Form 10-Q General Information This section provides essential filing details for Piedmont Lithium Inc.'s Form 10-Q, including company identification and filing status [Registrant Information & Filing Details](index=1&type=section&id=Registrant%20Information%20%26%20Filing%20Details) Piedmont Lithium Inc.'s Form 10-Q filing details, covering incorporation, offices, stock listing, and filer status - Piedmont Lithium Inc. is a Delaware-incorporated company with its common stock listed on The Nasdaq Capital Market under the trading symbol **PLL**[3](index=3&type=chunk)[4](index=4&type=chunk) Filing Status and Shares Outstanding | Indicator | Status/Value | | :-------------------------------- | :----------- | | Filer Status | Large accelerated filer | | Reports Filed (preceding 12 months) | Yes | | Interactive Data File Submitted | Yes | | Shell Company | No | | Common Stock Outstanding (as of May 03, 2024) | 19,369,394 shares | Glossary of Terms and Definitions This section defines key terms and abbreviations used in the report for clarity and consistent understanding [Terms and Abbreviations](index=3&type=section&id=Terms%20and%20Abbreviations) This section defines key terms and abbreviations for consistent understanding of the company's operations, projects, and financial reporting - The glossary defines operational terms, regulatory bodies, and financial reporting standards for comprehensive understanding[7](index=7&type=chunk) PART I - Financial Information This section presents Piedmont Lithium Inc.'s unaudited consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Piedmont Lithium Inc.'s unaudited consolidated financial statements for Q1 2024 and 2023, including key statements and detailed accounting notes [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Piedmont Lithium reported its first revenue and gross profit in Q1 2024, but increased operating expenses and investment losses led to a substantial net loss Consolidated Statements of Operations (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Revenue | $13,401 | $— | $13,401 | * | | Costs of sales | $12,710 | $— | $12,710 | * | | Gross profit | $691 | $— | $691 | * | | Exploration costs | $53 | $757 | $(704) | (93.0%) | | Selling, general and administrative expenses | $9,874 | $8,621 | $1,253 | 14.5% | | Loss from equity method investments | $(5,440) | $(2,742) | $(2,698) | (98.4%) | | Loss from operations | $(14,676) | $(12,120) | $(2,556) | (21.1%) | | Total other (loss) income | $(12,028) | $3,974 | $(16,002) | (402.7%) | | Loss before taxes | $(26,704) | $(8,146) | $(18,558) | (227.8%) | | Income tax (benefit) expense | $(3,093) | $493 | $(3,586) | (727.4%) | | Net loss | $(23,611) | $(8,639) | $(14,972) | 173.3% | | Basic and diluted net loss per weighted-average share | $(1.22) | $(0.47) | $(0.75) | 159.6% | | Basic and diluted weighted-average shares outstanding | 19,326 | 18,524 | 802 | 4.3% | - The significant increase in net loss for Q1 2024 was primarily driven by a **$13.9 million** loss on the sale of equity method investments, partially offset by a gain on equity securities[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) The company reported a comprehensive loss of **$23.5 million** for Q1 2024, primarily due to net loss, partially offset by foreign currency translation adjustment Consolidated Statements of Comprehensive Loss (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net loss | $(23,611) | $(8,639) | $(14,972) | 173.3% | | Foreign currency translation adjustment of equity method investments | $87 | $(2,213) | $2,300 | (104.0%) | | Other comprehensive income (loss), net of tax | $87 | $(2,213) | $2,300 | (104.0%) | | Comprehensive loss | $(23,524) | $(10,852) | $(12,672) | 116.8% | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$335.2 million** as of March 31, 2024, driven by reduced equity method investments, while total liabilities also decreased Consolidated Balance Sheets (as of March 31, 2024 vs. December 31, 2023) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | Change ($) | Change (%) | | :-------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents | $71,444 | $71,730 | $(286) | (0.4%) | | Total current assets | $86,050 | $76,154 | $9,896 | 13.0% | | Property, plant and mine development, net | $129,785 | $127,086 | $2,699 | 2.1% | | Equity method investments | $83,469 | $147,662 | $(64,193) | (43.5%) | | Total assets | $335,203 | $381,255 | $(46,052) | (12.1%) | | Total current liabilities | $18,810 | $41,366 | $(22,556) | (54.5%) | | Total liabilities | $24,136 | $48,925 | $(24,789) | (50.7%) | | Total stockholders' equity | $311,067 | $332,330 | $(21,263) | (6.4%) | | Total liabilities and stockholders' equity | $335,203 | $381,255 | $(46,052) | (12.1%) | - The significant decrease in equity method investments is primarily due to the sale