Piedmont Lithium Q2 Report: Tennessee Project Shifts To Gaston

2:51 AM EST |September 6, 2024|Wise News Network|Business, News Articles

By: Wise News Network Staff

Gaston County, NC (WNN) – Piedmont Lithium Inc. released its second quarter (Q2) 2024 results in a press release on August 8, 2024. In the release, Piedmont discussed its production areas and production amounts. According to the release, Piedmont Lithium has four operations in place but will now focus on three areas.

North American Lithium – (NAL) Quebec, Canada – 25% ownership
Ewoyaa Lithium Project (Ewoyaa) in Ghana – 50% mining rights
Carolina Lithium (Gaston County, NC) combined with Tennessee

Highlights of the press release below:

NAL, North America’s largest operating spodumene mine, continued to achieve quarterly production records as the operation reached steady-state production in June 2024. NAL produced approximately 49,700 DMT (dry metric tonnes) of spodumene concentrate in Q2-24, up 23% from Q1-24. Lithium recovery and mill utilization achieved new quarterly highs of 68% and 83%, respectively. The crushed ore dome was commissioned in Q2-24, and steady-state production is expected to continue during Q2-24. NAL is jointly owned by Piedmont (25%) and Sayona Mining Limited (Sayona Mining) (75%).

The press release stated that the Tennessee production facility capital and resources would be moved to Carolina Lithium (Gaston County). “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 U.S. lithium hydroxide development strategy by moving our planned Tennessee Lithium conversion capacity to Carolina Lithium. The receipt of the mining permit in Q2 has made Carolina Lithium the focus of our U.S. development and allowed us to actively engage with potential strategic partners interested in a project-level investment. These conversations, as well as those related to the Ewoyaa offtake-partnering process, have been positive, and we look forward to their continuation. However, we are progressing our development of Carolina Lithium on a conservative timeline, monitoring dynamic market conditions, and focusing on strategic partnerships and our funding strategy,” stated Keith Phillips, President and CEO of Piedmont Lithium.

Per the press release, the Ewoyaa Lithium Project (Ewoyaa) in Ghana, Piedmont has mandated a financial advisor to help secure the Company’s share of construction capital. We are considering several funding alternatives with a preference toward securing funding via an offtake-partnering process using a portion of our life-of-mine rights to 50% of Ewoyaa’s spodumene concentrate production. We are working to complete this process in advance of the start of Ewoyaa’s construction, which remains subject to receipt of government and regulatory approvals as well as the prevailing market conditions at the time those approvals are achieved.

Following the receipt of the Carolina Lithium state mining permit in Q2-24 and in response to changing market conditions, Piedmont has consolidated the U.S. project development strategy to deploy capital and technical resources more efficiently and leverage the Company’s foundational North Carolina project. As part of the strategy, they plan to shift the proposed Tennessee Lithium conversion capacity to Carolina Lithium to include two lithium hydroxide trains constructed in a phased approach. The timing of the phased development will depend on several factors, including prevailing market conditions. The bulk of previously completed front-end engineering work for the Tennessee Lithium facility will be transferred to Carolina Lithium. The Company currently has an air permit application under review with North Carolina’s Division of Air Quality that will allow for up to 60,000 tons per year of lithium hydroxide production.

Piedmont Lithium had $59.0 million in cash as of June 30, 2024, and capital expenditures and investments will significantly decrease in the second half of 2024. Piedmont Lithium Inc. Stock (PLL) has a 52-week range of $46.66 to $7.32 with a $7.50 share price as of 10:36 AM ET 8/13/2024 per NASDAQ and the ASX: PLL stock has a 52-week range of 0.73 AUD to 0.13 AUD.