Piedmont Lithium (US:PLL)2024-11-12 11:23Financial Performance - Piedmont Lithium reported record shipments of approximately 31,500 dmt of spodumene concentrate in Q3'24, generating revenue of $27.7 million with a realized price of $878 per dmt[2]. - Piedmont's gross profit margin for Q3'24 was 9.6%, with a gross profit of $2.7 million, compared to a gross profit margin of 50.4% and $23.8 million in Q3'23[6]. - Piedmont recorded a net loss of $16.7 million in Q3'24, with an adjusted net loss of $8.1 million[6]. - Revenue for the three months ended September 30, 2023, was $27.663 million, compared to $47.127 million for the same period in 2022[20]. - Gross profit for the three months ended September 30, 2023, was $2.653 million, down from $23.764 million year-over-year[20]. - Net loss for the three months ended September 30, 2023, was $16.687 million, compared to a net income of $22.891 million in the same period last year[20]. - Basic earnings per share for the three months ended September 30, 2023, was $(0.86), compared to $1.19 for the same period in 2022[20]. - Net loss for the nine months ended September 30, 2024, was $53,630,000 compared to a net income of $3,613,000 for the same period in 2023[22]. - Adjusted net loss income for the three months ended September 30, 2024, was $(8,133,000), translating to an adjusted diluted EPS of $(0.42)[24]. - Net loss for the three months ended September 30, 2024, was $16,687,000 compared to a net income of $22,891,000 for the same period in 2023, representing a significant decline[26]. Production and Shipments - North American Lithium (NAL) achieved a quarterly production record of approximately 52,100 dmt in Q3'24, up 5% from Q2'24, with mill utilization reaching 91%[8]. - The company expects to ship between 41,000 to 55,000 dmt of spodumene concentrate in Q4'24, aiming for total shipments of approximately 102,000 to 116,000 dmt in 2024[2]. - Shipments for Q4'24 are expected to be between 41,000 to 55,000 dmt, with a total forecast of 102,000 to 116,000 dmt for the full year 2024[14]. Cost Management and Savings - The company expects to achieve $14 million in annual cost savings in 2024 following a 48% reduction in workforce since February 2024[7]. - Capital expenditures for Q4'24 are projected to be less than $1 million, with full-year guidance of $11 to $12 million[14]. - The company incurred restructuring and impairment charges of $4,563,000 related to the 2024 Cost Savings Plan and impairment of fixed assets associated with Tennessee Lithium[26]. Cash and Assets - The company has $64.4 million in cash and cash equivalents as of September 30, 2024, and entered into a non-dilutive $25 million working capital facility[1]. - Cash and cash equivalents decreased from $71,730,000 at the beginning of the period to $64,358,000 at the end of the period, a decrease of approximately 7.7%[22]. - Total current assets decreased from $76,154,000 as of December 31, 2023, to $73,654,000 as of September 30, 2024, a decline of approximately 3.3%[21]. - Total liabilities decreased from $48,925,000 as of December 31, 2023, to $43,021,000 as of September 30, 2024, a reduction of approximately 12.1%[21]. - Total stockholders' equity decreased from $332,330,000 as of December 31, 2023, to $286,206,000 as of September 30, 2024, a decline of approximately 13.9%[21]. Regulatory and Project Developments - The Ewoyaa Lithium Project in Ghana received both an environmental permit and a Mine Operating Permit, marking significant regulatory progress[3]. - Carolina Lithium is positioned to benefit from the U.S. Department of the Treasury's 45X final rule guidance, which could enhance the project's after-tax economics[12]. - Piedmont plans to shift its proposed Tennessee Lithium conversion capacity to Carolina Lithium, aiming to increase U.S. lithium hydroxide production efficiency[13]. Investments and Affiliates - Investments in and advances to affiliates are expected to be $27 to $29 million for the full year 2024, with $25 million year-to-date[14]. - Advances to affiliates increased from $28,189,000 as of December 31, 2023, to $39,208,000 as of September 30, 2024, an increase of approximately 39.0%[21]. - The company reported a loss from equity method investments of $13,864,000 for the nine months ended September 30, 2024, compared to a loss of $1,565,000 for the same period in 2023[22]. Other Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $(8,706,000), a decrease from $(13,153,000) in the previous quarter and an increase from $16,180,000 in the same quarter last year[26]. - Loss on sale of assets amounted to $35,000 for the three months ended September 30, 2024, compared to a loss of $656,000 in the previous quarter[26]. - The company recognized a noncash gain on dilution from equity method investments primarily due to Piedmont's decision not to participate in Sayona Mining's share issuances[26]. - Other costs, including legal and transactional costs, totaled $1,592,000 for the three months ended September 30, 2024[26]. - The company experienced foreign currency exchange losses of $(266,000) related to fluctuations in Canadian and Australian dollars[26].