Piedmont Lithium Reports Q2 2024 Results
NAL Achieves Steady-State Production; Shipments Shift to Contract Customers
- NAL set quarterly records in Q2’24 for production (up 23% QoQ), lithium recovery (68%), and mill utilization (83%)
-
NAL achieved steady-state production in
June 2024 ; H2’24 production forecast supportsPiedmont shipping guidance -
Piedmont revenue of$13.2 million on sales of approximately 14,000 dmt of spodumene concentrate in Q2’24 -
Piedmont plans H2’24 customer shipments of approximately 96,500 dmt of spodumene concentrate -
$59.0 million in cash as ofJune 30, 2024 ; capital expenditures and investments to significantly decrease in H2’24 -
Carolina Lithium mining permit received in Q2’24 from the state of
North Carolina , renewing funding discussions -
U.S. lithium hydroxide production strategy consolidated to leverage capital and technical resources
Piedmont shipped approximately 14,000 dry metric tons (“dmt”) of spodumene concentrate (~5.5% Li2O) associated with long-term customer contracts in Q2’24. Realized price per ton was
NAL, North America’s largest operating spodumene mine, continued to achieve quarterly production records as the operation reached steady-state production in
Following the receipt of our Carolina Lithium state mining permit in Q2’24, and in response to changing market conditions, we have consolidated our
For our
“NAL continues to demonstrate its potential as an excellent asset, achieving steady-state production, and exhibiting future promise with new, high-grade drill results and the completion of the crushed ore dome. In H2’24, we expect to sell the majority of our 2024 NAL offtake, prioritizing contract customers and structuring spot shipments to limit our downside exposure. Capital allocations and investments in affiliates are anticipated to be modest given the completion of the NAL ramp-up and expected timing of Ewoyaa development,” said
“Given the prevailing market realities, we have taken steps to help ensure our long-term competitive position and the preservation of the upside of our assets. These steps include the decision to consolidate our
Phillips continued, “While lithium prices have remained depressed, we are encouraged by the growth across the electrification sector and the long-term potential of the lithium market. The world continues to move toward electrification, which will require exponentially more lithium than is produced today in the
Second Quarter 2024 Financial Highlights
All references to dry metric tons (“dmt”) in this release relate to spodumene concentrate.
|
Units |
|
Q2’24 |
Q1’24 |
Q2’23 |
|||
Sales |
|
|
|
|
|
|
|
|
Concentrate shipped |
dmt thousands |
|
14.0 |
|
15.5 |
|
— |
|
Revenue |
$ millions |
|
13.2 |
|
13.4 |
|
— |
|
Realized price(1) |
$/dmt |
|
945 |
|
865 |
|
— |
|
Li2O content(2) |
% |
|
5.5 |
|
5.5 |
|
— |
|
Realized cost of sales(3) |
$/dmt |
|
900 |
|
820 |
|
— |
|
|
|
|
|
|
|
|
|
|
Profitability |
|
|
|
|
|
|
|
|
Gross profit |
$ millions |
|
0.6 |
|
0.7 |
|
— |
|
Gross profit margin |
% |
|
4.7 |
|
5.2 |
|
— |
|
Net loss |
$ millions |
|
(13.3) |
|
(23.6) |
|
(10.6) |
|
Diluted EPS |
$ |
|
(0.69) |
|
(1.22) |
|
(0.55) |
|
Adjusted net loss(4) |
$ millions |
|
(12.7) |
|
(11.9) |
|
(14.3) |
|
Adjusted diluted EPS(4) |
$ |
|
(0.65) |
|
(0.61) |
|
(0.75) |
|
Adjusted EBITDA(4) |
$ millions |
|
(13.2) |
|
(12.4) |
|
(14.8) |
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
|
|
|
Cash and cash equivalents(5) |
$ millions |
|
59.0 |
|
71.4 |
|
88.7 |
|
___________________________________________________________ | |
(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 Li2O 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 |
(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. |
Second Quarter and Recent Business Highlights
- Shipped approximately 14,000 dmt (~5.5% Li2O) of spodumene concentrate from NAL to customers in Q2’24.
-
In
July 2024 , Piedmont streamlined itsU.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 theNorth 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.
North American Lithium (
-
In Q2’24, NAL achieved record quarterly production of approximately 49,700 dmt and shipped approximately 27,700 dmt, of which approximately 14,000 dmt were sold to
Piedmont .
