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Albemarle (NYSE:ALB) +1.9% pre-market Wednesday after asserting a collection of cost-cutting strikes designed to enhance money movement within the close to time period and generate long-term monetary flexibility in response to altering circumstances within the lithium worth chain.
The lithium producer mentioned it’s trying to cut back prices by ~$95M/12 months by reducing bills and its workforce, and expects to understand greater than $50M in value financial savings this 12 months.
Albemarle (ALB) mentioned it expects 2024 capital spending to drop to $1.6B-$1.8B from $2.1B in 2023, reflecting “a re-phasing of bigger initiatives within the close to time period to deal with these which might be considerably progressed, close to completion and in startup.”
The corporate plans to prioritize allowing actions on the Kings Mountain spodumene useful resource whereas deferring spending on the Richburg mega-flex lithium conversion facility and the Albemarle Expertise Park in North Carolina
Albemarle (ALB) mentioned it can file a cost in Q1 associated to the actions however didn’t specify the quantity.
The proactive measures are meant to “re-phase progress investments and optimize value construction to generate long-term monetary flexibility and unlock greater than $750M of money movement over the close to time period,” the corporate mentioned.