Arcadium Lithium (ALTM) 22 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the Fourth Quarter 2023 Earnings Release Conference Call for Arcadium Lithium. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer period.

I will now turn the conference over to Mr. Daniel Rosen, Investor Relations and Strategy for Arcadium Lithium. Mr. begin. may you Rosen,

John, to you, for and Thank everyone thanks joining. Great.

that President today made Financial call. Executive presentation in along the are our be me be section Prepared release, and our Officer. our earnings with Paul slide Investor Chief Joining will found Antoniazzi, remarks the Graves, Chief from available can discussion results, after Gilberto Officer; The of Relations accompanies website. and today's

questions. our available your Following remarks, to Gilberto Paul be will prepared and address

of the caller. and on we request number today, the question Given one a participants one will call limit of per follow-up

We any call. the happy will be to additional questions address after

we Before best the but Securities to, and presented those subject me are to with today's that various our Information represents other our factors risks filings on identified information. not discussion limited in based concerning you Form including, will begin, and XX-K and forward-looking factors, that let include Commission. today's statements uncertainties judgment Exchange remind specific

upon on uncertainties. Actual of vary risks various well website. GAAP presented terms financial financial in metrics. calculated the directly measure Today's references Relations provided include accordance comparable as results to as most based are discussion these reconciliation Definitions will our and to Investor non-GAAP may these a with and

And the with that, call I'll Paul. turn over to

producers excited building to chemicals. focus and on We're year. one the between this continuing Livent merger Dan, leading the of lithium as X to the first on a following of of close X earnings begin with as organizations highly operating This of Arcadium you, Lithium, global complementary of hello, on Thank grow strengths the is Lithium and everyone. official call for the Arcadium January Allkem

the volatile merger storage remain of have transaction been in since of as underlying the lithium and May market strategic as strong dynamics meets While ever. our energy last year, announcement somewhat

we have of integrated better producer lithium and opportunities even chemicals and to market of integrated As diversified, to take across the growing meet the needs more ease a flexibility alone our all to advantage positioned of we're larger, available company, diversified, customers, vertically companies a greater cycles.

volumes and growing expansionary its highlighted carbonate expected is in XXXX investment. increase as volumes lithium is combined to result XX% compared Lithium company. by of Arcadium years hydroxide as an significantly In of a multiple XXXX a

Arcadium addition, $XX In million $XX savings to XXXX. synergies is of and to expecting total realize in million cost

combination environment. year, savings into go are the lithium we Livent of volumes Allkem. higher than cost that detail will integration our these Lithium's price savings the These the initial in and as are which first Arcadium a developments we for by a accelerating further in components of full actions different and but or format efforts We the providing a current cost in certain outlook major of on are result driven reductions, positive by provided historically are reflected either providing scenarios from

not production. price synergies capital projects the us provide leading Canada discuss its to will and future also as review operational with the Argentina lower its to under will plans projects or Arcadium the Allkem flexibility Livent impact XXXX expansion in It opportunity lines of to is as slow as to commitments. of of environment the the ongoing in extend to of our customer further. This spending volumes undertake existing a maximize The comprehensive from in capital time well some ability co-located from optimize an order our available deliver expansion will and we reduction existing for pace growth

to call turn now will I Gilberto. the

Thank you, Paul.

Slide Turning X. to

after under Stock XXXX year-end the CDIs, shares Our Exchange by operations. historical depository trading the exempt XX-K our this Arcadium or Livent ALGM. be Arcadian of merger foreign merger listing vote New approval lithium to ticker shareholders. of following and the ordinary on [indiscernible] are the ASX York closed the from under year In only closed earlier Livent XXXX, will results Allkem both trading is LGM. include the the on instruments, ticker released Because Lithium

that combined and the a for revenue XX, with full roughly XXXX can this $X At of $XXX cash as billion have combined net approximately Arcadium of year of we combined of million balance cash $XXX XXXX. that time, of share million consolidated December

in first XXXX. results pro We forma calendar expect for released beginning and combined the provide second the quarter to new year the we quarter XXXX of financials 'XX, of company early with

disclosures. in reason, previous year performance this fourth the companies discuss stand-alone consistent will for we XXXX formats and quarter full For and a basis with both on

Starting EBITDA the revenue and with adjusted fourth per million, on flat sold Livent EBITDA adjusted Despite environment diluted roughly lower were lithium average earnings quarter, $X.XX of margin challenging million an across lease-to-market quarter of prices addition Livent slightly Volumes reported Slide of adjusted $XXX all in realized in fourth to products costs. a higher X, of XX%. $XX achieved share.

improved result lower over year versus a is reported XXXX. record million highlighted EBITDA XXXX, year XX% million, $XXX full Livent. overall of This higher meaningful earnings XXXX costs by Livent margins prior adjusted all for and $X.XX adjusted of results full adjusted were of EBITDA XX% and net of These of and increase of income diluted and was versus average the EBITDA share. year per of $XXX the adjusted and revenue and XX% an improvement growth For pricing

