Arcadium Lithium Suspends Stage 4A Waste Stripping at Mt Cattlin and Plans to Transition Site to Care & Maintenance by Mid-2025
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.
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) ha annunciato la sospensione della fase 4A dello stripping dei rifiuti e degli investimenti espansivi oltre la fase 3 nella sua operazione di spodumene Mt Cattlin in Australia Occidentale a causa di prezzi in calo dello spodumene. L'azienda prevede di trasferire il sito in cura e manutenzione entro metà 2025 dopo aver completato l'estrazione e il trattamento minerario della fase 3. Questa decisione dovrebbe aumentare il flusso di cassa netto di 75-100 milioni di USD cumulativamente nel 2024 e 2025.
Arcadium Lithium non intende chiudere definitivamente Mt Cattlin e manterrà l'impianto per poter riprendere le operazioni quando le condizioni di mercato miglioreranno. L'azienda esplorerà anche la fattibilità dell'estrazione sotterranea per potenzialmente estendere la vita della miniera. Il CEO Paul Graves ha sottolineato l'impegno dell'azienda nello sviluppo del proprio portafoglio globale di asset minerari su roccia dura, nonostante l'attuale ambiente di prezzo non giustifichi la produzione oltre la fase attuale della miniera a cielo aperto.
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) ha anunciado la suspensión de la etapa 4A de extracción de desechos y la inversión expansiva más allá de la etapa 3 en su operación de espodumeno Mt Cattlin en Australia Occidental debido a la caída de los precios del espodumeno. La compañía planea trasladar el sitio a cuidado y mantenimiento para mediados de 2025 después de completar la minería y el procesamiento de minerales de la etapa 3. Esta decisión se espera que aumente el flujo de caja neto en 75-100 millones de USD de manera cumulative en 2024 y 2025.
Arcadium Lithium no tiene la intención de cerrar Mt Cattlin de manera permanente y mantendrá la instalación para reanudar potencialmente las operaciones cuando mejoren las condiciones del mercado. La compañía también explorará la viabilidad de la minería subterránea para extender potencialmente la vida de la mina. El CEO Paul Graves enfatizó el compromiso de la empresa con el desarrollo de su cartera global de activos de roca dura, a pesar de que el actual entorno de precios no justifica la producción más allá de la etapa actual a cielo abierto.
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM)는 4A 단계의 폐기물 제거 작업 중단과 3단계 이상으로의 확장 투자 중단을 발표했습니다. 이는 스포듐렌 가격 하락으로 인해 발생한 것으로, 호주 웨스턴 오스트레일리아에 있는 Mt Cattlin 스포듐렌 공장에서 이루어졌습니다. 이 회사는 3단계 채굴 및 광석 가공을 완료한 후 2025년 중반까지 시설을 돌봄 및 유지 관리 상태로 전환할 계획입니다. 이 결정은 2024년과 2025년에 누적 7,500만~1억 달러의 순 현금 흐름 증가를 가져올 것으로 예상됩니다.
Arcadium Lithium은 Mt Cattlin을 영구적으로 폐쇄할 계획은 없으며, 시장 상황이 개선될 때 잠재적으로 작업을 재개하기 위해 시설을 유지할 것입니다. 이 회사는 광산 수명을 연장하기 위해 지하 채굴의 가능성도 조사할 것입니다. CEO Paul Graves는 현재 가격 환경이 현재의 노천 채굴 단계를 넘어서는 생산을 정당화하지 않더라도 글로벌 경량 암석 자산 포트폴리오 개발에 대한 회사의 약속을 강조했습니다.
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) a annoncé la suspension de l'étape 4A du décapage des déchets et des investissements d'expansion au-delà de l'étape 3 dans son opération de spodumène Mt Cattlin en Australie Occidentale en raison de la baisse des prix du spodumène. La société prévoit de transitionner le site vers entretien et maintenance d'ici mi-2025 après avoir complété l'extraction minière et le traitement du minerai de l'étape 3. Cette décision devrait augmenter le flux de trésorerie net de 75 à 100 millions USD cumulativement en 2024 et 2025.
