Arcadium Lithium (ALTM) 6 Aug 242024 Q2 Earnings call transcript

Good afternoon, and welcome to the Second Quarter 2024 Earnings Release Conference Call for Arcadium Lithium. [Operator Instructions] I will now turn the conference over to Mr. Daniel Rosen, Investor Relations and Strategy for Arcadium Lithium. Mr. Rosen, you may begin.

thanks Earnings for Call. and Second Arcadium JL, XXXX Quarter you, to joining everyone Lithium's Thank

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

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

Given and the on questions participants happy the call a limit additional today, request call. number of per be we of one We'll any the will one caller. address question to after follow-up

with directly diluted as will and Definitions various website. And that, references I'll with financial and per metrics, include to adjusted presented adjusted adjusted vary well terms and to Information results on Form call let provided Relations Investor may to EBITDA in XX-K adjusted comparable that Paul. presented in these concerning remind you uncertainties calculated most our begin, not include earnings other specific of financial measure are today's today's factors, best represents we including, Commission. forward-looking turn discussion our to, Securities the me tax our accordance with based risks are on based EBITDA, identified these various and risks those judgment as filings factors a rate. GAAP non-GAAP and but uncertainties. Today's margin, and including will Exchange Before to subject limited over Actual upon discussion statements information. the that share the reconciliation

lithium quarter quarter in reported strong they challenging conditions Thank levels ending the at you, Dan. indices price remaining results started. despite than the market market lower Lithium Arcadium and

our to we have a so. Similar pricing wherever to with quarter, show to makes these sense this been helped securing approach operating our of had low-cost achieve continued market do higher footprint fully it performance contracts would strategic than we in benefit partners pricing exposed conditions us commercial approach. to the and market of financial Our long-term last realized following

consequence, realized butyllithium the EBITDA of product for delivered products pricing the and close $XX,XXX specialties of for Lithium second per and our year-to-date. Arcadium price LTE quarter per was the in an our this. we As other and average metric carbonate a per significantly margin hydroxide to quarter, combined volumes above in achieving a adjusted with that ton XX%

sales and the range and consecutive and lithium can value stock-up possible. We means XXXX. of products growth. expansions, per timing additions increase high-quality our years result relationships carbonate volume the from The that customer a that network operating multiyear capacity as online hydroxide XX% volume Fenix and wide we in to giving on expect this volume in continue year, growth already completed XXXX above-market to of Olaroz combined these again of well processes maximize focus volume we at production significant the we additional LTE lithium Our this produce the brought both wherever means expect to we achieve we in the as us of XX% X in nature

implement significant legacy we cost X We as on efforts across to various integration the progress continue savings businesses. make

in million guidance savings the cost of $XX realize our range. end to expect $XX to We million XXXX towards high

announced accelerating merger. the total also with that reduction are We pursuing of we the cost initiatives a program

in industry to we're announced committed now to we by expansion to targeting the XXXX, cost that announced completed, prices, globally previously coming deliver expansion per lowest we and a to faster. It's achieve of projects As lithium reminder, of and increasingly cost clear total to Arcadium market date. savings when capacity pace forecast at in these operations them million invest the $XXX that are expect cannot years. remain synergies current be Lithium's annum at the developing we amongst our all

to is our accelerating market today be is in clearly delivery is the market what the if industry going However, balance. volumes of that to needed the indicating is additional not supply

over We an reducing to our maintaining the during our to in pausing appropriate timeline while our commitments next us $XXX low over financial second is now our these Consequently, of by slow projects to own projects. future. I pace on period will to current the turn our in growth of spending at we invest investment call time our the decided and months quarter customers. supported the the expansion have, therefore, will reduce XX allow total this by prices, will our Gilberto down in expansion million discuss X flexibility of plans This that market capital approximately X by restart a to performance. market

with operating some EBITDA and Total Thank Paul. customer second EBITDA was margins mix. Adjusted lithium per Lithium for of the carbonate earnings volumes a by adjusted sequentially positively quarter million, $XXX changes quarter, of carbonate partially partially million Slide to hydroxide of offset FX adjusted price slightly a across you, revenue of Starting sales lower Mt. while higher chemicals, both at sales realized second on driven the all other negative our were X, share. first low Cattlin. Average was lower in spodumene, impacted products. decline of hydroxide volumes $X.XX up by pricing impacts. offset combination of but Arcadium on product the in production costs, reported quarter market and price indices by diluted lag lower portion $XX higher and This for versus were due and spodumene impact by and reduced

margin conditions. result, As business Argentina in our low-cost achieved the power XX%, earnings market EBITDA of the demonstrating position and of this an adjusted our in challenging company a leading

ton quarter. detail roughly second our price from XX,XXX Turning we tons make in an our the metric comprising nearly Lithium to up basis, lithium Slide realized and average year-to-date X, sold carbonate business, hydroxide metric revenue. On performance we product second three-quarters core $XX,XXX provide a of further ton quarter key on groups. combined and together the per our total at product of of

achieved than spot lower While we was this a market-based pricing had pursued been sales quarter-over-quarter, is fully have strategy. would higher

benefit We various firm core other pricing of floors price under and specialties group volume also with down agreements. Average place across continue customers select butyllithium was a and the quarter. lithium realized in from multiyear annual commitments prior versus to

continue products value these for time. portfolio to very reducing underlying our while high content However, deliver the volatility over lithium in overall their

