- Reports Record Financial Performance in the First Quarter
- Nemaska Lithium Achieves Significant Milestones
- Raises 2023 Full Year Revenue and Adjusted EBITDA Guidance
According to the company’s website press release on May 2, 2023, Livent Corporation (NYSE: LTHM) today reported results for the first quarter of 2023.
First quarter revenue was $253.5 million, up 16% and up 77% from the fourth quarter of 2022 and the prior year's quarter, respectively. Reported GAAP net income was $114.8 million, compared to $82.7 million and $53.2 million in the previous quarter and the prior year's quarter, respectively, or 55 cents per diluted share. Adjusted EBITDA was $157.4 million, 46% above the previous quarter and roughly three times the prior year's quarter, and adjusted earnings per diluted share (1) were 60 cents. Continued strength in customer demand supported higher average realized prices across all products in the first quarter.
"Livent achieved record revenue and profitability in the first quarter driven by higher realized lithium pricing and strong demand from our customers," said Paul Graves, president and chief executive officer of Livent. "We continue to expect strong financial performance in 2023 supported by pricing visibility from existing customer contracts. The Company remains on schedule to deliver its announced capacity expansions, which will result in an incremental 4,000 metric tons of volume available for sale in 2023, and an incremental 10,000 metrics tons available in 2024 year-over-year. We continue to work closely with our customers who remain focused on securing larger and longer-term volume commitments from us."
Nemaska Development Update
The development of Nemaska Lithium, an integrated lithium hydroxide project located in Québec, Canada in which Livent is a 50% shareholder, continues to advance as expected. The Board of Nemaska Lithium approved commencement of construction of the 34,000 metric ton hydroxide facility at Bécancour, and the acceleration of mining operations at Whabouchi. Commercial sales of spodumene concentrate are expected to begin in 2025 and continue until the hydroxide facility comes into full production. First production of lithium hydroxide is expected in late 2026. Nemaska Lithium continues to be a highly attractive project that is strategically located and has access to low-cost, green hydro-electric energy. Further details pertaining to the project, along with supporting cost information, will be provided by Nemaska Lithium in a feasibility study expected to be released in the second quarter.
Commercial Update
In the first quarter, Livent and BMW Group agreed to an amendment and extension of their existing supply agreement. As part of this, total lithium hydroxide volumes delivered per year will increase, and the contract will now run through the end of 2028. The two companies continue to work together in multiple areas, including sustainability and technology initiatives and mutual support for expansion projects, and Livent believes this will become a growing model for our industry.
Livent has also been appointed by Nemaska Lithium on an exclusive basis to engage in sales and marketing efforts on its behalf. Livent expects that Nemaska Lithium will enter into its first customer agreements in 2023.
