Li-Cycle Reports Q1 2023 Sales Decline, Missing Consensus Amid Lower Nickel And Cobalt Prices


Li-Cycle Holdings Corp LICY reported Q1 2023 sales of $3.6 million, down from $8.0 million, missing the consensus of $6.3 million.

  • Revenues experienced a decline due to a decrease in nickel and cobalt prices, which also included an unfavorable non-cash fair value adjustment of $4.1 million.
  • Revenue from product sales and recycling services (before fair market value adjustments) rose to $7.7 million from $3.6 million a year ago, led by higher sales volume and a favorable mix. 
  • The EPS loss of $(0.22) missed the consensus loss of $(0.16).
  • Li-Cycle held $409.2 million in cash and cash equivalents as of the quarter's end. 
  • Adjusted EBITDA loss stood at $(35.2) million, which widened from $(19.5) million for the prior year due to higher expenses related to the global Spoke network expansion and the Rochester Hub construction.
  • In April, Li-Cycle inked a long-term battery recycling relationship with VinES in Vietnam
  • This month, the company joined forces with Glencore PLC GLNCY to co-develop Portovesme Hub in Italy.
  • "Building on our strong partnership with Glencore, we plan to jointly study the feasibility of a European Hub that is expected to be the largest source of recycled battery-grade lithium, nickel, and cobalt in the continent. The development plan leverages Glencore's existing metallurgical site, at Portovesme, in Sardinia, Italy, to process up to 50,000 to 70,000 tonnes of black mass annually, or the equivalent of up to 600,000 electric vehicles." said President and CEO Ajay Kochhar.

Price Action: LICY shares are trading lower by 8.50% at $4.52 on the last check Monday.

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