Olaroz price average Slide with tons carbonate at revenue sold per metric on metric over Allkem X. total quarter facility year X,XXX to $XX,XXX to On calendar a just compared XXX% $XX metric of production just ton. fourth of realized of ownership tons Turning carbonate an achieved under million, of basis, X,XXX the

at were with year. year metric revenue full per million, average realized of metric price production full total for $XX,XXX in tons sold XX,XXX an was Sales XXXX, $XXX of ton. and the line carbonate the For broadly

approximately of The price specific reference the equivalent X Mt. across the in by to per revenue shift with the forward-looking roughly tons the occurring spodumene in X% amplified spodumene of $XXX quarter average timing the million, spot metric the a operation, industry shipments For seen dry fourth all market was price Cattlin mechanism X.X% a particularly factors: ton. half metric the was challenged. sold customers, $XX quarter at price and with consistent decline when XX,XXX with was quarter fourth of dry the with grade second spodumene shift realized

an From and operations both quarter. improved slightly perspective, production grade prior recovery the versus rates

carried equivalent For X.X year with sold the to roughly spodumene metric metric X% full million volumes higher our revenue of production at per brings metric XX,XXX dry dry were price this a year and sold, year, average ton. was tons levels. inventory dry $XXX than under tons XXXX, spodumene Full normalized just spodumene roughly to $X,XXX was XXX,XXX into more grade which

This of opportunities. spodumene comes selling to focus [indiscernible] notable lithium market provides was commercial The one for largely to decline over the company to the the we areas Arcadium at of its investments having making especially when basis. to prices challenges in predictability multiyear key and reference fourth of investment cash look it implement price as access The will allowing also needed attractive take given market a the that strategy advantage be swings significant while these integrated support greater on periods, of commitments. Allkem to volumes an carbonate especially in capital resulting revealed quarter's notable profitability practice

turn I to the back provide commentary. Paul will now call market to some

the in aggressively like XXXX. anticipation more what storage we influenced producers clear China by was increases had hindsight, demand many in cells. in provide The build the battery lithium the energy and of chain. on X, increased subsidies. production of lithium, some Slide I'd Thanks, quarter elevated in fourth to supply inventory of Became most were in battery prior market that In XXXX, Gilberto. seeing expiring downstream cell saw notably to heavily in the in year inventory On meaningful perspective especially

drove As lithium result, as rates starting late prices a activity quarter. contracts spot cathode production declined and the fourth volume in and and significantly. both cell a sharp beyond in decline accelerating in the progressed base XXXX market lithium QX reduced purchase producers This

some with overly EV bearish a lithium their decline OEMs U.S. perhaps storage. from optimistic energy around notably in markets, were especially the sentiment the negative who Given well price as ended year with headlines earlier forecasts, and as

market were China However, sales in taking XXXX XX X strong XX% roughly global the million approaching a year, year. it's was to demand underlying of actually monthly all-time units step for month-over-month. back, December, hit on recognize end an XX% penetration. XX% up that XX% EV units was last up around million a which very and important high year-over-year

storage lower from lithium the energy demand stronger lower in market cost to stationary come environment. battery supply and incremental did cost not And ion Additionally, enter in to lithium this a upside XXXX, while should the segment it expansions. mainly growth did in continues brine be surprise

And of development first high be challenged seen in supply last and assets current price known and a spodumene by China. predominantly price market how Africa it environment was to way. these incentivized The that production, some is in the in of it below to new materials The they're the lithium of the they cost still number long out assets their the continue of remains lower in cost cash halite there's the of operate in in these prices or while run-up, economically can cost a seen at was higher higher this are environment. that is doing and so to operating, even be

comes to in the when further these We it as future. see also assets most challenged expanding the output

to reasons optimistic XXXX, first half the be industry. the our direction a of about number there into Moving of of are

others making like decisions. current we, take when industry, into to account in capital However, the allocation environment our need

that the than it economically And in are have these in prices whether support be will, We expansion prices confidence multiyear fact, investment sustainable reinvestment market there when lower viable. to look needed are to prices, decisions. prolonged reduces of periods at

in they that We to future sufficient meet future, the move will incentivize order higher to our believe to customers' needs. need in do expansion supply which prices

more on we for earnings much the When balance these to volatile manage flow. given to challenging sheet we prices direct very environment have projects our periods cautious how such of use see impact levels cash is today, the we it be fund and price extended However, through capital-intensive have to in we expansions. our

in that these stay greater shortfalls. projects, current future be It impact brownfield few very sense prices. market supply expansion most expansions the the will is economic on clear near And prices the make at lithium the brine longer including levels,

although the this in timing the at XXXX, and likelihood increase in rapid to of difficult complexity of global chain of predict. the battery point an saw will future, the lithium both increase such as in the prices extent a increase supply some we As

project We from response and operators alike. seeing both a are existing developers

to Some have higher come trend market, the we and started this expect continue. to cost production of out

come have seen challenge for appetite the lenders, on financing rely expansion projects prices, investments. Additionally, have especially more discipline to the multiyear assets is applied development the at preproduction lower these return sources, reducing volatility hurdles heightened many single-asset we being companies on. towards price from

a typically at New cell expected is cell continued should the off to demand There in cathode use the are of Lunar fourth downtime, seasonally support destocking few the level. Year This year, months coming many quarter. the year, the which help to first and slowdown in extended battery for strong period holiday regional producers