of shares in Sayona Mining and Atlantic Lithium during the quarter[20](index=20&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased in Q1 2024, with significant cash used in operations offset by cash provided from investing activities, primarily asset sales Consolidated Statements of Cash Flows (Three Months Ended March 31) | Cash Flow Activity (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net cash used in operating activities | $(28,322) | $(9,512) | $(18,810) | 197.7% | | Net cash provided by (used in) investing activities | $28,695 | $(31,478) | $60,173 | (191.2%) | | Net cash (used in) provided by financing activities | $(659) | $70,966 | $(71,625) | (100.9%) | | Net (decrease) increase in cash | $(286) | $29,976 | $(30,262) | (100.9%) | | Cash and cash equivalents at end of period | $71,444 | $129,223 | $(57,779) | (44.7%) | - Investing activities provided **$28.7 million** in cash in Q1 2024, a significant turnaround from a **$31.5 million** use in Q1 2023, primarily due to **$49.1 million** in proceeds from equity method investment sales[23](index=23&type=chunk)[154](index=154&type=chunk) - Financing activities shifted from providing **$71.0 million** in Q1 2023 (due to common stock issuance) to using **$0.7 million** in Q1 2024[23](index=23&type=chunk)[155](index=155&type=chunk) [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total stockholders' equity decreased by **$21.3 million** in Q1 2024, primarily due to net loss, partially offset by additional paid-in capital Consolidated Statements of Changes in Equity (Three Months Ended March 31, 2024) | Metric (in thousands) | December 31, 2023 | March 31, 2024 | Change ($) | | :-------------------------------- | :---------------- | :------------- | :--------- | | Common Stock | $2 | $2 | $0 | | Additional Paid-In Capital | $462,899 | $465,160 | $2,261 | | Accumulated Deficit | $(126,844) | $(150,455) | $(23,611) | | Accumulated Other Comprehensive Loss | $(3,727) | $(3,640) | $87 | | Total Stockholders' Equity | $332,330 | $311,067 | $(21,263) | - Key changes include a **$23.6 million** increase in accumulated deficit due to the net loss, and a **$2.1 million** increase in additional paid-in capital from stock-based compensation[25](index=25&type=chunk) [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the company's business, accounting policies, revenue, compensation, earnings, taxes, investments, and contingencies [Note 1. Description of Company](index=10&type=section&id=Note%201.%20Description%20of%20Company) Piedmont Lithium Inc. is a U.S.-based, development-stage, multi-asset integrated lithium business focused on North American EV and battery supply chains - Piedmont Lithium is a development-stage company aiming to supply lithium hydroxide to the North American EV and battery supply chains[26](index=26&type=chunk) - The company's project portfolio includes Carolina Lithium, Tennessee Lithium, and strategic investments in NAL (Quebec), Ewoyaa (Ghana), and Killick Lithium (Newfoundland)[27](index=27&type=chunk) - As of March 31, 2024, the company had an accumulated deficit of **$150.5 million** but believes its **$71.4 million** cash on hand is sufficient for at least one year of operations[32](index=32&type=chunk)[34](index=34&type=chunk) [Note 2. Revenue](index=12&type=section&id=Note%202.%20Revenue) The company commenced spodumene concentrate sales in H2 2023, recognizing **$13.4 million** in revenue for Q1 2024, including provisional adjustments Revenue Breakdown (Three Months Ended March 31, 2024) | (in thousands) | 2024 | | :-------------------------- | :----- | | Spodumene concentrate sales | $13,070 | | Provisional revenue adjustments | $331 | | Revenue | $13,401 | - No revenue was recorded for the three months ended March 31, 2023, as sales began in August 2023[39](index=39&type=chunk) [Note 3. Stock-Based Compensation](index=12&type=section&id=Note%203.%20Stock-Based%20Compensation) Stock-based compensation expense, net of forfeitures, increased to **$2.1 million** for Q1 2024, primarily recognized in selling, general and administrative expenses Stock-Based Compensation Expense (Three Months Ended March 31) | (in thousands) | 2024 | 2023 | | :-------------------------------- | :----- | :----- | | Stock-based compensation, net of forfeitures | $2,106 | $1,166 | | - Exploration costs | $5 | $20 | | - Selling, general and administrative expenses | $2,062 | $1,105 | | - Capitalized stock-based compensation | $39 | $41 | - As of March 31, 2024, **$11.7 million** of unvested stock-based compensation expense remains to be recognized through December 31, 2026[41](index=41&type=chunk) Share-Based Awards Activity (in thousands) | Award Type | Share Balance Jan 1, 2024 | Granted | Exercised/Vested/Surrendered | Forfeited/Expired | Share Balance Mar 31, 2024 | | :---------------- | :------------------------ | :------ | :--------------------------- | :---------------- | :------------------------- | | Stock Option Awards | 295 | 155 | — | — | 450 | | Restricted Stock Units | 80 | 200 | (35) | (2) | 243 | | Performance Rights Awards | 86 | 123 | (32) | — | 177 | [Note 4. Earnings Per Share](index=15&type=section&id=Note%204.