pricing a per from roughly over basis, sold operating the will remains for versus production activity. I quarter. slightly Mt. due the dry up reduced equivalent mining in was on metric just the per at Paul. $X,XXX back approximately we SCX lower, $XXX cost first production which plan the grade ton at now consistent reduced spodumene, realized For Cattlin turn We to achieved at X.X%. Cattlin Volumes ton metric of mining quarter to of dry year. Mt. average an XX% cash with The the XX,XXX tons were of call average

demand Thanks, lows in lower second in Gilberto. third space Slide XX% to on were we on recent lithium to further lithium while quarter and broad Touching briefly the all-time prices near-term the I'd continuing X first that year. Lithium demand EV new safe June highs. to the bulk contributing declined half demand to set today, European testing it's can with robust. million dynamics date, year. Underlying strong be a sales and into growth the quarter penetration higher continues in rates the some of we this total growth in like pullback there's energy U.S. moved few this are basis, of and Beginning demand, and of EV where price are point a negative in month there that to reside EV this of sales have PHEV cycle. China, remained There remained observations X. a weakness. storage provide market units in say to been move obvious, half hour On overhang the the growth, and as to with on exceeding globally the some second gigawatt year-over-year and

rapidly storage if there's little continue online been to be long-term to is be for meaningful future for In the growth change continues come additional very is total demand picture. fundamental aggregate, supply to demand require market Additionally, part in growth to this And of applications going going the demand balance. stationary to lithium. a trajectory growing the to

have don't market today. clearly that we balanced However,

production for some to supply. This us It converters the chemicals in particular, to Additional of than Much lithium has come percentages we've has than spodumene China producers, investment this supply has supply. out the volume lithium are is end year, seek lepidolite come of fully of for the lithium upstream chemicals existing shipments and of from of growth per to increase as in more most reduces the in in growth and supply supply directly while chemicals also nonintegrated chains unintegrated demand higher spodumene resources strategy battery lower rate continue had themselves. Put the into slower these continues cost become China chemicals consumers differently, increase spodumene even the at for resources the many expected. at producing lithium both not chain supply of and demand a is for integrated into now same part the growing end But in demand market form much as double-digit security the external been products, to lithium converters in establishing faster market demand long-term and lithium or grow. chemicals Despite coming continues of the recent spodumene market concentrate to China, consumers spodumene quarters. of which much their they integrated Africa at rate into of or being in more is as as concentrate. lithium in processed growth for seen resulting connected

of Our our for own for Cattlin remains market received that Mt. demand material testing with of over spodumene XX concentrate marketing from the auction. small latest bids shows broad, volumes

compound However, South the low, be in also also at to continue on America prices seen be broad slower demand that than to us to a carbonate case pressure certainly this, can supply are grow, China rate spodumene the even that spodumene and lithium going to we've in prices appears this leading growth low, supply. chemical lithium spodumene absorb, albeit increase greater And in are when than of supply is prices. shows the today. To history downward more in

for lithium flux integration traders than of lithium the producers futures for in market visibility see carbonate underlying producers of through material, than or demand and is of we today result of OEMs inventory being had global with grow, consumption market exchanges, greater less for held continue spodumene right increasing and increased supply, greater willingness buy see of levels at resulting in rather customers. The a for a end technology converter market easy where As we and is producers see into customer this in historically. this lithium higher activity inventory now. roadmaps intermediaries at concentrate demand and Much this to by contingent proxy use to as to hold chemicals. have the had true It's combined is end a end

in and environment, move curtailment true suggests in marginal view prices this, But evidence on future prices they producer, skewed from greater this longer below the to levels is as are, needed below the the we that basis. the there's the resources, However, the lithium ability the prices a investments. The that from of production holding where today's short to down not the prices as China heavily term. Despite in fact, further connection the levels to supply. high-cost prices upside well today investments much in further cost today's incentivize in stay current likelihood believe are longer-term lower of significantly limited sustained from for we

chemical in to return expect demand that market time. growth that back-integration pace rates the and prices end and increasing reinvestment of alignment will levels demand will result slows, towards lithium growth We this as at rates

from of delays in While we do incumbent developers, junior and the we producers both next to materially the not quarters. more expect date impact seen have announcements to slowdowns market these few and

independent XXXX given supply most models of much However, slowdowns. impact we the believe forecasted beyond for too in and do high these is the that

record producers from backed not existing are more discipline of especially being projects less by success. We that expensive available a without expect and for developed companies those to flow or more freely and track see capital, proven are cash by

in not world-class products, time a will we've the just do lepidolite development China, important, in much projects that as African of very at remain as years. face healthier in hydroxide downstream seen resulting not sourced financial as portfolio. spodumene the outside in materials well higher a perhaps higher-value fundamentals our that over tight for few logic market also of challenges, can market raw last from into continue conversion is available return lithium expand to or confident China. We in We believe rate And to the volumes especially

we realities of invest made adapt However, project responsibly and we pause This projected a pace to market at be and industry. today remains in capital the that in to fundamentals we has find Canada. must spodumene that therefore decision basis. Arcadium investment a will the leading the which in amongst the Lithium the lowest can the Galaxy operating resource, at ourselves world-class assets cost on the

strategic commitment, However, not years. market we needs of or capacity the outside for customer the absent And supply online project not backed long-term are economics investment carbonate merchant mentioned, timing ultimately this cost project within currently the The agreement. disruption a bringing compelling. We're building will partner next very minimize a do long-term be return just conversion in structured the a is pause China, to and the that this on bring that likely restarted. us current capital believe a a providing by to as when X for long-term Galaxy in volume I basis in exploring is interested strong hydroxide