XXXX growth as demand We're of still a models more market. seeing far concerned, affordable the As is number growing are expectations entering strong. EV

up annual NEF global battery reach hours, XXXX. XX% versus projects to Bloomberg demand X.XX terawatt

its the material total be recently billion $XX investment at longer-term highlighted old Toyota to and by billion deal to active its This continue to North a the to in EV most bringing Inflation support support driven made secure downstream in Additionally, U.S., $XX investing the Tennessee agreeing billion. with Reduction $X.X to America in plant additional Act. investment by and site commitment GM supply Kentucky, cathode commitments is

for demand time total It's with demand not for lithium over occur will also growth that chemicals growth The even for that continuing if, and now, mean predictable. growth important not which fundamentally to terms chemicals year-over-year percentage in saying we've a long-term volume of to been not do lithium reduced necessarily meaningfully. necessarily reduced rates, increase linear undoubtedly electrification has is emphasize trajectory as while of tons changed,

volatility be as aggressive of of of to predominant energy the periods supply there production and the China source demand location bulk continues the long the to and storage, be destocking. of followed by As will chain

X. growing volume a be Slide will result of to Lithium sales Arcadium years in multiple of XXXX Turning significantly expansionary as its investments.

lithium Salar combined XX% carbonate to We on metric at by the LCE customers XX,XXX XXXX tons in result is midpoint a both existing expansions of at at roughly an respect to which at Argentina. basis. the this to our are delivered the of is the With increase carbonate, Muerto, Fenix, ramp-up hydroxide and and our lithium in Hombre of operation expecting del Olaroz,

production ramp-up underway. XA and the the At Fenix, expansion process metric XX,XXX is is ton well complete, Phase

up of operating tons we the X,XXX run of XB capacity production rate This Fenix. status metric ton XX,XXX year nameplate volumes. this per have shortly. will XX,XXX the to to expansion the of expect and to from tons metric of expansion total means We achieve I address in at XXXX year finish additional Phase will metric

For X late in expansion, of ton in the where ramping XXXX. process Olaroz, up we Stage was metric are XX,XXX completed a construction

a process, this take DLE-based As production. than ramp-up conventional longer PON-based will Fenix's

XX% We rate expect X from Argentina's carbonate carbonate the completion production tons. total and XX,XXX or multiple end at of of expect reach Arcadium up which from metric XX,XXX hydroxide stated benefit capacity to production to tons Stage over also run capacity produce to will by is of XXXX. from This feedstock. will bring of to all lines, rose the metric

U.S. Bessemer X,XXX metric Carolina, total expansion in City, metric expect capacity volumes to our We operations deliver to North a XXXX from our U.S.-based ton hydroxide bringing XX,XXX tons. at commercial in

completed of in we ton at through capacity new at will end a total the brings XX,XXX and our China XXXX. in which metric Zhejiang tons. Additionally, in qualification up unit location XX,XXX hydroxide in province This metric to of go the China, XXXX, a ramp

are at low spodumene plan result Mt. light optimization Australia, reduced price mining This XXXX. be Western versus calendar cost part lower production our operations to environment of production and to XXXX year in a in a spodumene. current expecting Turning is Cattlin pursuing efforts in of the as of we

year to now discuss back will to XXXX turn I outlook. our call the Gilberto full

higher sales on you volume a of our LCE major increase to by an we in translate volume XX,XXX range XX, Combined at Slide and products. basis around by to hydroxide expectations growth carbonate On XXXX XX% sales, see Paul. into than tons volume our Thanks, metric the expect sold XXXX can midpoint. XX,XXX or

and the carbonate The while will will Stage expansion. multiyear or Most feelings hydroxide, agreements. revenue. expected including our as life Within as X subset group overall our sales be have the product Fenix XXXX to only by the agreements sales of come a These fixed stores limiting potential firm upside reduce mechanisms, production, with volumes. enter agreements are into from to customers a over volume downside commitments volumes we have core of of prices volatility additional from well of the hydroxide total of variety of for incremental the to lithium select Olaroz X/X help some pricing or fed and roughly on opted our total

of on hydroxide be the remaining of move typically well lithium sales As basis with references. volumes that pricing monthly as today, set shorter-term our under carbonate the portion to market as a are structures expected agreed

We and into of specialty which is based is or typically lead spending Pricing taking lithium business, flat negotiated quarterly, comprised to broader are monthly in is in volumes relationships, butyllithium years many customer metal. the high account the mainly movements market. expecting and on

lack Because with demonstrated Cattlin Lastly, our sold more of of prevailing today can limited concentrate production prices. plans at the respect market particularly given being today, we the year. Mount remaining are be China life to longer-term of flexible mine to out this as directly sales spodumene largely commitments,

On Slide considerations. have XX, provided modeling we other some

will SG&A multiple shortly. the We And begin and and for when of is than of been therefore, historically. Depreciation will first This be capitalized spending depreciate. is spending amortization has expected address higher expansion being production to a seen what XXXX year assets. result capital to

between than forward global of provider rate brain stand-alone historical will in as businesses would expect adjusted the levels expected range we integrate an of important point for model this stage The as XXXX reflect is further focus business. we moving be to to order and X tax The is work. earlier of a wider be the our

the is higher $X.XX notes our dilution outstanding diluted convertible fully exchange ratios function on billion assumed shares is of of of of a estimated merger million Lastly, outstanding. and inclusive $XX.X company's the

