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 to 49,700 dmt, record lithium recovery of 68%, and mill utilization at 83%.

• Shipped approximately 14,000 dmt of spodumene concentrate in Q2 2024, with shipments ramping up in H2 and full-year guidance maintained at 126,000 dmt.

• Consolidated U.S. lithium hydroxide strategy by shifting Tennessee Lithium capacity to Carolina Lithium, following receipt of the North Carolina mining permit and targeting 60,000 metric tons/year.

• Cost reduction initiatives included a 28% workforce reduction and $10 million annual run-rate savings, with disciplined capital deployment and focus on minimizing shareholder dilution.

• Progressed permitting and funding for Carolina Lithium and Ewoyaa, with timelines and development contingent on market recovery and funding availability.

Financial highlights

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

• Q2 2024 GAAP net loss was $13.3 million ($0.69/share), adjusted net loss $12.7 million ($0.65/share), and adjusted EBITDA was negative $13.2 million.

• Cash and cash equivalents stood at $59 million as of June 30, 2024, down from $71.7 million at year-end 2023.

• CapEx was $3 million in Q2 2024, with annual cost savings plan targeting $10 million.

• Working capital improved to $47.7 million during H1 2024.

Outlook and guidance

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

• H2 2024 CapEx guidance is $3–$5 million, mainly for Carolina Lithium, with joint venture funding and affiliate investments expected to decrease.

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