- In Q2’24, production at NAL increased nearly 23% compared to the prior quarter, recovery rates improved to 68%, and mill utilization increased to 83%, up 10% from the previous quarter. Commissioning of the crushed ore dome was completed, and operations are expected to produce at steady-state for the remainder of 2024.
- In Q2’24, high-grade drill results from the 2023-2024 drill program at NAL demonstrated the potential for a significant upgrade to the mineral resource estimate. Assays identified multiple new, high-grade lithium zones beyond the planned pit shell model, with intercepts at thicker and higher grades than previously encountered. Mineralization within the pit shell model showed continuity and consistency in grade and thickness.
-
Concentrate produced and shipped by NAL and concentrate shipped by
Piedmont :
|
|
Share |
|
Units |
|
Q2’24 |
|
Q1’24 |
|
Q2’23 |
|
|
|
|
|
|
|
|
|
|
|
Concentrate shipped |
100% |
|
dmt thousands |
|
14.0 |
|
15.5 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
North American Lithium |
|
|
|
|
|
|
|
|
|
|
Concentrate produced |
100%(1) |
|
dmt thousands |
|
49.7 |
|
40.4 |
|
29.6 |
|
Concentrate shipped |
100%(2) |
|
dmt thousands |
|
27.7 |
|
58.0 |
|
— |
___________________________________________________________ | |
(1) Concentrate produced represents 100% of NAL’s production. | |
(2) Concentrate shipped represents 100% of NAL’s shipments, inclusive of shipments to Piedmont. | |
Note: The table above reports quarterly and year-to-date information in accordance with Piedmont’s fiscal year reporting, which is on a calendar-year basis. Concentrate produced and concentrate shipped (above) are reported in the periods in which activities actually occurred. For financial statement purposes, Piedmont reports income (loss) from its 25% ownership in Sayona Quebec, which includes NAL, on a one-quarter lag. |
Carolina Lithium (
- Management is actively engaging in discussions with potential strategic partners who have expressed interest in project-level funding for Carolina Lithium. The goal of our partnership process is to advance the project through ongoing permitting and rezoning activities. The Carolina Lithium funding strategy also includes potential government financing options.
-
In
May 2024 , we received the finalized mining permit for the construction, operation, and reclamation of Carolina Lithium, allowing us to renew discussions with potential funding parties.
-
Piedmont is considering the timing of the local rezoning process, which is dependent upon the funding strategy, potential partnerships, project development plans, and market dynamics. Engagement continues with community stakeholders, including the
Gaston County Board of Commissioners .
-
In
July 2024 , the application to grant the Ewoyaa mining lease was submitted to the Ghanaian parliament to undergo the ratification process. In addition to parliamentary ratification, the project is subject to the receipt of a mine operating permit and approval by theEnvironmental Protection Agency of Ghana .
-
In
July 2024 , Piedmont mandated a financial advisor to develop a funding strategy that includes an offtake-partner process to support our share of Ewoyaa construction capital and minimize dilution to Piedmont shareholders. Negotiations have advanced inAtlantic Lithium ’s competitive offtake partnering process to secure funding for a portion of the joint venture’s annual production share.
Tennessee Lithium
-
Piedmont has converted the proposed Tennessee Lithium project plans to a second lithium hydroxide train as part of a phased development for Carolina Lithium. The combined conversion facilities should allow Piedmont to significantly increase
U.S. lithium hydroxide production capacity while deploying capital and technical resources more efficiently.
2024 Outlook
|
Units |
|
H1’24 |
|
Q3’24 |
|
Q4’24 |
|
Full Year 2024 |
Shipments(1) |
dmt thousands |
|
30 |
|
30 — 34 |
|
63 — 67 |
|
126 |
Capital expenditures |
$ millions |
|
9 |
|
2 — 3 |
|
1 — 2 |
|
12 — 14 |
Investments in and advances to affiliates |
$ millions |
|
23 |
|
5 — 7 |
|
5 — 6 |
|
33 — 36 |
_____________________________________ | |
(1) |
Quarterly shipping targets are rounded to the nearest thousand tons and may not total to 126,000 dmt due to rounding. |
NAL achieved full run-rate production in
We expect modest capital expenditures in H2’24, mainly related to Carolina Lithium. Investments in and advances to affiliates reflect cash contributions to Sayona Quebec and advances to
Safety and Sustainability
In Q2’24,
During the quarter,
Q2 2024 Piedmont Lithium Earnings Call
Date: |
|
Time: |
|
Dial-in (Toll Free): |
1 (800) 715-9871 |
Dial-in (Toll): |
1 (646) 307-1963 |
Conference ID: |
6860456 |
Participant URL: |
Piedmont’s earnings presentation and supporting material are available at: https://piedmontlithium.com/investors-overview.