%20Earnings%20Per%20Share) Basic and diluted net loss per share increased to **$(1.22)** for Q1 2024, as potentially dilutive shares were anti-dilutive due to the net loss Basic and Diluted Net Loss Per Share (Three Months Ended March 31) | (in thousands, except per share amounts) | 2024 | 2023 | | :--------------------------------------- | :----- | :----- | | Net loss | $(23,611) | $(8,639) | | Weighted-average number of common shares | 19,326 | 18,524 | | Basic and diluted net loss per share | $(1.22) | $(0.47) | - Potentially dilutive shares, totaling **870,000** in Q1 2024, were excluded from diluted EPS calculation as their effect would have been anti-dilutive[53](index=53&type=chunk) [Note 5. Income Taxes](index=15&type=section&id=Note%205.%20Income%20Taxes) The company recorded a **$3.1 million** income tax benefit for Q1 2024, primarily due to a non-recurring tax benefit from the sale of Sayona Mining shares Income Tax (Benefit) Expense and Effective Tax Rate (Three Months Ended March 31) | Metric | 2024 | 2023 | | :-------------------------- | :----- | :----- | | Income tax (benefit) expense | $(3,093) | $493 | | Loss before taxes | $(26,704) | $(8,146) | | Effective tax rate | 11.6% | (6.1%) | - The effective tax rate differs from the U.S. federal statutory rate due to a valuation allowance against U.S. deferred tax assets and foreign jurisdiction income/loss[55](index=55&type=chunk) - The sale of Sayona Mining shares resulted in a **$17.2 million** book loss but a **$22.0 million** taxable gain, leading to a **$3.2 million** tax payable and a deferred tax benefit reversal of **$6.0 million**[56](index=56&type=chunk) [Note 6. Equity Method Investments](index=16&type=section&id=Note%206.%20Equity%20Method%20Investments) Equity method investments decreased significantly to **$83.5 million** due to the sale of Sayona Mining and partial Atlantic Lithium holdings Equity Method Investments Carrying Amounts (in thousands) | Investment | Balance Dec 31, 2023 | Balance Mar 31, 2024 | Change ($) | | :---------------- | :------------------- | :------------------- | :--------- | | Sayona Mining | $59,494 | $— | $(59,494) | | Sayona Quebec | $76,552 | $81,792 | $5,240 | | Atlantic Lithium | $9,825 | $— | $(9,825) | | Vinland Lithium | $1,791 | $1,677 | $(114) | | Total | $147,662 | $83,469 | $(64,193) | - Piedmont sold its entire holding in Sayona Mining for **$41.4 million** net proceeds, resulting in a **$17.2 million** reportable loss but no impact on joint venture or offtake rights[59](index=59&type=chunk) - Piedmont sold a portion of its Atlantic Lithium shares for **$7.7 million** net proceeds, now accounting for its remaining **5%** interest as marketable securities with no impact on earn-in or offtake rights[60](index=60&type=chunk) - Sayona Quebec, **25%** owned by Piedmont, produced approximately **40,400 dmt** of spodumene concentrate in Q1 2024, with Piedmont purchasing **15,500 dmt** at **$865 per dmt**[64](index=64&type=chunk)[67](index=67&type=chunk) [Note 7. Advances to Affiliates](index=19&type=section&id=Note%207.%20Advances%20to%20Affiliates) Advances to affiliates increased to **$33.9 million** as of March 31, 2024, primarily driven by investments in the Ewoyaa and Killick Lithium projects Advances to Affiliates (in thousands) | Affiliate | March 31, 2024 | December 31, 2023 | | :---------------- | :------------- | :---------------- | | Ewoyaa | $31,331 | $26,378 | | Killick Lithium | $2,539 | $1,811 | | Total | $33,870 | $28,189 | - Piedmont has an earn-in agreement to acquire up to a **50%** equity interest in Atlantic Lithium Ghana (Ewoyaa project) and up to a **62.5%** equity interest in Killick Lithium[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Note 8. Other Assets and Liabilities](index=19&type=section&id=Note%208.%20Other%20Assets%20and%20Liabilities) Other current assets increased to **$10.4 million** due to reclassified marketable securities, while other current liabilities decreased to **$9.2 million** Other Current Assets (in thousands) | Asset | March 31, 2024 | December 31, 2023 | | :-------------------------- | :------------- | :---------------- | | Marketable securities | $7,627 | $— | | Prepaid and other current assets | $2,501 | $3,345 | | Equity securities | $231 | $484 | | Total other current assets | $10,359 | $3,829 | Other Current Liabilities (in thousands) | Liability | March 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------- | :---------------- | | Accrued provisional revenue adjustment | $8,871 | $29,151 | | Operating lease liabilities | $323 | $312 | | Total other current liabilities | $9,194 | $29,463 | - The **$7.6 million** in marketable securities represents common shares in Atlantic Lithium, now accounted for at fair value based on ASX closing prices[75](index=75&type=chunk) - The decrease in accrued provisional revenue adjustment reflects the resolution of estimated sales prices for spodumene concentrate[78](index=78&type=chunk) [Note 9. Equity](index=20&type=section&id=Note%209.