Stage carbonate Argentina between XX,XXX Arcadium of projects the of Vida metric the ton firmly lithium Phase XB, Hombre in Additionally, These in operating its revisiting also forecasted is Salar projects with Fenix the costs del quartile Sal production. Lithium are Muerto at sequencing industry-leading lithium carbonate first combined de X.

of both allow provide each del projects optimize the sit of investments now kilometers the X expansions completed to spread the to infrastructure previously with of execute also within a us needed the development Hombre will where additional expansion will how be sequentially. than spending in especially time Salar respect future for other, as few rather It However, Muerto the to simultaneously, this time. a announced, to capital longer that expansions. over will future period will evaluate complex, Doing also additional be

in have integrated in not of push to plans to for production. made combination customer development to continuing confidence changing we forward strong Nemaska progress our project and in hydroxide our the Canada. ton are give spodumene towards Lithium, the with project We for of XX,XXX metric commitments The place us commercial date the

execution approximately XX months. of attractiveness any the of well these our do As investment X market well performance process million that on we our of capital But over to of the capital decision we spending the our continues opportunities projects. change on a as today's defer to cost in in current of remaining environment, the deployment cost-saving responsible through reflect to our our as in result focus of in our prices. projects, in view navigate X as this will that discipline projects identifying not low reduce and business expansion expect decisions by $XXX market we differentiate operational next as These

broader Our to further our value upcoming with this outlook Investor intend and September details development and of portfolio Day the financial of objectives strategic and of our remains we expansion on core on this business, operating XX, assets to event follow. to a detailed review and provide plans, future at

safer, providing specific lithium updates So our sell includes assets process moving intellectual in our Slide metal assets, metal producer today. XXXX acquisition of in use high-purity of which increasing property more metal chloride from the lower metal $XX as It Corp., that processes X, with acquisition position of our of pilot Argentina will by metal strengthens a providing and of a Lithium. integrated of and our for and in carbonate improve value Li-Metal feedstock. This we're the butyllithium lithium flexibility sustainable of lithium We using customers. the Arcadium recently to varying the lithium for production operations as that a Ontario, lithium lithium million Canada. business facility few production our global cash, This including complements to grades the maximize our and businesses, lithium network fed announced production the to our cost of we ability while capabilities we

to cost-saving integration initiatives the identifying in and Additionally, progress X executing we continue on legacy significant merger and make businesses. across

towards end now organizational result, the savings services operating to primarily our the X synergies high realize $XX logistics range. other driven a $XX As This restructuring, of by XXXX and expect guidance million in elimination third-party across of is the to we and million companies. and

to of Lithium XXXX, savings X beyond cost closing. Arcadium accelerating $XXX Looking is total per its achieve year within plans merger of million years

respect and have expecting for output we regarding growth these production further increase our XXXX, cost in continue We to year of startup leading the in to with program in now in predominantly full increase volumes commenced provide increase months. With further lithium will coming us the the in and their to processes. as These a combined total year. this to completed expansions coming the accelerate to half expansions, a carbonate move continue coming levels We're these capacity details second hydroxide delivery of recently increase a XXXX through will savings quarters, volumes XXXX. to the plans XX% sales volume the compared forecast XX% we

The and slower processes. extraction nature meet carbonate X expansion direct process due consequence metric already design to but at operating This standards capabilities expansion to operating target operating nameplate is rapid is XA by carbonate year. and operating and today, fully increase quality the and of using producing the target end carbonate, XX,XXX same it a first plant-based move producing extraction lithium the be metric XX,XXX the at at of Stage operating in rates lithium of Phase quality conventional Fenix Olaroz full Fenix. The levels is we rates to -- be lithium direct commissioned at place expect ton ton will to

on to half design this later levels in and rates We consistently of the quality well production while X way year more towards XXXX. Stage meeting second to expect nameplate be production its increase throughout to continue

expected X,XXX to Zhejiang, lithium increases the increase in Japan all them. I Argentina For discuss hydroxide, to volumes are ton Bessemer turn as City, full in call are lithium finalizing as in XX,XXX updated They production back Gilberto North ton metric in unit the feed ton commercial year China will now units outlook. key and carbonate soon the metric Naraha, XXXX Carolina, unit to our to customers. with XX,XXX the metric qualification

Thanks, Paul.

by now see sales X, at or translating on expectations and growth sales to ] midpoint. LCE products. our tons than to Turning expected you increase higher to 'XX updated will are XX,XXX hydroxide to XXXX by [ major metric an Slide XX% Combined volume the carbonate X,XXX basis

carbonate We lithium have lithium projection is for year X reducing maintained for sales. our sales hydroxide this while primary This reasons.

the First, delays plans were small production for hydroxide that meant downstream also expansion carbonate ramp-up slightly impacted in our our XXXX.

more have hydroxide and the opportunities particularly customers costs. price, volumes conversion we importantly, attractive when at products, more selling in found versus additional Second, to additional sell current uncommitted carbonate market to the factoring

due conversion flexibility our carbonate We able current process. lithium to leverage commercial to are this hydroxide

Given remaining firm this commitments shortly mix customer customers multiyear volumes prices, we to the benefit to we're see our will hydroxide near prevailing product our you volume fewer market outlooks. a and will provide to and expecting be not to now hydroxide scenario under in sell will reducing agreements, that us

other sales Slide It similar spodumene also to XX, want have be fairly our some for outlook for We provide half. On second in financial half our slightly sales will volumes lowered result first on items. commentary the to I projected to XXXX.