About
Cautionary Note to U.S. Investors
Piedmont’s public disclosures are governed by the
The statements in the link below were prepared by, and made by, NAL. The following disclosures are not statements of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of or as described in securities legislation in
|
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(In thousands, except per share amounts) (Unaudited) |
||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Revenue |
|
$ |
13,227 |
|
$ |
— |
|
$ |
26,628 |
|
$ |
— |
Costs of sales |
|
|
12,601 |
|
|
— |
|
|
25,311 |
|
|
— |
Gross profit |
|
|
626 |
|
|
— |
|
|
1,317 |
|
|
— |
Exploration costs |
|
|
9 |
|
|
440 |
|
|
62 |
|
|
1,197 |
Selling, general and administrative expenses |
|
|
9,330 |
|
|
11,987 |
|
|
19,204 |
|
|
20,608 |
Total operating expenses |
|
|
9,339 |
|
|
12,427 |
|
|
19,266 |
|
|
21,805 |
Loss from equity method investments |
|
|
(4,910) |
|
|
(2,675) |
|
|
(10,350) |
|
|
(5,417) |
Loss from operations |
|
|
(13,623) |
|
|
(15,102) |
|
|
(28,299) |
|
|
(27,222) |
Interest income |
|
|
653 |
|
|
1,165 |
|
|
1,480 |
|
|
1,928 |
Interest expense |
|
|
(76) |
|
|
(11) |
|
|
(298) |
|
|
(26) |
Gain (loss) on sale of equity method investments |
|
|
— |
|
|
3,975 |
|
|
(13,886) |
|
|
7,250 |
Other (loss) gain |
|
|
(288) |
|
|
(17) |
|
|
965 |
|
|
(66) |
Total other income (loss) |
|
|
289 |
|
|
5,112 |
|
|
(11,739) |
|
|
9,086 |
Loss before income taxes |
|
|
(13,334) |
|
|
(9,990) |
|
|
(40,038) |
|
|
(18,136) |
Income tax (benefit) expense |
|
|
(2) |
|
|
649 |
|
|
(3,095) |
|
|
1,142 |
Net loss |
|
$ |
(13,332) |
|
$ |
(10,639) |
|
$ |
(36,943) |
|
$ |
(19,278) |
|
|
|
|
|
|
|
|
|
||||
Basic and diluted: |
|
|
|
|
|
|
|
|
||||
Loss per share |
|
$ |
(0.69) |
|
$ |
(0.55) |
|
$ |
(1.91) |
|
$ |
(1.02) |
Weighted-average shares outstanding |
|
|
19,370 |
|
|
19,187 |
|
|
19,348 |
|
|
18,857 |
|
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(In thousands, except per share amounts) (Unaudited) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
58,978 |
|
$ |
71,730 |
Accounts receivable |
|
13,320 |
|
|
595 |
Other current assets |
|
11,395 |
|
|
3,829 |
Total current assets |
|
83,693 |
|
|
76,154 |
Property, plant and mine development, net |
|
134,270 |
|
|
127,086 |
Advances to affiliates |
|
37,093 |
|
|
28,189 |
Other non-current assets |
|
1,865 |
|
|
2,164 |
Equity method investments |
|
82,719 |
|
|
147,662 |
Total assets |
$ |
339,640 |
|
$ |
381,255 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Accounts payable and accrued expenses |
$ |
5,894 |
|
$ |
11,580 |
Payables to affiliates |
|
81 |
|
|
174 |
Current portion of long-term debt |
|
642 |
|
|
149 |
Deferred revenue |
|
24,347 |
|
|
— |
Other current liabilities |
|
5,053 |
|
|
29,463 |
Total current liabilities |
|
36,017 |
|
|
41,366 |
Long-term debt, net of current portion |
|
2,067 |
|
|
14 |
Operating lease liabilities, net of current portion |
|
951 |
|
|
1,091 |
Other non-current liabilities |
|
980 |
|
|
431 |
Deferred tax liabilities |
|
— |
|
|
6,023 |
Total liabilities |
|
40,015 |
|
|
48,925 |
|
|
|
|
||
Stockholders’ equity: |
|
|
|
||
Common stock; |
|
2 |
|
|
2 |
Additional paid-in capital |
|
467,808 |
|
|
462,899 |
Accumulated deficit |
|
(163,787) |
|
|
(126,844) |
Accumulated other comprehensive loss |
|
(4,398) |
|
|
(3,727) |
Total stockholders’ equity |
|
299,625 |
|
|
332,330 |
Total liabilities and stockholders’ equity |
$ |
339,640 |
|
$ |
381,255 |
|
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
(In thousands) (Unaudited) |
|||||
|
Six Months Ended
|
||||
|
|
2024 |
|
|
2023 |
Cash flows from operating activities: |
|
|
|
||
Net loss |
$ |
(36,943) |
|
$ |
(19,278) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||
Stock-based compensation expense |
|
4,640 |
|
|
4,311 |
Loss from equity method investments |
|
10,350 |
|
