Livent Posts Q3 Effects, Says Capability Expansions Stay on Monitor


Sturdy call for coupled with upper lithium costs allowed top-producing miner Livent (NYSE:LTHM) to put up a 124 p.c build up in its year-on-year income within the 3rd quarter.

Livent operates its lithium trade within the Salar del Hombre Muerto in Argentina, the place it’s been extracting lithium for greater than two decades. The lithium carbonate produced serves because the feedstock for Livent’s downstream lithium hydroxide manufacturing. Livent may be lately generating certified battery-grade lithium hydroxide in each america and China.

Livent’s 3rd quarter income hit US$231.6 million, up 6 p.c from the former quarter. In the meantime, the corporate’s adjusted EBITDA got here in at US$110.8 million, 17 p.c upper than the prior quarter.

“Lithium call for has remained powerful in spite of some near-term provide chain disruptions and international macro considerations,” mentioned CEO Paul Graves in a commentary on Tuesday (November 1). “Revealed lithium costs moved upper within the 3rd quarter amid persisted favorable marketplace prerequisites. Livent completed upper learned costs and delivered higher volumes to shoppers.”

Closing yr, lithium costs climbed at the again of sturdy call for from the electrical automobile business. Via the top of Q3 of this yr, costs had higher greater than 123 p.c, consistent with Benchmark Mineral Intelligence information.

Even so, the Philadelphia-based corporate has revised its adjusted EBITDA to be within the vary of US$350 million to US$370 million, slicing the highest finish of its expectancies via US$5 million. The corporate additionally trimmed its forecast income to a span of US$815 million to US$845 million for 2022, in comparison to earlier steering of US$800 million to US$860 million.

Following the discharge of its 3rd quarter effects, Livent’s proportion value fell virtually 9 p.c.

In relation to its ongoing expansions, the corporate mentioned it stays on course to ship all prior to now introduced capability expansions.

The primary 10,000 metric ton (MT) growth of lithium carbonate capability in Argentina is anticipated to be automatically whole via the top of 2022, and in manufacturing via 2023’s first quarter. Following on from that, the corporate mentioned it’s set so as to add the following 10,000 MT of lithium carbonate capability in Argentina via the top of 2023.

Lithium hydroxide capability may be forecast to extend, and the miner has began paintings at a China-based location so as to add an extra 15,000 MT of lithium hydroxide capability via the top of 2023.

Moreover, the corporate’s 5,000 MT lithium hydroxide growth at Bessemer Town was once automatically finished within the 3rd quarter, and Livent has begun running with shoppers to supply and qualify merchandise.

In Quebec, Livent owns 50 p.c of Nemaska, which is anticipated to have 34,000 MT of battery-grade lithium hydroxide nameplate capability and over 30 years of mine lifestyles. The primary “significant” manufacturing from the undertaking is on course for 2026.

Supported via favorable lithium marketplace prerequisites, the corporate’s proportion value is up greater than 18 p.c year-to-date. Different US, Canadian and Australianlithium shares have additionally observed year-to-date positive factors.

As of 9:00 a.m. EST on Wednesday (November 2), stocks of Livent have been buying and selling at US$28.51.

Do not omit to observe us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, grasp no direct funding pastime in any corporate discussed on this article.



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