of capitalized diluted accounting of lower to our This combination full treatment share respect XXXX depreciate. can year our or SG&A determine $XX of as as of D&A, production parts to the XX.X note million. adjustments that diluted shares we no have is inclusive for begin convertible ramp-up spending outstanding. well outlook made million With from of to due rules lowered new by to expected outlook assets a We when count,

to end range X.X%. a to $XXX high the we model adjusted have XX% Lithium operating global CapEx, We business. resulting for million of $XXX a our This tax narrowed the of Arcadium by integrate is to lowering a the as result progress lowered have XX%, And the in rate our as million. of range to of combined guidance, continues midpoint our

year financial the year we to the second quarter with expect in framework for the Slide Lithium second the provided in prices understand more market cadence year We half updated in changes be quarterly half 'XX. may an second Arcadium how of XX, performance of line for impact the the the have the our spend. On of to full

applicable. midpoints of shown X assumptions have of for market cost for the XXXX, second to using the forecast for and overlaying expected half XXXX, be scenario latest on volumes, savings are per not and the LCE scenarios $XX lithium likely a of price while a basis as as lithium existing Arcadium the of keep of year. We We should they not. agreements SG&A prices This interpreted kilogram general the second sales Lithium half which in commercial as range our $XX constant

from we lower were where scenarios be to the initial reflective order they more of today. pricing in the market provided However, is

to continue case the its on rebound, place. Back remains that the offering market-based lower fact, will in production see significant takes volumes. $XX a while You low-cost assets, Paul. you, should resilient [Audio where price LCE achieves per Gap] And price upside highly to average Lithium The in Arcadium business

Gilberto. Thanks,

on So and adjusted in XX% year. weaker we as initially quickly making to margin EBITDA throughout even of of the before our environment performance your just $XXX performance expanded want well half to cost Arcadium so price business network. We'll we drive at we over sure far responsible to operating cycles. to wrap continued been all growth, and generated the to the position million of a than We questions, strong focused first has in reiterate year the invest the I this Lithium throughout improvements expected, perform taking continue market up

now all for we're in our neither further detail We you I ahead market Dan about with to Day speaking Investor or this sure what use forward sheet and We will to will investing of look at back questions. look needs. to behind sensibly balance the our September. And of the make turn in call

Q&A you session. Thank Great. JL, now you, may begin the Paul.

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

like appreciate visibility demand. concerns around and context of on some the market of the underlying sounds I the Paul,

these of wonder again, early, forward some take be get putting about in of slowing going you some skepticism what think direct CapEx, indexes. Is care think would or excited about could might you and down about would reinvesting As of reaccelerate? make you kind to what lithium your it if it prices just projects some spot as but talk Clearly, involvement you of obviously market price? kind a in more producer Maybe to capital about involvement? beyond OEM just I rise

a the it's Look, has the convince price to I to return hard enough, if that a that I are the models whether mean spot increase? going separate generate short-term X. dollar invested mean that think we right, to period. dependent we the is on not. don't if Is enough to me? have price, -- price be assess high a to Probably use Does

easier volumes to asset are basis. need? commitments whether bring there carbonate? capital is will the It's to commitment I How from for understanding also that on in to not, merchant case-by-case hydroxide market, look if is customer future demand that much going these certainty or project and on versus important a X, market the has frankly they out like, pricing the accelerate look put us. pretty in mean or strong the a are the a a it certainty the easier make to the at for seeing spodumene understanding think are what's the what that dynamics we in demand going to the and when play each I really what factors patterns actually

that the for the that have is this while by develop probably place putting also I us fundamentals help that also think are if in But the justify biggest project today, certainly James that look, in to it. to is and some would just there bringing single in there Galaxy that's to project to factor, we the wants a out Bay a us reaccelerate confident going certainty partner long-term project again. the help for So trigger be biggest be capital single to come

and I cash, walk I kind second reconciliation, cash indicated think, wonder I quarterly. the in just be through up And ask I XX? on to could will saw half sense. back follow just least you we Gilberto at the could similar you if June of what CapEx the Makes at quarter, appreciate, us ending

you at $XX guess as well. think if be So kind look that ending scenario kilogram would you would what I the think cash hazard outlook, could a like of helpful

Yes.

So expect price costs a said, expect level related the integration we for as costs. onetime the the some we spending, do merger similar and that to we and not of them the faced half, year, have -- of and commercial beginning we to also second CapEx adjustments same of we related in

second -- will versus So be there a relief for the half.

half So naturally, have, year we first the in not in the have of the of call, will magnitude what we half I burn year. the second a in close cash any that

be spending for the you would that we for assume not the I So again, that in $XXX I target should -- specific level half than say would million same $XXX without sure. giving or number, a the less of would to any year. number first for clearly million you

of from TD question the line Cowen. comes next Your David Deckelbaum of

reductions -- I guess, capital made. expand last volumes the just guided sounded program $XXX was and be like on Fenix Gilberto, maybe if you on year are I to while the we XB just a that order million still your expecting of clarify given, by curious you million, XX%, totality if expand on of It could next point $XXX should commissioning.

the environment. in if the burn as seems following amidst that it shouldn't 'XX have So like an is you I'm for base incremental that 'XX sort even of EBITDA in scenario, lower like like $XX your well. CapEx And seems guidance, it cash kilo a level in absolute

Yes.

