Li-Cycle(US:LICY)2024-03-15 21:24Production and Revenue - Li-Cycle produced 6,825 tonnes of black mass in 2023, 1.5 times the production level of 2022, exceeding the annual guidance of 5,500 to 6,500 tonnes[4] - Total revenue for 2023 was $18.3 million, an 11% increase from 2022, while product and recycling revenue reached $23.6 million, a 34% increase[4] - Recycling service revenue surged by 338% year-over-year to $5.7 million, driven by new service contracts[7] - Total revenue for the year ended December 31, 2023, was $18.3 million, a significant increase from $13.4 million in 2022, representing a year-over-year growth of 36.6%[30] - Product revenue reached $12.6 million for the year ended December 31, 2023, compared to $12.1 million in 2022, indicating a growth of 4.1%[30] - Recycling service revenue increased to $5.7 million in 2023 from $1.3 million in 2022, marking a substantial growth of 338.5%[30] Expenses and Losses - Cost of sales increased to $81.8 million in 2023, up from $55.2 million in 2022, primarily due to higher raw material acquisition costs[8] - Selling, general & administrative expenses rose to $93.4 million, compared to $81.3 million in 2022, influenced by higher personnel and operational costs[9] - Research and development costs increased to $5.7 million, up from $2.7 million in 2022, mainly for the Portovesme Hub[10] - Net loss for 2023 was approximately $138.0 million, compared to a loss of $70.8 million in 2022, attributed to higher costs[11] - Adjusted EBITDA loss was approximately $156.4 million, worsening from a loss of $118.5 million in 2022, driven by increased costs related to business expansion[12] - The net loss for the year ended December 31, 2023, was $138.0 million, compared to a net loss of $50.3 million in 2022, reflecting a deterioration in financial performance[30] - Total cost of sales for the year was $81.8 million, up from $48.4 million in 2022, resulting in a 69.0% increase[30] - Research and development expenses were $5.7 million for the year ended December 31, 2023, compared to $2.4 million in 2022, representing an increase of 137.5%[30] Financial Position - As of December 31, 2023, Li-Cycle's total assets amounted to $886.0 million, a slight decrease from $892.7 million on December 31, 2022[28] - Current assets decreased significantly from $634.9 million in December 2022 to $149.0 million in December 2023, primarily due to a reduction in cash and cash equivalents from $517.9 million to $70.6 million[28] - Total liabilities increased from $391.1 million in December 2022 to $509.6 million in December 2023, with convertible debt rising to $288.1 million[28] - The accumulated deficit grew from $133.6 million in December 2022 to $271.6 million in December 2023, indicating ongoing financial challenges[28] - Li-Cycle's equity decreased from $501.6 million in December 2022 to $376.4 million in December 2023, reflecting the impact of increased liabilities and accumulated losses[28] - The company reported a significant increase in accounts payable, rising from $20.1 million in December 2022 to $76.4 million in December 2023[28] - Li-Cycle's cash and cash equivalents saw a dramatic decline of approximately 86.4% from $517.9 million in December 2022 to $70.6 million in December 2023[28] - Cash, cash equivalents, and restricted cash at the end of the year were $80.3 million, down from $517.9 million at the beginning of the year, indicating a decrease of 84.5%[31] - Net cash used in operating activities for the year was $99.8 million, compared to $77.0 million in 2022, showing an increase of 29.0%[31] Investments and Future Plans - Li-Cycle announced a strategic investment of $75.0 million from Glencore, expected to close around March 25, 2024[4] - The company is working with the U.S. Department of Energy on a conditional commitment for a loan of up to $375.0 million[4] - The company is focused on expanding its recycling capacity and efficiency, with plans to process black mass at future hubs[25] - Li-Cycle anticipates significant expenses and may not achieve profitability in the near term, highlighting the need for additional funding[25] - The company is facing risks related to its ability to manage global growth and develop its Rochester Hub as planned[25] Capital Expenditures - The company incurred $334.9 million in capital expenditures for property, plant, and equipment during the year, compared to $190.1 million in 2022, reflecting a 76.1% increase[31] Financial Instruments - The company reported a fair value gain on financial instruments of $22.1 million for the year, compared to a loss of $67.5 million in 2022, indicating a significant improvement in financial instrument valuation[30]