%20Equity) The company issued **52,701** common shares in February 2024 for Killick Lithium funding, with a **$500 million** shelf registration expiring in September 2024 - In February 2024, **52,701** common shares were issued at **$14.17 per share** as an advance for Killick Lithium funding[80](index=80&type=chunk) - A shelf registration statement with **$500 million** available for securities issuance is set to expire on September 24, 2024[82](index=82&type=chunk) [Note 10. Segment Reporting](index=20&type=section&id=Note%2010.%20Segment%20Reporting) Piedmont Lithium operates as a single reportable operating segment, with management assessing performance and allocating resources at the consolidated level - The company has a single reportable operating segment, with key resource decisions and performance assessments made at the consolidated level by a common management team[83](index=83&type=chunk) [Note 11. Fair Value of Financial Instruments](index=20&type=section&id=Note%2011.%20Fair%20Value%20of%20Financial%20Instruments) The company's material financial instruments are measured at fair value using a three-level hierarchy, with most marketable securities classified as Level 1 - Investments in marketable and equity securities totaled **$7.9 million** as of March 31, 2024, with **$7.6 million** related to Atlantic Lithium shares (Level 1 inputs)[92](index=92&type=chunk) - Cash and cash equivalents, trade and other payables, and long-term debt approximate fair value due to their short-term nature or carrying value, primarily using Level 1 inputs[92](index=92&type=chunk) [Note 12. Commitments and Contingencies](index=22&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company dismissed a securities class action lawsuit in Q1 2024 but is cooperating with an SEC investigative subpoena regarding non-U.S. mining investments - The U.S. District Court granted Piedmont's motion to dismiss a securities class action lawsuit in January 2024, leading to the dismissal of related derivative actions in March 2024[89](index=89&type=chunk)[96](index=96&type=chunk) - The SEC issued an investigative subpoena in February 2024, requesting documents concerning the company's non-U.S. mining investments and operations, with Piedmont cooperating fully[97](index=97&type=chunk) - An asset retirement obligation of **$0.4 million** was recognized in 2023 for a disposal facility acquired for the Tennessee Lithium project[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Piedmont Lithium's financial condition and results for Q1 2024, highlighting strategic positioning, project developments, performance, and liquidity [Executive Overview & Strategy](index=25&type=section&id=Executive%20Overview%20%26%20Strategy) Piedmont Lithium aims to be a leading North American lithium hydroxide producer, leveraging a diversified project portfolio to meet EV and battery demand - Piedmont Lithium is positioned to become a critical contributor to the U.S. electric vehicle and battery manufacturing supply chains, benefiting from federal policies and funding[102](index=102&type=chunk)[103](index=103&type=chunk) - The company's portfolio includes Carolina Lithium, Tennessee Lithium, and strategic investments in Sayona Quebec's NAL (Canada) and Atlantic Lithium's Ewoyaa (Ghana)[104](index=104&type=chunk) - Piedmont plans to produce an estimated **60,000 metric tons per year** of domestic lithium hydroxide, supported by approximately **525,000 metric tons** of spodumene concentrate annually[105](index=105&type=chunk) [Piedmont Lithium Projects & Strategic Investments](index=26&type=section&id=Piedmont%20Lithium%20Projects%20%26%20Strategic%20Investments) Piedmont Lithium advances its global lithium projects and strategic investments, strengthening its financial position through operational improvements and asset monetization - In Q1 2024, Piedmont sold its entire stake in Sayona Mining for **$41.4 million** and a portion of Atlantic Lithium shares for **$7.8 million**, retaining offtake rights and joint venture agreements[109](index=109&type=chunk) - A cost-savings plan initiated in February 2024 targets **$10 million** in annual operating expense reductions and defers 2024 capital spending, including a **28%** workforce reduction[109](index=109&type=chunk) [Quebec (Sayona Quebec / NAL)](index=26&type=section&id=Quebec%20(Sayona%20Quebec%20/%20NAL)) Piedmont holds a **25%** equity interest in Sayona Quebec; NAL achieved record production of **40,400 dmt** in Q1 2024, with Piedmont purchasing **15,500 dmt** - NAL achieved record production of approximately **40,400 dmt** of spodumene concentrate in Q1 2024, with recoveries reaching a record **69%**[109](index=109&type=chunk)[116](index=116&type=chunk) - Piedmont sold approximately **15,500 dmt** of spodumene concentrate from NAL, recognizing **$13.4 million** in revenue with a realized sales price of **$865 per dmt**[110](index=110&type=chunk) - Capital improvement projects at NAL, including a new crushed ore storage dome, are expected to increase production and reduce unit costs, with commissioning anticipated in May 2024[116](index=116&type=chunk) [Ghana (Atlantic Lithium / Ewoyaa)](index=27&type=section&id=Ghana%20(Atlantic%20Lithium%20/%20Ewoyaa)) Piedmont maintains a **5%** equity interest in Atlantic Lithium and rights to acquire a **50%** interest in Atlantic Lithium Ghana, including the Ewoyaa project - Piedmont holds an offtake agreement for **50%** of annual spodumene concentrate production from Ewoyaa at market prices on a life-of-mine basis[111](index=111&type=chunk) - Ghana's MIIF commenced a **$5 million** investment in Atlantic Lithium, expected to reduce Piedmont's funding requirements for Ewoyaa[117](index=117&type=chunk) [Carolina Lithium](index=27&type=section&id=Carolina%20Lithium) The Carolina Lithium project received its finalized state mining permit in May 2024, enabling accelerated funding discussions and local permitting efforts - Carolina Lithium is designed to produce **30,000 metric tons per year** of lithium hydroxide from a single integrated site[112](index=112&type=chunk)[104](index=104&type=chunk) - The project received its finalized state mining permit in May 2024, following the posting of a **$1 million** reclamation bond[114](index=114&type=chunk) - Receipt of the mining permit enables accelerated discussions with funding parties, including government loan agencies and strategic partners, to finalize a strong funding plan[115](index=115&type=chunk) [Tennessee Lithium](index=29&type=section&id=Tennessee%20Lithium) Tennessee Lithium holds all material permits for construction, with the company re-evaluating its development timeline and negotiating a site option renewal - Tennessee Lithium is expected to add **30,000 metric tons per year** of lithium hydroxide production capacity to the U.S. supply chain and holds all material permits for construction[119](index=119&type=chunk)[120](index=120&type=chunk) - The company is evaluating the project's timeline given the recent Carolina Lithium permit and is negotiating for the planned project site option[125](index=125&type=chunk) [Killick Lithium](index=29&type=section&id=Killick%20Lithium) Piedmont holds approximately a **20%** equity interest in Vinland Lithium, with an earn-in agreement to acquire up to a **62.5%** interest in Killick Lithium - Piedmont has invested **$2.5 million** in Vinland Lithium, which owns the Killick Lithium exploration property[121](index=121&type=chunk) - An earn-in agreement allows Piedmont to acquire up to a **62.5%** equity interest in Killick Lithium through staged investments, potentially paid in company stock[122](index=122&type=chunk) - Piedmont holds **100%** marketing rights and a right of first refusal to purchase all lithium products from Killick Lithium on a life-of-mine basis[122](index=122&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements adhere to U.S. GAAP, with no changes in significant accounting policies reported for Q1 2024 - No changes in significant accounting policies were reported for the three months ended March 31, 2024, from those disclosed in the Annual Report for the year ended December 31, 2023[124](index=124&type=chunk) [Components of our Results of Operations](index=30&type=section&id=Components%20of%20our%20Results%20of%20Operations) This section outlines how Piedmont Lithium recognizes and categorizes its financial results, including revenue, exploration costs, SG&A, and investment losses - Revenue is recognized at the point of product transfer, with initial pricing subject to final adjustments based on market conditions and quality measurements[126](index=126&type=chunk) - Exploration costs are expensed as incurred before proven and probable mineral reserves are declared, while development costs are capitalized thereafter[127](index=127&type=chunk) - Loss from equity method investments reflects the proportionate share of net income/loss from strategic investments, adjusted on a one-quarter lag[129](index=129&type=chunk) - Other income includes interest income/expense, foreign currency exchange gains/losses, and gains/losses on the sale