|
5,417 |
Loss (gain) on sale of equity method investments |
|
13,886 |
|
|
(7,250) |
Gain on equity securities |
|
(1,594) |
|
|
— |
Deferred taxes |
|
(6,246) |
|
|
1,142 |
Depreciation and amortization |
|
156 |
|
|
106 |
Noncash lease expense |
|
532 |
|
|
96 |
Loss on sale of assets |
|
656 |
|
|
— |
Unrealized foreign currency translation (gains) losses |
|
(36) |
|
|
13 |
Changes in assets and liabilities: |
|
|
|
||
Accounts receivable |
|
(12,725) |
|
|
— |
Other assets |
|
1,950 |
|
|
(2,019) |
Operating lease liabilities |
|
(472) |
|
|
(80) |
Accounts payable |
|
(25) |
|
|
(1,072) |
Payables to affiliates |
|
(93) |
|
|
— |
Deferred revenue |
|
24,347 |
|
|
— |
Accrued expenses and other liabilities |
|
(27,164) |
|
|
(1,072) |
Net cash used in operating activities |
|
(28,781) |
|
|
(19,686) |
Cash flows from investing activities: |
|
|
|
||
Capital expenditures |
|
(8,622) |
|
|
(28,696) |
Advances to affiliates |
|
(8,226) |
|
|
(4,742) |
Proceeds from sale of marketable securities |
|
45 |
|
|
— |
Proceeds from sale of shares in equity method investments |
|
49,103 |
|
|
— |
Additions to equity method investments |
|
(14,966) |
|
|
(28,218) |
Net cash provided by (used in) investing activities |
|
17,334 |
|
|
(61,656) |
Cash flows from financing activities: |
|
|
|
||
Proceeds from issuances of common stock, net of issuance costs |
|
— |
|
|
71,084 |
Payments of long-term debt and insurance premiums financed |
|
(651) |
|
|
(239) |
Payments to tax authorities for employee stock-based compensation |
|
(654) |
|
|
— |
Net cash (used in) provided by financing activities |
|
(1,305) |
|
|
70,845 |
Net decrease in cash |
|
(12,752) |
|
|
(10,497) |
Cash and cash equivalents at beginning of period |
|
71,730 |
|
|
99,247 |
Cash and cash equivalents at end of period |
$ |
58,978 |
|
$ |
88,750 |
Non-GAAP Financial Measures
The following information provides definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. The non-GAAP financial measures presented do not have any standard meaning prescribed by GAAP and may differ from similarly-titled measures used by other companies. We believe that these adjusted measures provide meaningful information to assist management, investors, and analysts in understanding our financial condition and the results of operations. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and provide a better baseline for analyzing trends in our underlying businesses.
The following are non-GAAP financial measures for
Adjusted net loss is defined as net loss, as calculated under GAAP, plus or minus the gain or loss from sale of equity method investments, gain or loss on sale of assets, gain or loss from equity securities, gain or loss from foreign currency exchange, severance and severance related costs, and certain other adjustments we believe are not reflective of our ongoing operations and performance. These items include asset impairment, acquisition costs and other fees, and shelf registration costs.
Adjusted diluted earnings per share (or adjusted diluted EPS) is defined as diluted EPS, as calculated under GAAP, before gain or loss on sale of equity method investments, gain or loss on sale of assets, gain or loss from equity securities, gain or loss from foreign currency exchange, severance and severance related costs, and certain other costs we believe are not reflective of our ongoing operations and performance.
EBITDA is defined as net income (loss) before interest expenses, income tax expense, and depreciation.
Adjusted EBITDA is defined as EBITDA plus or minus the gain or loss on sale of equity method investments, gain or loss on sale of assets, gain or loss from equity securities, gain or loss from foreign currency exchange, severance and severance related costs, and certain other adjustments we believe are not reflective of our ongoing operations and performance.
