Arcadium Lithium PLC

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview: Arcadium Lithium PLC (ASX: LTM) is a global lithium chemicals producer with capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. It has operations around the world with facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom, and the United States. Kalkine’s Resources Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Management Insights

1.3 Top 10 Shareholders:

The top 10 shareholders together form 10.62% of the total shareholding. Mirae Asset Global Investments (USA) LLC and Vanguard Investments Australia Ltd are holding maximum stakes of 3.22% and 2.46%, respectively.  

1.3 Key Metrics: During Q1 FY24, revenue was US$261 million and reported attributable GAAP net income was US$15.6 million, or 1 cent per diluted share. Below is captured other metrics:

Section 2: Business Updates, Financial Highlights, and Historical Financial Trend

2.1 Recent Business Updates:

2.2 Results Highlights: Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

LTM’s stock price has gained around 7% in the last month; however, and it has declined nearly 34% in the past 6 months. The stock has a 52-week low and 52-week high of AUD 4.710 and AUD 11.570, respectively and is currently trading lower than the 52-week high-low average. LTM was previously covered in a report dated 19 June 2024.

 (Source: REFINITIV, Analysis by Kalkine Group)

4.2 Fundamental Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 July 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.