Piedmont Lithium Reports Q3 2024 Results

NAL Production & Safety Records; Strong Commercial Performance for Company

   -- 
 NAL set new quarterly record for production (52,100 dmt) and mill 
      utilization (91%); lithium recovery steady (67%) 
 
 
   -- 
 Piedmont had record shipments of approximately 31,500 dmt of spodumene 
      concentrate and recorded revenue of $27.7 million in Q3'24 
 
 
   -- 
 Piedmont achieved industry-leading price realizations in Q3'24 in 
      difficult market environment 
 
 
   -- 
 Piedmont continued to improve operating costs and reduce capital 
      expenditures and investments in Q3'24 
 
 
   -- 
 Carolina Lithium positioned to benefit from the U.S. Department of the 
      Treasury's 45X final rule guidance 
 
 
   -- 
 Ewoyaa Lithium Project received Ghanaian Mine Operating Permit and EPA 
      Permit 
 
 
   -- 
 Piedmont recorded $64.4 million in cash and cash equivalents as of 
      September 30, 2024 
 
 
   -- 
 Piedmont entered into a non-dilutive $25 million working capital 
      facility with a trading company partner 
 
BELMONT, N.C.--(BUSINESS WIRE)--November 12, 2024-- 

Piedmont Lithium Inc. ("Piedmont," the "Company," "we," "our," or "us") (Nasdaq: PLL; ASX: PLL), a leading North American supplier of lithium products critical to the U.S. electric vehicle supply chain, today reported its third quarter 2024 financial results.

Piedmont shipped approximately 31,500 dry metric tons ("dmt") of spodumene concentrate (5.4% Li(2) O) associated with spot shipments in Q3'24 and recognized $27.7 million in revenue. The Company's realized price per ton was $878 in Q3'24, which outperformed industry peers during the quarter. Piedmont expects to ship approximately 41,000 to 55,000 dmt of spodumene concentrate in Q4'24, resulting in total shipments of approximately 102,000 to 116,000 dmt in 2024(1) . Our Q4'24 shipments are expected to be long-term customer shipments or spot shipments structured to minimize downside risk. Production at North American Lithium ("NAL") supports the Company's Q4'24 shipment guidance.

NAL, North America's largest operating spodumene mine, continued to achieve quarterly production records in Q3'24 following the achievement of steady-state production in June 2024. NAL produced approximately 52,100 dmt of spodumene concentrate during the quarter, up 5% from Q2'24, with recoveries remaining relatively steady at 67% in the quarter. Mill utilization achieved a new record high of 91%, benefiting from the recently completed crushed ore dome. The increased utilization rate also drove an improvement in unit operating costs, which declined by 15% quarter-over-quarter to US$729 when excluding the impact of inventory movements. Further, Sayona Mining Limited ("Sayona Mining") reported an increase to NAL's mineral resource estimate in Q3'24, including a significant increase in resources in the measured and indicated categories. NAL is jointly owned by Piedmont (25%) and Sayona Mining (75%).

Carolina Lithium remains the focus of the Company's U.S. project development strategy following the receipt of the state mining permit in Q2'24 and the subsequent decision to shift the proposed Tennessee Lithium conversion capacity to the North Carolina project. Piedmont continues to pursue an air permit application currently under review by North Carolina's Division of Air Quality, which would allow for up to 60,000 tons per year of lithium hydroxide production at Carolina Lithium. In addition, the U.S. Department of the Treasury recently issued final rules for the Inflation Reduction Act's manufacturing credit (45X), which included modifications that could materially improve the after-tax economics of U.S. projects like Carolina Lithium.

 
(1) The timing of shipments is subject to shipping logistics, port and weather 
conditions, and customer requirements. 
 

In Q3'24, our joint venture Ewoyaa Lithium Project ("Ewoyaa") in Ghana received an environmental permit from Ghana's Environmental Protection Agency ("EPA Permit") and in October, received a Mine Operating Permit from the Ghanaian Minerals Commission. Development of the project remains subject to the outcome of the mining lease ratification by the Ghanaian Parliament, ongoing design work, additional regulatory approvals, prevailing market conditions, and project financing.

"We are very pleased with the continued quarterly progress at NAL, with new records set in Q3 for production and mill utilization rates. Production in Q3 benefited from the investments made at NAL during prior quarters, particularly the recently completed crushed ore dome, the availability of which also drove an improvement in unit operating costs, " said Keith Phillips, President and CEO of Piedmont Lithium. "In addition to the progress in operations, Sayona Mining announced a significant increase to the mineral resource estimate for NAL this quarter, indicating the potential for a brownfield expansion of annual production at some future point."