$XX production. million lower realize These On cost million a benefits update of Slide a cost driven will expected reductions an XX, for reduced to SG&A Lithium. combination is total expenses combined the on be and $XX of Arcadium savings. XXXX, and expecting provide company by cost In to we synergy the

the come savings consultants. predominantly Within lower headcount T&E from third-party of will services overlapping SG&A, and reduction, elimination and

sales, For term number chain production longer multiple ways potential immediate manufacturing in to have we identified from operating across This for supply globally. particularly input located closely network. cost all a procuring to costs of and at of all our major key of efficiencies includes aspects global drive assets items, our streamlining lower footprint, improving sites

number of going drive continue efficiency forward. We a for to expect years to

expectations Our cost the are at XXXX announced. merger for our higher time than savings were they

see the initial our announced been But expected of accelerate Longer this outlined, wherever changing number confident brought we of and discuss back now also possible. in the immediate synergies cost reductions to more than at and has scenarios. a Some markets. term, pass will by are remain outlook them the we our what and work we Paul forward previously to time call of available. opportunities in the there we the conditions to school from the look I will integration of merger grow

Thank business a performance understand we prices XX, Arcadium framework to Lithium's financial changes are in of where it of Lithium did Slide traditionally On mix market may XXXX. providing is you, go and since what much impact the in us the Gilberto. Arcadium earnings prices extremely current how Livent the give for during so now makes year. to guidance outcome dependent difficult on market

contracts our our that not business work nature recognize volumes Arcadium on by simply our specialties also the of does has given price and impact multiyear other performance. multiplying for We Lithium market the

expected kilo savings and have peers keep presented of For basis. existing consistent have volumes, market SG&A kilo LCE We applicable. on recently, how X sales assumptions namely price and cost XXXX, using we per overlaying while synergy $XX shown lithium agreements scenarios this for the per constant $XX our commercial and an with reason, are midpoint that as

be likely prices. as should a With prices, They to were a XXXX interpreted scenarios that of you earnings of These at potential our range lithium as which not by selected that Lithium in they investors range lower to resilient, our Arcadium price are allow Lithium's per will $XX remains assess not. assets, solely forecast the Lithium low-cost production case absolutely significant said, by its take even average and a volumes. place. per price market-based should a on rebound, where a business quality highly Arcadium supported LCE upside Arcadium fact, kilo achieves offering while in see

expects spend additional million million $XXX Arcadium $XXX Slide growth with of Moving to to spending. an in spending XX. $XXX million capital to Lithium million in maintenance XXXX capital to $XXX

For growth projected separately last lower what spending, this year. is than Livent

in that are superior We in and is projects industry. with our the quality our a portfolio we attractive asset of have still growth conviction of investing pipeline believe unmatched

of However, generation spending and accordingly we order are our adjust environment, in lithium different, cash our lower flow returns capital this in maintain discipline. financial pace to on pricing and investment quite must

environment While while believe with have representative more to on are conditions we this do the long-term far price in today's that cautious not we of our today, run environment based being spending means we the is and business prices, persists.

spending, As projects be Livent have optimize discussed, overlaps. natural of to Allkem by major capital and term. better we longer merger And that derisk between is the the previously off will and we of believe benefits one slowing we the opportunity

Quebec. our across spending Over capital both expansions drive on few Argentina accelerating the lower quarters, work to ultimately overall the will and the next efficiencies needed capital we and focus in

operating globally the strengthening these focus future closely a to assets, supporting located our production of network. expect we flexibility Additionally, integrated improve on

Fenix the and Argentina, the each in in other closest in to portfolio the Nemaska of Bay within roughly del mine expansion Vida XXX at Sal Muerto from kilometers Quebec, Bay. Salar our XX the with located projects in projects projects each located Canada, and Whabouchi same other. Lithium kilometers The James And James are de proximity Hombre

online production in to XB expect metric $XXX million Fenix million been bring what lower we second $XXX half capital of Based Phase ton XXXX. to We to would X XXXX to XX,XXX Sal we first these and projects deploy in production by the on is spent up the into Argentina expect This from achieve what of this know by to expansion growth than months. Vida to today, have carbonate of delay XXXX. of de

construction $XXX hydroxide the James deploy received, to capital facility will in engineering to approvals primarily $XXX permit progressed. Bay towards going and We in million million being of which expect Lithium definition has been the Becancour. resource of be have XXXX, developed Nemaska and been Canada well at

and expectations we to to chemical our downstream However, with production flexibility future lithium be over with vertically time. take time want Whabouchi, the explore both efficiencies development to potential for given integrated operational

we compared delay for Whabouchi timeline not With not merchant to XXXX. should it the which of to Any prior sell until require was Becancour minimal hydroxide potential said, means that feedstock to spodumene expected impact like expected our production, volumes would expectations.

the our comprehensive on focused to Lithium Arcadium of few next provide and and the are for months plan intend a rephasing over optimization to year. expansions We investors this later

to would strong we building our responsible commitment the to new sustainability companies the like the targets on shared legacy business, growth. Additionally, profiles X for introduce and of

this go market proven period While process, the ultimately which through. merits the not we to difficult out strategic and and will a we the whatever believe of cycles to in have over and integration go be transaction is changed, time future long-term through unpredictable

back Dan call to turn the for questions. now I'll

begin you now Q&A Great. the may John, Thanks, Paul. session.

