadium Lithium will continue to explore the viability of underground mining at the Mt Cattlin site, which could potentially extend the remaining mine life.

Paul Graves, president and chief executive officer, commented: "We remain committed to developing our global portfolio of hard rock assets and are confident that they will continue to be a significant part of Arcadium Lithium's growth story.  Unfortunately, production at Mt Cattlin beyond the current stage of the open pit cannot be justified in the current price environment for spodumene.  We will maintain open and transparent dialogue with all of our stakeholders while supporting our employees and communities in Western Australia during this transition period." 

Additional details will be provided at Arcadium Lithium Investor Day on September 19. 

Arcadium Lithium Contacts

Investors:
Daniel Rosen +1 215 299 6208
daniel.rosen@arcadiumlithium.com

Phoebe Lee +61 413 557 780
phoebe.lee@arcadiumlithium.com

Media:
Karen Vizental +54 9 114 414 4702
karen.vizental@arcadiumlithium.com

About Arcadium Lithium
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life.  Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom and the United States.  For more information, please visit us at www.ArcadiumLithium.com.

Important Information and Legal Disclaimer:
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. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium'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 supply and demand in the market for our products as well as pricing for lithium and high-performance lithium compounds; our ability to realize the anticipated benefits of the integration of the businesses of Livent and Allkem or of any future acquisitions; our ability to acquire or develop additional reserves that are economically viable; the existence, availability and profitability of mineral resources and mineral and ore reserves; the success of our production expansion efforts, research and development efforts and the development of our facilities; our ability to retain existing customers; the competition that we face in our business; the development and adoption of new battery technologies; additional funding or capital that may be required for our operations and expansion plans; political, financial and operational risks that our lithium extraction and production operations, particularly in Argentina, expose us to; physical and other risks that our operations and suppliers are subject to; our ability to satisfy customer qualification processes or customer or government quality standards; global economic conditions, including inflation, fluctuations in the price of energy and certain raw materials; the ability of our joint ventures, affiliated entities and contract manufacturers to operate according to their business plans and to fulfill their obligations; severe weather events and the effects of climate change; extensive and dynamic environmental and other laws and regulations; our ability to obtain and comply with required licenses, permits and other approvals; and other factors described under the caption entitled "Risk Factors" in Arcadium Lithium's 2023 Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 29, 2024, as well as Arcadium Lithium's other SEC filings and public communications. Although Arcadium Lithium believes the expectations reflected in the forward-looking statements are reasonable, Arcadium Lithium cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Arcadium Lithium nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Arcadium Lithium 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.

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SOURCE Arcadium Lithium PLC

FAQ

Why is Arcadium Lithium (ALTM) suspending operations at Mt Cattlin?

Arcadium Lithium is suspending Stage 4A waste stripping and expansionary investment at Mt Cattlin due to the continued decline in spodumene prices, which has made production beyond the current open pit stage economically unviable.

When will Arcadium Lithium (ALTM) transition Mt Cattlin to Care & Maintenance?

Arcadium Lithium plans to transition the Mt Cattlin site to Care & Maintenance by the end of the first half of 2025, after completing Stage 3 mining and ore processing.

How much will Arcadium Lithium (ALTM) save from the Mt Cattlin suspension?

Arcadium Lithium expects to increase net cash flow by approximately USD 75 to 100 million cumulatively in 2024 and 2025 as a result of suspending operations at Mt Cattlin.

Is Arcadium Lithium (ALTM) permanently closing the Mt Cattlin mine?

No, Arcadium Lithium does not intend to close Mt Cattlin permanently. The Care & Maintenance status will allow the company to potentially resume operations when market conditions become more favorable.