place. $XXX in right, lose contract that other want And I portion you're of going volumes 'XX, $XX of bigger don't you're that might this think year. again, they see think this the XXXX, have to we you're necessarily think the David, have I to we again, price in based -- I that. sight on and have math, your that question to I savings No about same price, going the that million taking right not

might even have next that year a we today. that So don't market prices we have above price assume for better

yes, $XXX going -- So taking clearly, that savings this But a relatively think is good we're 'XX. will this -- I $XXX biggest have be place the on to million number. million but the in

just lower too. those just next contracts that I prices We prices year. We year clear on you're [indiscernible]. point year next to than regard with going to sure have for more this into don't year to year make next volume are that any actually Yes. made want that have Gilberto that this clarify

things As sell all those the contracts being prices next more contract naturally will grow we equal, and volume these other all are under year. take-or-pay,

course, Now more we, of add volume. XX%

I little it's but So to of want more prices There's to contract model is [Audio bit you a next a this. because any risk into there to read year don't lower being than complicated Gap] that, those

No. No, year. My should least back the we're at on -- right be dealing if of with now, seemed that envelope but you follow-up, math in it know I next a like fundamental might strong the napkin, picture Yes. cocktail yes. I

go Sorry, Paul. ahead,

going the No, was no, I reiterate point. to just

the be of you're first XXXX but 'XX, right spending million $XXX that more visible next reduction capital capital half I year. savings savings, most of are think that will half of than in

the the in pivoting with just I And guess LIOVIX just here have I perhaps, know lithium And obviously, hear. a recent side little portfolio. on acquisition. to good harder you bit That's the metal

metal. I'm -- material being do into activity you your now you X metal lithium talk you for you source view, see like into products When seems macro it view. So different about a Arcadium? have -- or us around gave lithium commercial from converting a and solutions different curious of -- products merchant

and just The says is specialties. business It chunk today of our lithium metal happens butyllithium a [indiscernible] big other to based.

people a ourselves. just So do historically lithium ourselves, in demand chloride for internal converted don't chloride China pretty make we've lithium or And based metal. them recall, processes chloride-based not the either we so pleasant environmental to told we are way for lithium forget large have using Lithium from looking responsible and metal processes. and but we've in-house, been more to safety processes operations an perspective, bring most a production not the And a a run. chloride

is business. about securing our existing supply So this really acquisition all for more

think I piece major the we me lithium If years of being do are probably you think a business. part it storage X, from the energy X, of when volume ask X away will business, a be I big metal like

deployed some requires, off a applications space it'll it quickly. saying When changed technologies not of for XXXX, and that been takes before broadening thinking But it evolution pretty semi-solid we've So in a really technologies meaningful while, solid-state take being or think, the yet. I they're to. hasn't off, and

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

of couple ones. a quick Just

about a firstly, Just got your was I which X guidance years. you've obviously you us gave quarter basically, over the that think, CapEx next X.X% ago,

say with comes that and everything the we're to will million Strategy is fair month? on next get market, project the likely is it slowdown the is at And off So increase which obviously, in update that the individual then $XXX CapEx, seeing that? Day to just an numbers CapEx the

Strategy an next at get some numbers know be different Day will don't be the nuances probably update month. to certainly because You that. slightly will I are going higher. whether the of There

the reflects think I there estimate for them make really aggregate slowing out As typically. down latest But a cheaper project. you project the on we basis numbers an have that our CapEx for know, doesn't

on a up guess, basis, things add will number, it project-by-project as would may be surprised but I So today. the see to we you same

mean, Mt. cost then obviously, U.S. And assume quickly, $XXX just I that's base, Cattlin, Okay. I

With is freight, something on worth the it actually maintenance? care and it Is keeping is it the putting you're adjustment, open? that add-in quality considering

they prices QX. $XXX than difficult were a spot operate anywhere operating sense in else. is clearly per to Mt. right? concentrate, or Cattlin it in right QX, does not Because one, spodumene for keep anywhere, made Touching for Cattlin see ton to now, definitely or we make lower they're there. The so sense Mt. latest XX%

stripping But think to can and don't I react I care come next question to X points a becomes that then the we're spot acute. looks X are now. Mt. much spodumene for that more prices and it asked as know of conditions, mining those of cuts ready for price phase And want Cattlin clear we these maintenance, we're asking and to in that about the not you period pretty your putting just right whole digits, digits is of question that and $XXX if X get into or out to China to maintenance absolutely. concentrate. of imagine it the strategy cash we're capital about, be are as got intensively market questions care it's If in you go. The right internally X

from KeyBanc. comes question next Aleksey of the line Yefremov of Your

Gilberto, an maybe year. can sheet envision but next specific helpful provide, as to should sort with of this provide just you that of to capital not, going finance cash flow balance of be suppose, I we hoping I mean, well. year numbers, What how was you if you to could of happen the would idea is would capital program whatever happen statement? maybe and for if the any us be great, expect I sources and rest on

Yes.

of will source to think I cash be So operating the continue flow. funding

initially year, already won't requirements as as said mentioned. the much as cash have first had I I of we we in in call, the the second the of half As in half

continuing be cash drive we're adding flow. the a which we're lot in -- and to volumes So of cash will operating operating the of more flow. going And to generate year, half more again, second

we another volume. Next year year, also versus of this add XX%

We to on operating facility. million drive our untapped flow. cash will We remain more credit continue $XXX

So we well. that always can access as

to also I'll million XX are from cash self-funded So the that continue evolve. further we is us this to -- as ] cost reduce we're how a And this monitor will looking going to expecting the to is to the continue and not in reductions time, CapEx. And add, savings the related plan next we market But be our investments do we [ by again, to also of had we CapEx help $XXX will just as in perspective and well. months. be

do you anticipate self-funded, So the meaning not needing revolver?

yes. the do anticipate I mentioned No, I that, using revolver.

where just Paul, a change, as change just not not fairly then Arcadium's premium do hoping today? expect sort indices you since was pricing comments but important I about made let's such I Okay. if, say, point, The And an already, specific year it's think to next clarify. realized position they and you prices are as do stay in a similar to of market well scenario

have where low. next that average become be staying Yes. prices of Look, under Why? will if lower. year, all for prices the they contracts our the are are Because proportion of we price

absolute number tonnage spot as into so markets that sell we tonnage of up, the the well. does the goes While --

of lower scenario this for So not today. year, market achieved it's the mathematically but have we're what price $XX, our slightly on to almost the where to half market impossible average go going going we is It's based the we there's than to price to no be see in first average $XX.