[Operator Steve ISI. Instructions] from of line Richardson the comes Your first Evercore question from

you nature in to XXX that talk the terms Could of considering In kind fixed number the the right and asset? why cost of year, about high relative life you just going answer XXX optimization evaluation mine even of and mining asset. the to lower mentioned and the script last an obviously, of remaining costs, wasn't

first Sure, We Steve. the seconds. missed XX

you're I think Cattlin. about talking

period a plan. team. look through from back it you mine historical of very as in today what of a in investment towards low is, and hugely life. mine. phase of if go mine production that the very its Look, very a you much end So benefiting I Matalan was is went at the the think unproductive interesting Essentially, It's asked. it an frankly, I gist think the It's data,

remaining of and any And it's the the high productive curve. in cost not of low it's a life reasonably production. a produce of cost while production able of team. fact, pretty case, actually marginal on average cost kind mine is And that's to today, Today,

And essentially point, the will decision see get might be Now in to to that next it's phase ourselves highly to we how some to reinvest stripping give slowed forever. of at a body. productive down not to as market whether develops. the made Frankly, sustainable in it to have low-cost, ore order time to

all we made that restart this a decision end it think ever know I is it's in unlikely features mine that it mine is life, again. stop of before of if to to

to And we've so the and running margin. a we're very taken the down. not this the optimal of sensitive at negative don't that We're level, to an year. is in There case operating production production that. We expect business assets be

lower, We once could, but less does it it of course, lower become much down take efficient much we get line.

do revisit right further either at today, back revisit to it prices the look to recover Mt. if not what to further, reserve fall if for production least recover what optimized going we'll we've ramp Cattlin. then that's the up than again prices right We they're for. is So plan any or like

the example, contracts nature just optimization this those around new more better could that contracting little with And you more to you the a volumes. a that talk Slide in business moving, I towards of XX legacy bit agreements for multi-year in in market for your is customers? of which One, needs really had is something your out you're helpful a something we follow-up, volumes. that the of expected of environment that philosophy, your from over do you have type terms a wait and volumes wonder breaking about if and envision to sales as working carbonate actively happen hydroxide of time? or is live that

could then more. just And one in if sneak I

you your those do time. just from it's one to because could floors on contracts time investors your we question with about and talk floors get in your customers your confidence from If exercising

And question. under the no flows be in think the today's a of to always special going at in confidence environment. I all whole far sign Look, close very a there's seeing I in being of reasons. confidence very, have Yes. as bunch market high I'm

going structures. hydroxide make we lithium what we forward, what now, today contracts that own happening see has happen are we've What within an terms I a that seen for view similar is have been question. customers while quite and interesting of hydroxide-based to And terms its same for done on does itself size lends customers with for do power actually carbonate. My around hydroxide is own evolution higher sense. And conjunction have the the seeing when of contract, allow what also I where carbonate to go we're of look, reasons. in contract it But don't we In more contract structures a lithium for bunch long-term it's in are a expected think X years, the product to expect Livent flexibility. to least of who contracting on at an desire

as to the carbonate so is produce into least go done And that at just expect hydroxide we Fenix have from more before. to we today, would it would do the see what of network

a of be portion lease in met to that to terms. degree a that carbonate then lithium have of contract that contracts And allow by supported

sensible And lot there. as not the customers. X desire So probably was battery technologies, ago. by contract year are why there's with it customers in stronger is clearly, flows automotive a if a of than way of part and compensations strong, the ceilings, moving greater that The with LFP or today to to this mid-nickel adoption just

not flows than see were X or today are conversations at the frankly, different happening year ago. are a they and And that

longer-term engaged market. thing them maybe have to view with little one are think that that I a we and a found customers is of most the self-selecting here, tend of that the we've

$XX And thought be commitments lithium what on $XX based the consider the price they longer-term nobody the pricing. just the nobody gives are And making as fundamentals so either. over was more price, cycles of right right they comfortable to

question of Glyn comes next Your from the line from Barrenjoey.

Paul, spodumene the ask more you're thinking little if around Canada you could bit with put some a what X operations. I about can and color just

you that maybe physically perspective or So are thinking combine that? about a you're physical you can just is how talking them more from

areas. Multiple

you not as Nemaska by think Arcadium. Lithium owned I is XXX% know,

take optimize it So we sense have agree into possible as to how both partner that we a to develop makes But as model. we integrated much account. an

And X so of single feeds hydroxide consistency of a benefits the feed, into of what the are a question there's a plan, reliability of longer-term feed. having

in certainly do ultimate hydroxide and possible those a And longer downstream in for we're of into mine what taking longer-term the the question footprint. mine the challenging them we concentrate Whabouchi term from James such the us. engineering about looking can that manner and Bay feeding we're so most with both That's efficient

be in there's think relatively basic stuff, term, to short honest. the some I

don't think I mines far the think are there's way that think integrate we attempts about where going to important to we is can, I mining. it that standardize that that But physically be X we apart.