Arcadium Lithium n'a pas l'intention de fermer Mt Cattlin de manière permanente et maintiendra l'installation pour potentiellement reprendre les opérations lorsque les conditions du marché s'amélioreront. L'entreprise explorera également la faisabilité de l'exploitation minière souterraine pour potentiellement prolonger la durée de vie de la mine. Le PDG Paul Graves a souligné l'engagement de l'entreprise à développer son portefeuille mondial d'actifs en roche dure, malgré le fait que l'environnement de prix actuel ne justifie pas une production au-delà de la phase en cours d'extraction à ciel ouvert.
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM) hat die Aussetzung der Abfallentfernung der Stufe 4A und die Erweiterungsinvestitionen über Stufe 3 in seiner Spodumenanlage Mt Cattlin in Westaustralien aufgrund von sinkenden Spodumenpreisen bekannt gegeben. Das Unternehmen plant, die Anlage bis Mitte 2025 in die Pflege und Wartung zu überführen, nachdem die Abbau- und Aufbereitungsarbeiten der Stufe 3 abgeschlossen sind. Diese Entscheidung wird voraussichtlich den Nettomittelzufluss um 75–100 Millionen USD kumulativ in 2024 und 2025 erhöhen.
Arcadium Lithium beabsichtigt nicht, Mt Cattlin dauerhaft zu schließen, und wird die Anlage aufrechterhalten, um potenziell die Aktivitäten wiederaufzunehmen, wenn sich die Marktbedingungen verbessern. Das Unternehmen wird auch die Machbarkeit des unterirdischen Abbaus prüfen, um die Lebensdauer der Mine möglicherweise zu verlängern. CEO Paul Graves betonte das Engagement des Unternehmens in der Entwicklung seines globalen Portfolios an Hartgesteinsressourcen, auch wenn die aktuellen Preisbedingungen die Produktion über die derzeitige Tagebau-Phase hinaus nicht rechtfertigen.
- 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
- 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
Insights
The suspension of Stage 4A waste stripping at Mt Cattlin and the planned transition to Care & Maintenance by mid-2025 signify Arcadium Lithium's strategic response to the challenging spodumene market. This decision, driven by continued price declines, demonstrates the company's agility in managing operational costs. The expected increase in net cash flow of
The exploration of underground mining possibilities shows foresight, potentially extending the mine's life and preserving long-term value. This adaptive approach, balancing current market realities with future opportunities, is commendable in the volatile lithium sector. Investors should monitor how this decision impacts Arcadium's market position and long-term growth strategy in the evolving lithium landscape.
Arcadium Lithium's decision to suspend operations at Mt Cattlin is a prudent financial move in response to depressed spodumene prices. The projected
However, investors should consider the long-term implications. While the Care & Maintenance approach preserves the option to resume operations, it also incurs ongoing costs without generating revenue. The success of this strategy hinges on the timing of market recovery and the company's ability to efficiently restart operations when conditions improve. Shareholders should closely monitor lithium market trends and Arcadium's ability to optimize its global portfolio to offset the production loss from Mt Cattlin.
Arcadium Lithium's decision reflects the broader challenges facing the lithium industry. The continued decline in spodumene prices indicates persistent oversupply issues in the short term. This move by a major player could potentially help rebalance the market by reducing overall supply, which might support price stabilization in the medium term.
However, the lithium market is notoriously cyclical and this production cut comes amid growing long-term demand forecasts driven by the electric vehicle revolution. The company's strategy to maintain readiness for quick resumption is wise, but timing will be crucial. If prices rebound faster than anticipated, Arcadium might find itself at a competitive disadvantage. Investors should watch for signs of market tightening, such as inventory drawdowns or increased M&A activity, which could signal a turning point in the lithium price cycle.
As a result of these decisions, the Company expects to increase net expected cash flow in 2024 and 2025 cumulatively by approximately
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
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
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
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SOURCE Arcadium Lithium PLC
FAQ
Why is Arcadium Lithium (ALTM) suspending operations at Mt Cattlin?
When will Arcadium Lithium (ALTM) transition Mt Cattlin to Care & Maintenance?
How much will Arcadium Lithium (ALTM) save from the Mt Cattlin suspension?
Is Arcadium Lithium (ALTM) permanently closing the Mt Cattlin mine?
