Piedmont Lithium Q2 2024 Financial Results

Piedmont Lithium Inc. (ASX: $PLL) reported its second quarter 2024 financial results, achieving steady-state production at North American Lithium (NAL) and increasing shipments. The company's revenue in Q2'24 was $13.2 million, with sales of approximately 14,000 dry metric tons (dmt) of spodumene concentrate. The achieved steady-state production at NAL in June 2024 supports the company's shipping guidance for H2'24.

Executive Commentary on Q2 2024 Results

Keith Phillips, President and CEO of Piedmont Lithium, stated, '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.' Phillips also highlighted the company's strategic shift in the U.S. lithium hydroxide development strategy, aiming to consolidate the planned Tennessee Lithium conversion capacity to Carolina Lithium.

Summary of Q2 2024 Financial Results and Outlook

Piedmont Lithium reported steady-state production at NAL and a significant increase in shipments in Q2'24. The company plans to shift its U.S. lithium hydroxide production strategy to Carolina Lithium, aiming to leverage capital and technical resources more efficiently. Additionally, the company is actively engaging with potential strategic partners for project-level funding for Carolina Lithium. Looking ahead, Piedmont expects to ship approximately 96,500 dmt of spodumene concentrate in H2'24, with potential quarterly variations due to shipping constraints and customer requirements. The company also aims to complete the funding process for the Ewoyaa Lithium Project in Ghana in advance of its construction, subject to government and regulatory approvals and prevailing market conditions. Keith Phillips emphasized the company's focus on maintaining long-term shareholder value amidst prevailing market realities and the growth across the electrification sector, positioning Piedmont well for the future demand for lithium in the U.S. and globally.