and Something inefficient fleet contract think with who with, how part a simple we there's I staff. mean making sure as as the a about world. pretty we mining we're optimizing that not remote being of

But de Whabouchi where a unusual one is absolutely with in well probably place We're as say and as we it's Vida magnitude It's yet. there or don't I and the in there but to that that not how the for sort they're likely the engineered. not engineered, fair some better well Argentina selling in have permitted, in same about very further support So think go. to Sal are but services in all that ready moment well. and Bay think of an we permits be go. James advanced efficient synergies is with I'm areas, savings we suggesting thoughtful the to

at So different we have resources X different development. of stages

are opportunity fantastic of sit to what a development for just it's both to clients. plans so the those down trying optimize and And

side. recover back And about us the that Just at you'd up etc., look about scaling to question, achieve should that last think if given then year? what this which is You've 'XX just 'XX, contracting, for some carbonate, Is can but a follow-up ramping about for wondering prices on business? in got I the you those have thought when like to numbers maximum you just for anything Olaroz, chemical there be, hydroxide just you you've flex talked you throttle guidance carbonate faster. or would the I the volume back the if talked

to itself seem particularly. back No, has easy are. to process think not make historical Olaroz based quick because to for to pump needs it's changes a I they issues process up order to systems be to we're manage people on and I in to that of ramp absolutely the think bunch it side. continue many chemical out as everybody, at least make on a output. think needs maintenance Look, not some learning swapping it or for The are going

it's market important one absolutely also the outlook think future. what to in Two of that, to not XXXX do reasons able those important that was the Olaroz for all a of grade representative technical I which of up is understand in of likely to maximize by is doing production. pricing quite so it that, shows didn't in between The and X. go capabilities XXXX really differentiate rightly from the perspective, the meaningfully. And

get not will carbonate premium, technical math, product same the do battery grade doesn't you when decision. today, the we're getting that or or is justify into Looking

And plan to flow material, that so more purification that running get of an back but we the has more raised circuits be they'll process unfortunate grade absolutely the sheet. consequence

I brine operations. funds the it while feed Phase benefits factor X one is that the take they X and from Phase those year, of able into second them to, think constructing to some of were benefited last concentrated of all the the the

again, output. that So white they you had all online. had better do those of they a Again, you bring yield, when can't X

that about today we year. calendar a we'll have is volumes at We'll of of operating expansion estimates that higher those be get regard by X that back there's XX% best the but no the to in phase. happen carbonate stuffing in much obviously the Argentina. roundup So productive end still of early than in with rate all production very No, year, we're the

Next BMO. Jackson from question the Joel comes line from of

Let me by couple one questions of one. ask a

short-term a question first. Just

in this to March order earnings, we product do sense So hydroxide through you So already have right priced in? visibility locked months. much through several you've given was now? have us you like a some how for give you around year? How April? how of much the the Maybe your locked in book most much said, are across for Obviously, sensitivity much price, you've that

we're depends looking. really on It where

take-or-pay. the agreement scheduled are -- well the think the full They're very majority all These multiyear year. I done hydroxide is volumes. clear, certainly for well-planned

the what have some of it on And is timing very clearly, So to don't visibility variability of still it. some on because good that, ceilings. know I the it from all of of is floors we price it starts and around

for opportunities of some certainly that there's So volume. upside on

to volumes, conversation pretty qualifying have qualification company we're again, as we plans that, uncommitted When reasonable to do their the On process. the go good a demand with tend are. We we into the what visibility.

on a It's The So business pretty and a volume. good complicated. largely on has more again, visibility basis. we month-to-month bit that's that carbonate, little lithium sold that been have a

a no I is going or It directly not is technical-grade doubt into It into that there. product. battery primarily have applications. typically not is the demand

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you sure largely other the On in. out know I'm they're sold constant specialties,

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question Then but visibility, to also is question. on my going be second different, open little

So X be one, making right are a thoughts inventory China. and X can and of industry maybe it now all a on on data, seems of plans other decisions lot data. everyone's in you over of suppliers blurriness comment, or People data, bulliness to relying there's like what seems

indices how not changed. it's lot this on So based there's on figures about have a that's that indices, these contracts fragmenting then now indices different And on that. of liquidity the we're coming seeing all these indices, pricing

we do that? how navigate Now,

that I in it ever various forms. think industry Look, it's decade seen Yes. most have been I've the more in or in opaque this the

think I of reasons bunch that. for there's a

some of have, think about supply They're the than customers thinking of is manufacturing we between battery some differently bigger more they're locations. particularly it I the shifting chains have much gotten technologies. about, different that complicated

a we capital into typically qualified different directions their us with we're see customer, multiple change. OEMs this movement. major And the see supplies We see producers. different places, into We directing as

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delivery, lower-grade it's people has been particularly successful physical We've material those that's sat contracts those certainly the a on though very a of quality struggle been that even not material small in use. under contracts because to seen product in volumes there

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the Your next comes McCutcheon Citi. from of line question from Kate

Because much I'm a is for with scope than I pricing not if basis. Olaroz than at, are an but is better peers for your timing typically, pricing to or of Allkem that is those I tonne peers, on spodumene at December spot December about to Realized look have X,XXX. reported. better and example, seems for lower business, realize of pricing there contracts of And below shipments? $XXX be the reporting Olaroz. part guess, expat realized realized versus indices SCX looking Peers And Cattlin I end would is it to big top the X,XXX have at down do a

interested what's changed So in there?