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

on Just downside a question scenario.

were still $XX, on EBITDA projection a range. we expecting lower pricing if So than nonlinear the towards

was between essentially X. it So say, the drawing $XX, not line we're a straight

but are to I is think the the range off asked a we it got fobbed quarterly of that between we we question the bit, are today. kind $XX. and $XX And last obviously, in where little

be So just to resilient the that's range. a the scenario lower lower than helpful it'd understand end of under price the

we're If $XX doesn't is are, pricing we a once on to which way with piece you in Yes. change. to $XX, even those when close that Look, of place. And it that prices. last getting $XX $XX, gave and way. get change. that the up, above $XX not just why prices then the goes wherever floor the down prices, a and now, price you've of just that our above deal get once below and have chunk $XX level, exactly it that to perfectly not moves $X, range become contracts, got Floor linear does the can it and we it's time linear $XX prices $XX $XX, it you because in the are that But really it's floor floor doesn't you you

time, pop sort we I to the -- just the into because harder first price depends question $XX floor last that prices So question going gave floor between to the $XX between or range prices. But price number that just to think sits time. to doesn't was -- floor to I it's it those it last somewhere the explain don't of come the was X off $XX, $XX $XX, to $XX you're your I was answer going are if trying not -- play.

are got of on for put So additional set volumes the there. floor volumes, out but to linear big chunk still the it's a fact these a price we've at that that you scenarios under account

Yes.

volumes, Okay. help how sort And help I parties, commitments are -- your to attractive you into guess, us you understand I the emerge? future the, sort So engage correctly, with strategy arrange related of change contracting question. think volume pricing guess Can downside if contracting may floor your can a me that returns scenario you another of downstream I get that you through commitment you growth. market should underpins

seeing how future downstream underpins until risk customer to in with firm interacting growth i.e., really a slowdown? Because firm not their that the is question there -- understand you where to contracts at guess demand bidder up around of that customers free trying year? when to are essentially And a scenarios from bad to demand past any attractive capital projected cash reemerges. profiles. flow your just getting we the generate I positive this is out expect pricing your are point So you we're generation view, we expansions, of for lieu allocation can interest

find world an in. ourselves we interesting It's

that maybe to -- with in mean -- we have us conundrum. And continue we overstating better it's a may like customers partner it. be But today just So we view us. treat think their the than we're think I are. supply I customers -- tend I are to chain

They're to just sense producers, example, So technology, be which work for battery with figure "I for makes it say, product." cell in, to producers. come they cathode which us don't and to supply to part out which try chain us to and of Arcadium with want trying the

sense where go. And with about from us, as more it for work to carbonate. about our we they're they flexibility so And technologies think and makes for hydroxide also looking material them between particularly different

that have flexibility more and they more and network. take across qualifying spending as product to our more actually much more time they're so our so And materials of from

locations, qualification ability that supply biggest our get have supply finding into multiple multiple actually And in of is differentiator chains. their processes sources is single the today so really to, multiple geographies, we're important this multiple products. to And through a, the

keen very as us. part we are that to increasing the all much commitments all and we future. customers qualification most today that broader into means this of their pretty look their means slowly have expand offering, cases, relationship volume In broader our existing the on a that them product part of on with and All

Now no. market in that, these if customers conditions, the question we adding and is, like more are more

important LFP how the who is I and supply or their they and is -- forth. think be want of need price most so those and to. low and because going and this their too, IRA on chains mid-nickel figure the be partners out don't and need They're what is much not is so to so feel also they and they material customers to they trying to how and

will next do or a quite those in the of customers the being I more that one to not flux years, likely X X X the frankly of visibility. contracts in material not script the place That in be put or They're just not that this it's bring next and not supply additional in difficult agreement. mentioned why them to exposed. the they doesn't about X technology truly sort just years. in with sold they more to these purely ready, lack have a will all long-term potential you The contracts market and place of feel don't yet to they're to have, So and want the mean in table us can we today expire make It's And that engage under talking commitments. to this. they we none

XX But not ton next customer a roadmap So today, contracts adding I months. a at going to more least, have they're don't in X anywhere. the to

Your James. from Raymond comes Molchanov next Pavel of line of question the

need reevaluating see anticipate next you take step? And your do soon spending to that do you plans? to capital what How

it's So interesting.

them momentum lot to either commitments a stop make other projects of couple customers and behind and wouldn't it construction inevitable a of would actually to them makes take them forward, for contractors have them us partners. we made because that a commitments I degree that to moving keep we've say We to have of but or

don't see changing I those. So us

hold, comes to it the we going it on and put projects perpetual, put on them. we're hold, to I X hold, is to expect do when restart think I say on not that other it's

we once, at As do to I once. X said, X doing projects rather expect at

decision. in finish we true in and Nemaska, construction the then finish as to James starting conditions move is one And now to of we a project the online we other can move on probably that as Muerto on Argentina to can will have months what then. Canada big do market same So revisit X make between -- we We've on in projects, that and depending are one. We the to XX clearly step XX second Hombre XX, bring Bay. got

a starting in expect mind move I projects. it next big our will the justify center So don't through front and those do mind in the are but absolutely be XX markets what we X and revisit are as to front in XX -- months, and we us XXXX, conditions