"The third quarter was a successful one for Piedmont with a quarterly record of spodumene concentrate shipped via well-placed spot shipments that took advantage of the futures market. We expect to exceed Q3's shipment record in Q4'24 to round out an excellent second half of the year," said Phillips. "On the development side, Ewoyaa made key strides on the regulatory front, and we were heartened by the recent positive news from the U.S. Treasury that should provide material improvement to the economics of Carolina Lithium."

"While lithium markets remain challenging, we have been successful in strengthening our financial position through reductions in operating costs, minimized spending on discretionary capital items, and the arrangement of low-cost working capital financing through a trading company partner," added Phillips.

Third Quarter 2024 Financial Highlights

All references to dry metric tons ("dmt") in this release relate to spodumene concentrate.

 
                              Units        Q3'24   Q2'24   Q3'23 
Sales 
-----------------------   --------------   ------  ------  ----- 
 Concentrate shipped        dmt thousands    31.5    14.0    29.0 
 -----------------------   ---------------  -----   -----   ----- 
 Revenue                     $ millions      27.7    13.2    47.1 
 -----------------------   ---------------  -----   -----   ----- 
 Realized price(1)              $/dmt         878     945   1,624 
 -----------------------   ---------------  -----   -----   ----- 
 Li(2) O content(2)               %           5.4     5.5     5.3 
 -----------------------   ---------------  -----   -----   ----- 
 Realized cost of 
  sales(3)                      $/dmt         794     900     805 
 
Profitability 
-----------------------   --------------   ------  ------  ----- 
 Gross profit                $ millions       2.7     0.6    23.8 
 -----------------------   ---------------  -----   -----   ----- 
 Gross profit margin              %           9.6     4.7    50.4 
 -----------------------   ---------------  -----   -----   ----- 
 Net (loss) income           $ millions     (16.7)  (13.3)   22.9 
 -----------------------   ---------------  -----   -----   ----- 
 Diluted EPS                      $         (0.86)  (0.69)   1.19 
 -----------------------   ---------------  -----   -----   ----- 
 Adjusted net (loss) 
  income(4)                  $ millions      (8.1)  (12.7)   16.9 
 -----------------------   ---------------  -----   -----   ----- 
 Adjusted diluted EPS(4)          $         (0.42)  (0.65)   0.88 
 -----------------------   ---------------  -----   -----   ----- 
 Adjusted EBITDA(4)          $ millions      (8.7)  (13.2)   16.2 
 
Cash 
-----------------------   --------------   ------  ------  ----- 
 Cash and cash 
  equivalents(5)             $ millions      64.4    59.0    94.5 
 
 
___________________________________________________________ 
(1)    Realized price is the average estimated price, net of certain 
       distribution and other fees, which includes reference pricing data up 
       to the respective period end and is subject to final adjustment. The 
       final adjusted price may be higher or lower than the estimated average 
       realized price based on future price movements. 
(2)    Weighted average Li(2) O content for shipments made during the 
       respective period. 
(3)    Realized cost of sales is the average cost of sales including 
       Piedmont's offtake pricing agreement with Sayona Quebec Inc. ("Sayona 
       Quebec") for the purchase of spodumene concentrate at a market price 
       subject to a floor of $500 per dmt and a ceiling of $900 per dmt, 
       adjustments for product grade, freight, and insurance. 
(4)    See non-GAAP Financial Measures at the end of this release for a 
       reconciliation of non-GAAP measures. 
(5)    Cash and cash equivalents are reported as of the end of the period. 
 

Third Quarter and Recent Business Highlights

Piedmont Lithium

   -- 
 Shipped approximately 31,500 dmt (5.4% Li2O) of spodumene concentrate 
      from NAL to customers in Q3'24 and recognized $27.7 million in revenue 
      with a realized sales price of $878 per dmt. On an SC6 equivalent basis, 
      our realized price per metric ton was $976. 
 
 
   -- 
 In July 2024, Piedmont streamlined its U.S. lithium hydroxide 
      production plans in favor of deploying capital and technical resources 
      more efficiently by shifting our proposed Tennessee Lithium conversion 
      capacity to Carolina Lithium. We plan to leverage the North Carolina 
      project by adding a second lithium hydroxide production train as part of 
      a phased development approach on a measured timeline subject to market 
      conditions. 
 
 
   -- 
 In September 2024, we entered into a working capital facility with a 
      trading company partner, whereby we may borrow up to $25.0 million based 
      on the value of committed volumes of spodumene concentrate shipped within 
      the following twelve months. Borrowings are credited against the 

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