Allkem. a you Yes. know, pre Look, as that was That close. was

performance, back or QX figure either out say myself. back have fair you're figure the think go out necessarily it's that it wasn't Compared those I with in of to to and historical to to performance X have and I Allkem's areas. right. had absolutely go I But So strongest

reasons. a small in think spot think bunch volume for I I and concentrate, a the it's relatively shipment of whole

as It or were in went the the on pricing and an quarter NplusX an to month they they basis in basis. in a pricing from pricing also out even lagging particularly really basis earlier maybe late shifted where immediate the and year shipping

do. will that as also price a it falling in environment think I accentuated

the in they to increase think were significant just [ volumes I ship. challenge was with of that Olarz ] trying a first all

sold And think harsh judge, do a history in is price but question in made at also the Again, significantly just they others. back time, grade. any falling why of than notice that be that to environment I they the that into the moderate more again a You'll technical valid quarter there's this volumes can doesn't holding hindsight. decision

technical-grade as think less we've weakens, seen I and market before, this demand. is in the product

and goes customers quite environment, more technical then a the tight discount the tracks than and the supply a significantly up meaningful pretty can create just some live disconnect. whichever they'll any will up but demand, just there's carbonate In in rate lower where market short-term goes take with and quality, less

also think I challenge that happened QX in was So well. the that of part as

and CapEx pace, And in you then reducing started of in spend Argentina, out delay X-month some there. you a that called

Sal in or is issues de maintaining are cash time out there? about back Is just that CapEx it And pushing more Vida project think spend to some what we there had should So delay again. the delayed revisions and time drivers?

So just how think we wanting understand now. to and that the about timing

much. a so project-related not It's decision

X it think I is things.

today, is ourselves the balance at market pricing we're going them put like risk. where one is to sheet not think level the and this clearly at I leverage of

the back and creating to impacting way And the environment. so take notice increase different deliver acceptable of had say, not success project you'll negatively capital this to is step in spending us or there without all a the a conserved of to projects a that's

for and no Canadian de Vida projects XB those are really based for close It X water, even across the you on way above-ground or that's opportunity X do we de And to those MDA there's and different also Fenix each to those deliver contractors, whether share, to infrastructure an we improve projects. other. an which Sal we an is that Vida regard. in it, Phase optimize energy, are do frankly, opportunity compete creates name Sal there people, So at above-ground resources, in

optimize a certainly labor. may Our be is actually take efficiencies projects able capital X the moment possibly first to it this reduce glance could even can by we helps those that those cost to be. us constraint at And big resource that across to suggests where taking a total we Labor look there.

X So to some X across and those lead X-month across cost savings. those lead will X it quite yes, projects. But our delays suppliers likely to to so contractors, optimizing to

next of Your Chris Loop Capital come Markets. from the question Kapsch line from

magnitude So it the probably been example, about dragging And question were capitalized. and supply wondering capitalized I'm low for visibility rates just first of EV in the pricing, perhaps going underutilized have the that that's the of have gigafactories, asking in seems And been because around very really gigafactories China. that's like to shouldn't thought overall. maybe to dynamics factories shouldn't that are that a you operating is destocking they have that. and nature at discussion. I'm Because one activity also the China companies what's been been opaqueness my follow-up just the has opaque the on

into just that course? wondering, what's feeding its you your working de-stocking discussions, is that commercial I'm and the have So into visibility

a I some down, have we manufacturers expected don't battery just of rather down Tier but haven't seen announcements hiatus, cell huge a X amount not of even to see Look, going actually would closing closing and on Yes. Tier we lot visibility. or X more have than yet. frankly of that

impact little the because New Now. a of see early time every the year this of It's at this and We effect. Lunar still. time Year probably

commentary So we some going X the we'll maybe I sporting start some see be guys at up. next about do there looking Australian to know see are from to was buildup. whether inquiry or month levels over some

not we're we going today. maybe impact a start we're us see really when it an But again comes supplying it because of so contract to seeing less don't And to would it's pickup I into say in demand. to that discussions, chain.

all we contracting that the may it's absolutely really supply those not and customer us visible price its like A thinking embedding quite piece as would to, not be it of market be. where we're that market about to but exposed into the why spending Arcadium time impacts has chains. just another And ourselves as been to it's reason

an your evolution evolve a as should had extrapolation? that flexibility if strategy. showing important what preference is wondering or carbonate. are And curious was LFP the you? too I'm also that around the around much tenants you interpreted be versus globally on to more around of follow-up are the And that said you what then customers discussion strategy, the hydroxy for momentum about I'm as tenants commercial just

think look, a of No, today. going there's things I couple on

IRA source and whether hydroxide. technically see that where the IRA I into carbonate today think as on upgraded is things well qualified carbonate sure hydroxide, is on more is know we there do we're material, I'm of placed and and and more you not supply or carbonate, focus Argentina obvious reasonably one an IRA And hydroxide. that's we qualified

what strategy taking up sense as first lining portfolio I closely So can asking much our to with make and or part most the the it the we missed most think you're us. Chris, as you customers the about. commercial asset I of of remains closely said, that

partner important what evolving to Well, your with as for just with coming an and you integrated combined going strategy terms important in as up in I'm think formal and your of guess, about perceive you wondering one perceive as the the And what customers I talked comments, are also, tenants company. commercial you you your them.