Okay.

in areas Nemaska on the up is Following from other CapEx reductions the of business? protected of kind why that,

hydroelectric chemical with Being cold that it Yes, quite integrated advanced, quite It's -- project certainly look at look, them unique, but think it the power the also it's economics is the it's industry. you when the unusual. unusual up line you protected. the and of hydroxide Nemaska plant. a even has fully Nothing's and just it's way wet project, It's our environmental we in wouldn't mine, footprint a say a that but uses. well plant, fantastic non-Chinese I long advanced, the particularly

And there. It's that do we us up to schedule. online the incentivizes Day frankly when by some and head both who's on customer bring plant will also a both backed be the to of capital of we you that provided -- contract Investor and a chemical plant guys see

bunch characteristics it's while And it's the big somebody a by has fact, it a so project, XX% it. of else. to Also, owned

So half for the we're capital. only responsible

well. that's also profile demand near-term it a as So has cash more favorable

question comes of BMO of next Capital Your Markets. from Joel Jackson the line

Maybe following on up Nemaska.

money. a is long don't up is to assets never you shift talking make a competitive at sense Does Australia the taking It's conversion. competitors network? of that of feature ramp over spodumene They with to So conversion happened, in a Even one that guys in Australia in merchant last think major week money. all do make make it you China. worried China. happened of Naraha time sense line They're to lose outside not to We you West margin be in the sorry. When mean about Nemaska, a other the your conversion just Becancour negative does I conversion? are component? what's or it know question, there long

customer in not to that bear I mean mind the worth structured way margin to nature got component. the particular negative of Definitely it you we've contract.

incredibly out We've has Mining don't ourselves that, generates lot pricing be of question going is kind a of China a have to merchant that We -- that it that acceptable it confidence this to returns. It's of spodumene is available that interesting. before. asked think being a I is, as volatile. into permits, attractive shipping of a or in et as easy long people. Canada Canada think It's model it lot of not distance. a It's people is for with particularly cetera. challenges many

going confident about also to ex-China build what that started if know would purposes, our supply absorb merchant going tons of the be IRA into regional Bay we passage Whether don't is more a spodumene that for going hydroxide So important that it's hydroxide on up, cost that demand, it's big market scratch XX,XXX sat. And market, that there's not lot enough I'm the demand part of certainly produce. to expensive being XXX,XXX that touch do or I looks the to cetera. And the I what of China, I lithium project the I it going But a but whether ton us, that about purposes the for There from that at important challenge building home day it, Day, year look, -- -- -- time, Canada that's well, that's like. be that starting when to like, we something view plenty be from plant would it's suspect, than broad it has is there shortage is pretty this think on it's et a doesn't if of a material frankly, we'll we're Becancour, talk Investor looks be world that chain taken absolutely of what we suspect though where will concentrate James with China. assess Becancour even for today, only just today, don't think resilience for we of and we it. that is that the of a to have supply

you when sense. of an think not a low-cost believe make of not the the think hydro, Becancour -- conversion way, maybe I representation it speaking, it about So conversion ex-China it like about best plant locations that do is make sense. think the network, it about that a as that, how part about advanced have, in to plant significant generally think we far partners unlikely without North economically. government the certainly Economically, looks downstream will building most American today, what is help is,

Okay.

lot but quickly, obviously Another pricing behavior they're of who that's big going excuse questions. there's cost. But the picture -- evolving big the like industry, so cares. a of talk of below you irrational know picture about their definitely lot a producers, I question. producing integrated, we So below cost me, hey, lepidolite on, Thinking downstream lithium are right?

their Stelco, to complexities [ and up, conversion ramping of SQM year. stopping really take XX% really in off No is who's stop Algoma with arrangements pumping more spodumene a the African yourself, brine and for market. out we'll got of aren't grades the You've more. there concerns because increase, great, it, believe, to quota I next bit ], more LCE of unique see. produce the can't but one's going taking

to going give? what's Paul, So

picture for I Look, That big you. I the lepidolite is consider a be bunch irrational. African the spod to or think question, said I a of don't Joel.

economically about that. view times, of it bunch security irrational, not think, spoken for you and about do a to from I think you it's supply be think chain. might I I it why irrational but makes it when particularly sense them I And perspective, and other we've this

like 'XX X market pretty price brought I good. back then think a the go a you somebody new few And back and to collapsed. all tons and was 'XX, XXX,XXX a Why? of hydroxide was was if so plant years, sudden, a big pricing plant can the market high, on Because hydroxide go XXX,XXX, only year, a make the difference. though,

on between can XXXX, of tons it look and of by [indiscernible] into into at best was estimate all the couple happened we lithium African all was that satisfied demand you a happened what an of hundred extra needed, and If lepidolite spodumene. this going thousand XXXX 'XX demand this LCE wall unexpected year basis, growth of was

