Piedmont Lithium (PLL) Q2 2024 earnings summary

Executive summary

• Achieved steady-state production at North American Lithium (NAL) in June 2024, with Q2 production up 23% quarter-over-quarter and record lithium recovery and mill utilization rates; shipments ramping up in H2 2024, prioritizing long-term contracts.

• Consolidated U.S. lithium hydroxide strategy by shifting Tennessee Lithium capacity into a phased, larger Carolina Lithium project, leveraging recent permitting progress and aiming for 60,000 metric tons/year production.

• Achieved $10 million annual run rate cost reduction, including a 28% workforce reduction and significant CapEx and JV investment cuts for H2 2024.

• Maintained shipment guidance for 2024 at 126,000 dmt, with the majority of shipments backloaded to H2; strategic perseverance emphasized to weather lithium pricing downcycle.

• Cost discipline and asset monetization prioritized, including sale of non-core assets and Sayona Mining stake, raising $49.1M.

Financial highlights

• Q2 2024 revenue was $13.2 million from shipments of 14,000 dmt at a realized price of $945/ton and realized cost of $900/ton; gross profit was $0.6 million with a 4.7% margin.

• Q2 GAAP net loss was $13.3 million ($0.69/share); adjusted net loss was $12.7 million ($0.65/share); adjusted EBITDA was $(13.2) million.

• Cash and cash equivalents stood at $59 million as of June 30, 2024, down from $71 million at the start of the quarter.

• CapEx reduced to $3 million in Q2, with further reductions expected in H2 2024; operating cash flow was neutral.

• Gross margin for Q2'24 was 4.7%, compared to 5.2% in Q1'24.

Outlook and guidance

• Full-year 2024 shipment guidance maintained at 126,000 dmt, with 96,000–96,500 dmt targeted for H2.

• CapEx guidance for H2 2024 is $3–$5 million, mainly for Carolina Lithium; overall capital expenditures and affiliate investments to decrease significantly.

• Project development timelines for Carolina and Ewoyaa are contingent on improved lithium market conditions, permitting, and funding availability.

• Management expects cash on hand to be sufficient for the next 12 months, assuming continued cost controls.