Piedmont Lithium (PLL) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly production and shipments at NAL, with mill utilization at 91% and lithium recovery at 67%, despite a challenging market and lower lithium prices.

• Realized industry-leading price per ton ($878, SC6 equivalent $976) and improved profitability per ton through hedging, shipment consolidation, and cost controls.

• Implemented a cost savings plan, reducing workforce by 48% and achieving $14 million in annualized savings, exceeding the initial $10 million target.

• Consolidated U.S. lithium hydroxide production plans into Carolina Lithium, deferring Tennessee Lithium, and monetized non-core assets, raising $49.1 million.

• Advanced key projects: Ewoyaa in Ghana received environmental and mine operating permits (pending parliamentary ratification), and Carolina Lithium progressed in permitting and financing discussions.

Financial highlights

• Q3 2024 revenue was $27.7 million, up from $13.2 million in Q2 but down from $47.1 million year-over-year due to lower lithium prices.

• Shipped 31,500 dry metric tons in Q3, more than double the previous quarter, with realized price per ton at $878 and cost per ton at $794.

• Gross profit was $2.7 million (9.6% margin), down from $23.8 million (50.4%) in Q3 2023.

• Q3 GAAP net loss was $16.7 million ($0.86/share); adjusted net loss was $8.1 million ($0.42/share); adjusted EBITDA was ($8.7) million.

• Ended Q3 with $64.4 million in cash and $36.6 million in working capital; $25 million credit facility established, $18 million drawn.

Outlook and guidance

• Full-year 2024 shipment guidance is 102,000–116,000 dry metric tons, with Q4 outlook at 41,000–55,000 dmt; some Q4 shipments deferred to Q1 2025.

• 2024 CapEx expected at $11–$12 million, down from $57 million in 2023; Q4 CapEx expected to be less than $1 million.

• Investments in and advances to affiliates for 2024 forecasted at $27–$29 million.

• Deferred shipments expected to be accretive to 2025 results; shipment schedule optimized for customer needs and transport costs.

• Construction of Carolina Lithium contingent on finalizing project financing, including ATVM loan and strategic partnerships.