of equity method investments[130](index=130&type=chunk) [Results of Operations (Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023)](index=31&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20March%2031,%202024%20Compared%20to%20Three%20Months%20Ended%20March%2031,%202023)) Piedmont Lithium reported its first revenue and gross profit in Q1 2024, but a significant net loss of **$23.6 million** was driven by higher expenses and investment losses Key Financial Performance Indicators (Three Months Ended March 31) | Metric (in thousands) | 2024 | 2023 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Revenue | $13,401 | $— | $13,401 | * | | Gross profit | $691 | $— | $691 | * | | Gross profit margin | 5.2% | —% | — | — | | Exploration costs | $53 | $757 | $(704) | (93.0%) | | Selling, general and administrative expenses | $9,874 | $8,621 | $1,253 | 14.5% | | Loss from equity method investments | $(5,440) | $(2,742) | $(2,698) | (98.4%) | | Other (loss) income | $(12,028) | $3,974 | $(16,002) | (402.7%) | | Net loss | $(23,611) | $(8,639) | $(14,972) | 173.3% | - Revenue of **$13.4 million** in Q1 2024 was generated from the sale of approximately **15,500 dmt** of spodumene concentrate at a realized price of **$865 per dmt**[132](index=132&type=chunk) - Selling, general and administrative expenses increased by **14.5%** to **$9.9 million**, primarily due to **$1.8 million** in severance costs from a **28%** workforce reduction[135](index=135&type=chunk) - Other loss increased significantly to **$12.0 million** from a **$4.0 million** income, mainly due to a **$14.1 million** loss on the sale of Sayona Mining and Atlantic Lithium equity interests[139](index=139&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Piedmont Lithium's cash remained stable at **$71.4 million**; the company implemented cost savings and monetized assets to fund expenditures and investments [Overview](index=33&type=section&id=Overview) Cash and cash equivalents were **$71.4 million** as of March 31, 2024, with primary uses for concentrate payments, equity investments, and capital expenditures - Cash and cash equivalents were **$71.4 million** as of March 31, 2024, with a shelf registration statement of **$500 million** available until September 24, 2024[141](index=141&type=chunk) - Primary cash uses in Q1 2024 included **$11.1 million** for spodumene concentrate settlement payments, **$10.0 million** for Sayona Quebec, **$5.0 million** for Atlantic Lithium (Ewoyaa), and **$3.3 million** for Tennessee Lithium capital expenditures[142](index=142&type=chunk) - A cost savings plan initiated in Q1 2024 aims to reduce operating spend by **$10 million** annually, defer capital spending, and limit affiliate investments, including a **27%** workforce reduction[143](index=143&type=chunk) - The company monetized non-core assets, raising **$49.1 million** from the sale of Sayona Mining and Atlantic Lithium common stock holdings[144](index=144&type=chunk) [Liquidity Outlook](index=34&type=section&id=Liquidity%20Outlook) Piedmont Lithium expects current cash to be sufficient for 12 months, with planned 2024 capital expenditures of **$10-14 million** and affiliate investments of **$32-38 million** - Planned 2024 expenditures include **$10.0-$14.0 million** for capital expenditures (Carolina Lithium, Tennessee Lithium) and **$32-$38 million** for investments in and advances to affiliates (Sayona Quebec, Atlantic Lithium)[146](index=146&type=chunk) - Construction for Carolina Lithium and Tennessee Lithium is not planned until project financing, potentially including ATVM loans and strategic partnerships, is finalized[148](index=148&type=chunk) - Land acquisition contracts in North Carolina total **$21.2 million**, with **$5.6 million** expected to be funded in 2024, while agreements to acquire land in Tennessee were terminated[149](index=149&type=chunk) [Cash Flows](index=35&type=section&id=Cash%20Flows) Operating activities used **$28.3 million** in Q1 2024, investing activities provided **$28.7 million**, and financing activities used **$0.7 million** Condensed Cash Flow Schedule (Three Months Ended March 31) | (in thousands) | 2024 | 2023 | | :-------------------------------- | :----- | :----- | | Net cash used in operating activities | $(28,322) | $(9,512) | | Net cash provided by (used in) investing activities | $28,695 | $(31,478) | | Net cash (used in) provided by financing activities | $(659) | $70,966 | | Net (decrease) increase in cash | $(286) | $29,976 | - The **$18.8 million** increase in cash used in operating activities was mainly due to a **$17.0 million** increase in working capital spend related to spodumene concentrate sales settlement payments[153](index=153&type=chunk) - Investing activities provided **$28.7 million**, a **$60.2 million** increase, primarily from **$49.1 