FMC Corp (FMC) Revises Operating Agreements In Argentina
Zacks Investment Research | Jan 04, 2018 09:25PM ET
FMC Corporation (NYSE:FMC) has revised its operating agreements in Argentina. The move will enable the company to expand production and complete a major step toward the intended separation of its lithium business this year.
The amended operating agreements update FMC Corp’s corporate social responsibility programs and royalties in Argentina and remove restrictions that could prevent a change of control over its lithium business. Notably, the revised royalties and CSR programs are consistent with the current commitments.
FMC Corp expects to double its production in Argentina over the next several years with total annual output to be more than 40,000 metric tons of lithium carbonate equivalents.
Notably, FMC Corp’s debottlenecking projects in Argentina contributed to its third-quarter results. The completed project has a deferred run rate of 2,000 tons per annum of carbonate and will be at the full run rate of 4,000 ton by the end of 2018.
During third-quarter earnings call, FMC Corp stated that it will continue to move ahead with the expansion in Argentina where it aims to add at least 20,000 tons of lithium carbonate capacity with an initial investment between $250 and $300 million. The engineering work is under progress and discussions are on with the local authorities to finalize these plans. The company will provide an update on plans to separate its lithium business and expand its Argentina operations during its fourth-quarter 2017 earnings call.
Shares of FMC Corp have gained 6.9% in the last three months, outperforming the Original post
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