Letter

5 Oct 2024

Letter to the Board (LTM)

Blackwattle Mid Cap Portfolio Managers Tim Riordan and Michael Teran recently engaged with Arcadium Lithium (LTM) regarding their views on LTM’s valuation opportunity and feedback on reports of potential talks with Rio Tinto for the acquisition of LTM.

In a letter to Arcadium’s board, Tim and Michael urged the company to reject any bid that doesn’t sit around the $US8 billion mark, noting a sharp decline in the share price on the back of the lithium price crash.

“Arcadium Lithium’s share price has fallen 63 per cent this year on weak lithium markets and reached an all-time low last month,” Any offer would have to be at a “significant premium” to realise the company’s growth potential.

“Global lithium markets appear to have bottomed out, with lithium chemical indices stabilising, and in our opinion, the timing of this potential sale could not be at a more value destructive period for shareholders.”

Click here to view letter to the LTM Board

Click here to view AFR article

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