ALB - Arcadium Lithium: A Middling Quarter But A Buy Nonetheless

2024-05-08 18:17:08 ET

Summary

• Arcadium Lithium, Inc. (ALTM) published its Q1 results on the 7th of May, post market hours.
• ALTM's low exposure to the spot market, enabled it to deliver decent EBITDA margins in Q1, but the benefits of this will fade through the year.
• ALTM looks set to deliver $60-$80m of cost savings this year.
• ALTM's low-cost prowess and diversified product portfolio will put it in a better position to withstand current industry pressures.
• The stock offers good value on an EV/EBITDA basis, and the downtrend on the daily charts looks to have abated.

Introduction

The stock of Arcadium Lithium, Inc. ( ALTM ), one of the most prominent vertically integrated lithium players in the world, hasn’t done too well since it came into existence earlier this year. For the uninitiated, ALTM is the product of an all-stock merger between Allkem, and Livent, which puts it among the top 5 lithium producers in the world. Nonetheless, since it made its debut on the bourses (markets), the stock has lost 30% of its value, even as the benchmark index and other global metals and mining stocks have notched up positive gains of mid-single-digits to double-digits....

For further details see: