Piedmont Lithium (US:PLL)2024-11-12 21:24Production and Sales - Piedmont Lithium aims to produce 60,000 metric tons of lithium hydroxide annually, significantly exceeding the current U.S. annual production capacity of approximately 20,000 metric tons[124]. - In Q3 2024, Piedmont sold approximately 31,500 dmt of spodumene concentrate, generating $27.7 million in revenue at a realized sales price of $878 per dmt[128]. - NAL achieved record production of approximately 52,100 dmt of spodumene concentrate in Q3 2024, with shipments of approximately 49,000 dmt[132]. - Sayona Quebec's NAL increased production utilization to 91% in Q3 2024, a 10% improvement from Q1 2024[133]. - Piedmont holds a life-of-mine offtake agreement with Sayona Quebec for the greater of 113,000 dmt or 50% of spodumene concentrate production annually, with prices ranging from $500 to $900 per dmt[132]. - Sales volume of spodumene concentrate increased by approximately 2,500 dmt, or 8.6%, to approximately 31,500 dmt in Q3 2024 compared to approximately 29,000 dmt in Q3 2023[159]. - Sales volume of spodumene concentrate for the nine months ended September 30, 2024 increased by approximately 32,000 dmt, or 110.3%, to approximately 61,000 dmt compared to approximately 29,000 dmt in the same period of 2023[170]. Financial Performance - Revenue decreased by $19.5 million, or 41.3%, to $27.7 million in Q3 2024 compared to $47.1 million in Q3 2023[158]. - Realized prices for spodumene concentrate declined by $746 per dmt, or 45.9%, to $878 per dmt in Q3 2024 compared to $1,624 per dmt in Q3 2023[160]. - Gross profit decreased by $21.1 million, or 88.8%, to $2.7 million in Q3 2024, with gross profit margin declining to 9.6% from 50.4% in Q3 2023[161]. - Revenue for the nine months ended September 30, 2024 increased by $7.2 million, or 15.2%, to $54.3 million compared to $47.1 million in the same period of 2023[170]. - Revenue for the nine months ended September 30, 2024, decreased due to a steep decline in lithium prices, with realized prices dropping by $734 per dmt, or 45.2%, compared to the same period in 2023[172]. - Gross profit fell by $19.8 million, or 83.3%, to $4.0 million, with gross profit margin declining to 7.3% from 50.4% year-over-year, primarily due to lower lithium prices[173]. Cost Management and Savings - The company expects to achieve $14 million in annual cost savings in 2024 through workforce reductions and lower third-party spending[130]. - The company expects to achieve an additional $4 million in annual savings from its 2024 Cost Savings Plan, totaling $14 million in savings[184]. - Selling, general and administrative expenses decreased by $5.2 million, or 16.4%, to $26.6 million, attributed to cost savings from a 28% workforce reduction[176]. - Total operating expenses decreased by $6.8 million, or 20.3%, to $26.7 million in the nine months ended September 30, 2024 compared to $33.5 million in the same period of 2023[169]. Investments and Capital Expenditures - Piedmont has invested $2.8 million in Vinland Lithium, which owns the Killick Lithium exploration property in Newfoundland, Canada[147]. - Planned capital expenditures for 2024 are projected to be between $11 million and $12 million, with a significant decrease compared to the previous year[188]. - The company is evaluating funding options for project capital that would be non-dilutive to shareholders, including an ATVM loan and strategic partnerships[192]. Cash Flow and Working Capital - Cash and cash equivalents decreased by $7.4 million, or 10.3%, to $64.4 million, while working capital improved by $1.8 million, or 5.3%, to $36.6 million[186]. - Operating activities used $36.5 million in cash for the nine months ended September 30, 2024, compared to a cash inflow of $5.4 million in the same period of 2023, resulting in an increase in cash used by $41.9 million[198]. - Investing activities provided $13.3 million in cash for the nine months ended September 30, 2024, compared to a cash outflow of $80.5 million in the same period of 2023, resulting in an increase of $93.8 million in cash provided[199]. - Financing activities provided $15.8 million in cash for the nine months ended September 30, 2024, down from $70.3 million in the same period of 2023, reflecting a decrease of $54.5 million[200]. - The company experienced a $21.8 million increase in working capital outflows primarily due to settlement payments related to spodumene concentrate sales amid declining lithium prices[198]. Losses and Impairments - Loss from equity method investments increased by $7.4 million, or 191.2%, to $3.5 million in Q3 2024 compared to income of $3.9 million in Q3 2023[165]. - Restructuring and impairment charges amounted to $4.6 million in Q3 2024, with no such charges in Q3 2023[167]. - Other loss increased by approximately $10.7 million, or 119.7%, to a loss of $1.8 million in Q3 2024 compared to other income of $9.0 million in Q3 2023[168]. - Loss from equity method investments increased by $12.3 million, or 785.9%, to $13.9 million, driven by declines in income from Sayona Quebec and Sayona Mining[177]. - Other loss increased by $31.5 million, or 174.8%, to a loss of $13.5 million, primarily due to a loss on the sale of equity method investments[179]. Future Outlook - The Ewoyaa project in Ghana received a Mine Operating Permit in October 2024, marking a significant milestone for project construction[138]. - The company noted that its long-term success depends on its ability to raise additional capital and obtain necessary permits and approvals for project development[194]. - There are currently no plans for future cash distributions from any of the company's equity method investments[195]. - The company has historically been successful in raising cash through equity financing, but additional share issuances may dilute existing shareholders[196]. - The increase in cash provided by investing activities was partially offset by cash advances of $3.5 million to Atlantic Lithium and Vinland Lithium for project advances[199].