Below are reconciliations of non-GAAP financial measures on a consolidated basis for adjusted net loss, adjusted diluted EPS, EBITDA, and adjusted EBITDA.
Adjusted Net Loss and Adjusted Diluted EPS
|
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(in thousands, except per share amounts) |
|
|
|
Diluted EPS |
|
|
|
Diluted EPS |
|
|
|
Diluted EPS |
||||||
Net loss |
|
$ |
(13,332) |
|
$ |
(0.69) |
|
$ |
(23,611) |
|
$ |
(1.22) |
|
$ |
(10,639) |
|
$ |
(0.55) |
Loss (gain) on sale of equity method investments(1) |
|
|
— |
|
|
— |
|
|
13,886 |
|
|
0.72 |
|
|
(3,975) |
|
|
(0.20) |
Loss on sale of assets |
|
|
656 |
|
|
0.03 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Gain on equity securities(2) |
|
|
(210) |
|
|
(0.01) |
|
|
(1,384) |
|
|
(0.07) |
|
|
— |
|
|
— |
(Gain) loss from foreign currency exchange(3) |
|
|
(158) |
|
|
(0.01) |
|
|
131 |
|
|
0.01 |
|
|
17 |
|
|
— |
Severance and reorganization related costs(4) |
|
|
314 |
|
|
0.02 |
|
|
1,780 |
|
|
0.09 |
|
|
— |
|
|
— |
Other costs(5) |
|
|
81 |
|
|
— |
|
|
431 |
|
|
0.02 |
|
|
224 |
|
|
0.01 |
Tax effect of adjustments(6) |
|
|
(2) |
|
|
— |
|
|
(3,093) |
|
|
(0.16) |
|
|
55 |
|
|
— |
Adjusted net loss |
|
$ |
(12,651) |
|
$ |
(0.65) |
|
$ |
(11,860) |
|
$ |
(0.61) |
|
$ |
(14,318) |
|
$ |
(0.75) |
______________________________________________________ | |
(1) |
Loss on sale of equity method investments in the three months ended |
(2) |
Gain on equity securities represents the realized and unrealized gain on our equity security holdings in |
(3) |
Loss from foreign currency exchange relates to currency fluctuations in our foreign bank accounts denominated in Canadian dollars and Australian dollars and marketable securities denominated in Australian dollars. |
(4) |
Severance and reorganization related costs related to our 2024 cost savings plan. |
(5) |
Other costs include legal and transactional costs associated with the |
(6) |
No income tax impacts have been given to any items that were recorded in jurisdictions with full valuation allowances. |
EBITDA and Adjusted EBITDA
|
Three Months Ended |
|||||||
(in thousands) |
|
|
|
|
|
|||
Net loss |
$ |
(13,332) |
|
$ |
(23,611) |
|
$ |
(10,639) |
Interest income, net |
|
(577) |
|
|
(605) |
|
|
(1,154) |
Income tax (benefit) expense |
|
(2) |
|
|
(3,093) |
|
|
649 |
Depreciation and amortization |
|
75 |
|
|
81 |
|
|
61 |
EBITDA |
|
(13,836) |
|
|
(27,228) |
|
|
(11,083) |
Loss (gain) on sale of equity method investments(1) |
|
— |
|
|
13,886 |
|
|
(3,975) |
Loss on sale of assets |
|
656 |
|
|
— |
|
|
— |
Gain on equity securities(2) |
|
(210) |
|
|
(1,384) |
|
|
— |
(Gain) loss from foreign currency exchange(3) |
|
(158) |
|
|
131 |
|
|
17 |
Severance and reorganization related costs(4) |
|
314 |
|
|
1,780 |
|
|
— |
Other costs(5) |
|
81 |
|
|
431 |
|
|
224 |
Adjusted EBITDA |
$ |
(13,153) |
|
$ |
(12,384) |
|
$ |
(14,817) |
______________________________________________________ | |
(1) |
Loss on sale of equity method investments in the three months ended |
(2) |
Gain on equity securities represents the realized and unrealized gain on our equity security holdings in |
(3) |
(Gain) loss from foreign currency exchange relates to currency fluctuations in our foreign bank accounts denominated in Canadian dollars and Australian dollars and marketable securities denominated in Australian dollars. |
(4) |
Severance and reorganization related costs related to our 2024 cost savings plan. |
(5) |
Other costs include legal and transactional costs associated with the |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808334981/en/
SVP,
+1 704 575 2549
esanders@piedmontlithium.com
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