million** in net proceeds from the sale of Sayona Mining and Atlantic Lithium equity interests[154](index=154&type=chunk) - Financing activities used **$0.7 million**, a **$71.6 million** decrease, largely due to the absence of **$71.1 million** net cash proceeds from common stock issuances received in Q1 2023[155](index=155&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in the company's market risk factors were reported compared to its Annual Report for the year ended December 31, 2023 - No material changes in market risk factors were identified compared to the previous Annual Report[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Disclosure controls and procedures were deemed effective as of March 31, 2024[157](index=157&type=chunk) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the quarter[158](index=158&type=chunk) PART II - Other Information This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12—Commitments and Contingencies of the unaudited consolidated financial statements - Legal proceedings information is detailed in Note 12 of the financial statements[160](index=160&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes in the company's risk factors were reported compared to its Annual Report for the year ended December 31, 2023 - No material changes in risk factors were reported compared to the previous Annual Report[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds occurred[162](index=162&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[163](index=163&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable as the company does not currently operate any mines subject to the U.S. Federal Mine Safety and Health Act of 1977 - Mine safety disclosures are not applicable as the company does not operate mines subject to the U.S. Federal Mine Safety and Health Act of 1977[164](index=164&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers[165](index=165&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, certifications, and XBRL-related files - Exhibits include the Amended and Restated Certificate of Incorporation and Bylaws, Section 302 and 906 certifications, and various XBRL taxonomy documents[167](index=167&type=chunk) [Signatures](index=38&type=section&id=Signatures) The report is duly signed on behalf of Piedmont Lithium Inc. by Michael White, Executive Vice President and Chief Financial Officer, on May 9, 2024 - The report was signed by Michael White, Executive Vice President and Chief Financial Officer, on May 9, 2024[170](index=170&type=chunk)

Operational Highlights - NAL (North American Lithium) achieved record monthly concentrate production of 15,669 dmt in March 2024[14] - NAL's Q1 2024 concentrate production reached 40,439 dmt, an 18% increase quarter-over-quarter[14] - NAL's lithium recovery was 69% in March, with mill utilization at 73%[60] Financial Performance - Q1 2024 revenue was $13.4 million, including $13.1 million from one spot shipment and one long-term customer shipment[19, 21] - The realized price per metric ton in Q1 2024 was $865[19] - The realized cost per metric ton in Q1 2024 was $799[19] - Piedmont's Q1 2024 net loss was $23.611 million, or ($1.22) per diluted share[52] - Adjusted net loss for Q1 2024 was $11.860 million, or ($0.61) per diluted share[52] - Piedmont's cash and cash equivalents at the end of Q1 2024 were $71.4 million[19] Outlook - The company anticipates shipping 37,000-39,000 dmt in H1 2024 and 84,000-88,000 dmt in H2 2024, totaling 126,000 dmt for FY2024[66] - Capital expenditures are projected to be $7-$9 million in H1 2024 and $3-$5 million in H2 2024, totaling $10-$14 million for FY2024[66] - Investments in and advances to affiliates are expected to be $25-$26 million in H1 2024 and $7-$12 million in H2 2024, totaling $32-$38 million for FY2024[66]

Start Time: 08:30 January 1, 0000 9:32 AM ET Piedmont Lithium Inc. (NASDAQ:PLL) Q1 2024 Earnings Conference Call May 09, 2024, 08:30 AM ET Company Participants Keith Phillips - President and CEO Michael White - EVP and CFO Patrick Brindle - EVP and COO Erin Sanders - SVP, Corporate Communications and IR Conference Call Participants David Deckelbaum - TD Cowen Austin Yun - Macquarie Joseph Eaker - ROTH MKM Gregory Lewis - BTIG Mahima Kakani - JPMorgan Greg Jones - BMO Capital Markets Stephen Richardson - Eve ...

PRESS RELEASE | May 9, 2024 | NASDAQ: PLL PIEDMONT LITHIUM REPORTS Q1 2024 RESULTS NAL Achieves Record Quarterly Production, Carolina Lithium Mining Permit Received Belmont, North Carolina, May 9, 2024 – Piedmont Lithium Inc. ("Piedmont," the "Company," "we," "our," or "us") (Nasdaq: PLL; ASX: PLL), a leading North American supplier of lithium products critical to the U.S. electric vehicle supply chain, today reported its first quarter 2024 financial results. North American Lithium ("NAL"), the largest prod ...