to be the produce materials we us that's strategy, you we the quality the do, if think it's we at customers option quality that least, really value consume I the the way to well, is finding the is question. thing And don't they sure do of demand. Look, going a to an as be think I indifferent can One that commercial a for you important make. material what making

the a probably produce to usable material has but So bit carbonate time take challenge to a hydroxide, more less and of space. effort in is have qualified and in we going

insights. be heard piece leading think does, I customers perspective, from a to and are what that live sure. limited. I have high for the the to historically, certainly you've the that of the think think And have because charge remains hydroxide the carbonate, that see nickel between wanted always we've a second best closest adoption lot case the mid-nickel and shift And significant. pretty more between adoption We and I technologies but And it's LFP while LFP always is

bit need And if LFP EV cost going So package fallen frankly, there's you're vehicles, service of that that's bring down. to no to for the trying your going $XXX low-cost a of and are market. OEMs work an drive of battery that doubt that the below a carbonate a they're the price with has to grail to holy the kilo customers,

having doubt invest going this is be that's in to strategy the time sit to not to share doubt, important, partners combined our even willing to evolve improving There's a that strategy No it's quality evolve. right their to So more to going particularly Though quick road or to company. material. It's are down do a if be of you change. no the maps the really to takes more complicated. with going quick as it and we're that continues

next line Rob from Stein question comes of Your Macquarie. from the

a And asset roughly Cattlin, of me. from would Just quick the that's of asset into key to be ones your that to X that just numbers better that see about sell for supply? secondly, guidance. upside that the provided not future, lever producers obviously EBITDA given Just of may ton one, rough math LCA, prices you've some Australian existing roughly it spod sensitivities trying cut that or you've on that to then The has explore provided, just being XX my with kt Mt. on to to sales of that value breakeven. spodumene you're on aligned the $XX,XXX thinking? that manage EBITDA for get pulling Is bookings a

say tonne Outlook $XX,XXX scenarios, projection you you ton? But asking guidance. a that you $XX,XXX your are is not or saying for me the $XX,XXX year market today's when that a is

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are above XX. the falls chunk of the a So once didn't market our we flows get big to revenue XX, price when move because to

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bit It's predict a as to harder little well.

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the And in variable there. so that's

we've the because is There's off market regard the impaired to period sits $XX cash those of to of flow business projects, all at business relative a kilo severely $XX the of in time, to etc., clearly, the what EBITDA we If capital and are no of with a doubt a kind there. of numbers pricing, the the put kilo. generation as long bets a do

doesn't price number different completely really a When me that for the it's organization. sustained $X, at matter enter it that currently, strategy So least to is whether $XX. or kind you $X of environment,

then just on spodumene follow business. to And sorry, up the

that out, are if I X Cattlin's left, you the for underground. a further, stripping buyer. years years X to if if should don't on a of amount risk asking take know, maybe months. less to invest flat an I a you're Mt. to further merged don't than Yes, willing is money how We've we we Cattlin, it been asset know of life potential decent going got, attractive if you're run Mt. sell willing

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from line the Yefremov comes question Markets. last of Capital from Aleksey KeyBanc Your

Ryan is Aleksey. on for This

in Just X reach be. just full seeing the then would hydroxide you've not your secondly, us ramp the China, might you, that some facility quick to XX what from some ones and And opinions rate. could reports those sure. which environmental that some on and in me. would when look new of heard through you run kt China wanted reports what shutdowns. some of ask may run I of there's operations if I'm like recent if or I cause know seen don't inspections,

time. that credible opposite. or locations shut of go down later, they're are and so to environmental my that are subject heard as of for comments I've it's event don't that Look, heard Sure. hours the more the events, but one somebody come same period equally now earlier annual reports. I've complete an XX about inspections than some well This is there a opposite. the frequent maybe down annual also so

Time tell. So don't will know. I

face, periods going time have they're I have necessarily typically months, not converters because simply longer integrated. are economics are very to X, news and I some not normal, they purposes, and than that environmental some of reports there and there closed that be for that heard of credible certainly seen X for X, commentary the down

think not itself. I question is qualification. in It's our facility the ramping of up, plant terms new the

way plant to produce months. we're and X it get produce take material that that can highly process and already still that can is qualification run will from X the demonstrated though qualified, anywhere The confident full

really And its upon so and their chain qualification depends supply process. it through how works our way customers quickly that

the Rosen concludes our Mr. turn I closing Daniel remarks. call back for This to Q&A. now over will

that the but to time address for have you all the the That's will be following we have. call call additional questions today, we any may available

the Release concludes Lithium XXXX Quarter Fourth Arcadium Conference Earnings This Call.

now You disconnect. you. may Thank