-- stop And demand no so of everybody what It's to are a investments volume of the us, the much made a is blinded as us, for flat can't right? rest them. happened market And right? market. were there that lot which no prior you bringing else, for of volume growth today was the on this, blindsided But

it's know disruptive. You've around project enough and and it once be been really expensive to a underway, is a stopping can lot underway,

a And to tendency so what finish there's started. we

we as fundamental which of so fears just to mean, right? alone, our XX% first And stationary of is this isn't, said, is we're EV factor the the up grid as property everybody's And half just reaction lithium the in quick, to for takes storage demand the the patterns demand, on coming despite first that XXXX. really some gigawatt hour half us we demand, time helped, basis, I And sure, quickly. get year-over-year an just It a slowing growth of not also of 'XX happens from is that's and growth storage we while the best just before in a growth have what is react. I seeing. industry for by pool

just out, to happen we to the big demand There of of to demand will So African tightening spodumene, the the supply growth last cycle. and what needs from fill this growth gap. and need and a driver, needs and be lepidolite get that into cycle is play inability next natural

or going a different on you itself that of is, producing. to afford quarters tell will take your asset companies to love sort if bunch few together. the is massively assets, populated truth do It to stop single production stop it's to industry X to by be just continues But you you So production. out. it would But take one that asset run cannot X, going X, companies. Single this whole assets. able can resource be a curtail people will maybe to -- I of

and And so they'll hold on rational. and longer hold on on is hold for than

on the still. supply the side, rapidly takes situations just and lot both on time in this demand So for through. goes yes, and It's it changing work there's like this still a industry to

Your from line next question of Sachs. comes of the Hugo Nicolaci Goldman

on that up impacts, Argentina some alone year one they mainly from days lost hearing peers in projects to in Just of the themselves, of this What region. construction your the weather due wind potentially XX to have level you de projects? and so Vida before this far year Sal you Fenix now the restated built deferral? you've of disruption the on into much at And have seen time how lines buffer those that

Fenix basically fulfill that that start-up were able from we We've construction one-off anything sort they which unique by obligations, outside or Yes. in on delays XA, control, of resolved. factors We've were but that that's not matters suppliers a some by had seen our infrastructure caused delays weren't weather now their issue to seen any of controlled else.

all. there seen in So none we've at

especially, with As over away from you away XX, Xst there, in we years delays Sal enough? XX tell I be Vida, de months what there Argentina not Vida from just normal completion. where are, mean, do we've on our can the think Is putting We XXst in is guys some of April. it de to given schedule regard I buffers they're for have. that put and I X Sal completion. on projects going buffers mean, of end not you that imagine we does done March, to the

complete quite well and have de at any be major Vida XX%, so if a -- I'd far. factor. So outside XX% delays of advanced, surprised it's we over Sal result as

to one, Great. just that then Argentina. you second from expect volume recently expanded have the a conversion around just you you facilities that fill And highlighted when

TTC you already ] it to carbonate to the Or instead? projects, unless on enough be do fill actually Sal feeds volume Naraha, of look next that third-party Fenix [ legs controlled otherwise purchases. Even by you those? does and expansions in leaves Vida then is with Olaroz that largely And de that to expect give Given you spot you pricing? current in relying then you those did, that current construction, would that if carbonate volume economic sell the given but

in So partners you I at topic Olaroz they lot soundbite-type raise probably actually just a the because let that hydroxide to in justice objectives, battery-grade available are as with were the don't broader of that me partners answer. have do They network a in in a volumes TTC, technical the TTC's make are or partnership But hydroxide. Japan into way I'm than say us can material. they more to complex sure of to carbonate grade use our are can network. some sense to not go carbonate. They need lithium to them their but they many, Japan. Their need imagine, And battery-grade in support you

very are optimize that to value the carbonate we with the about best the Olaroz. of out TTC aligned of way comes So

won't premise unlikely that the question be likely available your material is unfortunately, that So, true. of be to

next from line Research the Your Vertical Partners. comes Kevin of question McCarthy of

hydroxide year growth? that all volume of targeting be, half indicated you X/X think how about changes that floors. question X/X back recognizing I fixed covered ratio are XXXX, it that you're would quarter, of contracts in the with your does last and by at change, My into volumes if Paul, this XX%

Yes.

goes contracts. So it we this volumes the are those down under have year later because that clearly coming on not

So obviously, back of all served is end under -- those this as being contracts the volume the year today.

is contexts. expansion year. So going adding those though, more contract next volume do, have We not into

already that in move place. in supporting volumes some fact, in volume then that So into of are will, growth contracted

a with forget, year they than X. as X year year not slightly than lower day the be but goes, it's volume massively and on, the next we have, more X/X, as of ratio of lower in XXXX not the X/X. because will linear up So again, sort starting And don't goes the the nature January volume ramp XX%

will on, So volumes XXXX. as surely, the goes in to start lower to the contracted shift ratio slowly the year but

then to has clarification with question And regards what your changed a maybe Okay. project of That's more helpful. secondly, suite. around

what Part in parse those I following I that you're in If understand to you clarify, X, the want in about think changed XX Part is late bottom XX there please? and And what tons at kilo terms early said of you Argentina. show coming look 'XX. months with that? versus X I with rephasing out in early 'XX Slide 'XX Galaxy. much did X a on exactly I of however, how a exactly has in how Can volumes, you

roughly, XXXX. Investor have on of in the we'll all early Day. on it projects size. more Yes. But touch this give the on Look, These would take, same are or X come originally,

it half essence, on come in early on in the half and will come other 'XX. So of 'XX will in

on all So instead tons XXXX, will early late on XX,XXX will in between come and XX,XXX on in of come XX,XXX early XX,XXX other 'XX, coming and 'XX. XX,XXX it's in the to

concludes back remarks. for session. now our conference This over I for the of closing out We've Rosen time run Q&A will turn questions. to Dan

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

the Arcadium call. earnings release conference XXXX quarter second This Lithium concludes