Financial Data and Key Metrics Changes - For full year 2023, the company reported a GAAP diluted earnings per share loss of $1.14 and an adjusted diluted earnings per share loss of $1.64, reflecting a $0.51 improvement compared to the prior year [11] - The company ended the year with $71.7 million in cash and cash equivalents, down from $99 million at the beginning of the year [52][24] - Full year revenue was $39.8 million, with a gross profit of $5.7 million, resulting in a realized price of $920 per metric ton and a realized cost of $789 per metric ton [29] Business Line Data and Key Metrics Changes - North American Lithium (NAL) produced nearly 99,000 tons and shipped more than 72,000 tons of lithium concentrate in 2023, with 43,000 tons sold to Piedmont [34] - In Q4 2023, NAL produced over 34,000 tons of concentrate, an increase of almost 3,000 tons compared to Q3 [55] - The company shipped 43.2 thousand dry metric tons of spodumene concentrate in the second half of 2023 [10] Market Data and Key Metrics Changes - The U.S. EV market saw 1.4 million vehicles sold in 2023, a 50% increase from 2022, with North American EV sales growing by 41% year-over-year in January [46] - The energy storage segment is expected to grow almost 50% in 2024, surpassing demand from the traditional portable market [69] - The lithium market is currently experiencing a downturn, with prices having fallen 85% to 90% from record highs in 2022 [65] Company Strategy and Development Direction - The company aims to be a leading supplier of lithium resources for the North American EV supply chain, focusing on hard rock production [3][22] - The company is prioritizing a prudent funding strategy while minimizing shareholder dilution, with plans to reduce spending by $10 million annually [14][48] - The Ewoyaa project in Ghana is planned to be a large spodumene producer with a high return on invested capital, and the Carolina Lithium project is designed for 30,000 tons of lithium hydroxide production [26][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term future at NAL, citing exceptional drill results and the potential for further mine life extensions [25][18] - The company expects to achieve full production run rate at NAL within 2024, with improvements in production and unit operating costs anticipated [23][35] - Management believes that the current low price environment will eventually lead to a recovery in lithium prices, driven by strong demand growth in the EV industry [43][44] Other Important Information - The company reduced its workforce by 27% to manage costs and expects to record approximately $1 million in severance costs in Q1 2024 [14] - The company sold its holdings in Sayona Mining and a portion of its holdings in Atlantic Lithium for approximately $49 million in net proceeds [24][50] - The company is exploring non-dilutive project funding options to ensure leverage to the anticipated lithium price recovery [24][32] Q&A Session Summary Question: What is the environment for offtake and customers in the U.S.? - Management noted that customer interest remains high, with ongoing constructive conversations about pricing and potential floor pricing arrangements [90] Question: What are the final hurdles before permit completion for Carolina Lithium? - Management indicated that while the state reserves the right to ask additional questions, the current inquiries are straightforward and they expect to conclude the process soon [95] Question: How will cash cost improvements at NAL be achieved? - Management expects cash costs to improve significantly, potentially by C$400 to C$500 per ton, once strategic initiatives like the crushed ore dome are implemented [120]

performance. Net income before interest expenses, income tax expense, and depreciation. 33 nd as a result our interest in Atlantic Lithium was diluted and reduced. These gains (losses) are reported on a one-quarter lag. 22). Inpairment of of equity method investment represents the difference between the carrying ralue, which includes $46.3 million in accumulated gamon ofilintion, and fair (3) Loss from foreign currency exchange relates to FX Tuctuations in our foreign bank accounts denominated in Canadian d ...

 Erin Sanders - Senior Vice President, Corporate Communications and Investor Relations Keith Phillips - President and Chief Executive Officer Michael White - Chief Financial Officer Patrick Brindle - Chief Operating Officer David Deckelbaum - TD Cowen Joseph Reagor - ROTH MKM Matt Summerville - DA Davidson Austin Yun - Macquarie Bank Greg Lewis - BTIG Matthew Key - B. Riley Securities Eric Boyes - Evercore ISI Chris Kapsch - Loop Capital Markets Noel Parks - Tuohy Brothers Ladies and gentlemen, thank you f ...

EARNINGS PRESENTATION THIRD QUARTER 2023 LiOH Forward Looking Statements Non-GAAP Measures 2 PIEDMONT DEVELOPMENT PIPELINE 525,000tpy spodumene concentrate lithium hydroxide PIEDM $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Fastmarkets Platts SMM $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Fastmarkets Platts SMM :PLL :PLL ARBN 647 286 360 DISCLAIMERS Such fonward-koking statements in visves ubstantial and Incover and unknown risk factors, mary of which performance or achievementsexpressed o ...

| --- | --- | --- | |-------|-------|-------------------------------------------------------------------| | | | | | | | PIEDMONT LITHIUM, INC. | | | | | | | | POWER WITH TOMORROW IN MIND 2022 ANNUAL MEETING OF SHAREHOLDERS | | | | | ANNUAL MEETING OF SHAREHOLDERS January 11, 2022 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|---------|-------|-------|-------|-------|-------|-------|-------|-------|-------|-----------------------------------------------| | | ...

LITHIUM – MADE IN THE USA Powering America's Clean Energy Transition :PLL :PLL ABN 50 002 664 495 September 2020 OUR PURPOSE : PLL : PLL To provide the domestic lithium required for America's transition to a clean energy future Founded in 2016 – Headquartered in Belmont, NC, USA Listed on NASDAQ and ASX – Symbol PLL Plan to Produce Lithium Hydroxide from Spodumene Ideally Located to Address China's Market Dominance O World-Class Business in Scale and Economics S Strong Cash Position Trading at Steep Discoun ...