Piedmont Lithium Reports Q4 & Full Year 2024 Results

Piedmont Lithium Achieves Record Shipments in Q4'24 and Full Year 2024

   -- Piedmont had record Q4'24 shipments of approximately 55,700 dmt of 
      spodumene concentrate at an average realized price of $818 per dmt and 
      revenue of $45.6 million 
 
   -- Piedmont had record full year 2024 shipments of approximately 116,700 dmt 
      of spodumene concentrate at an average realized price of $856 per dmt and 
      revenue of $99.9 million 
 
   -- NAL continued to operate at a high level with 50,922 dmt produced, 90% 
      mill utilization, and 68% lithium recovery in Q4'24 
 
   -- Piedmont exceeded its target and achieved $14 million in annual cost 
      savings as part of 2024 Cost Savings Plan 
 
   -- Piedmont had $87.8 million in cash and cash equivalents as of 
      December 31, 2024 
 
   -- Piedmont entered into a definitive merger agreement with joint venture 
      partner Sayona Mining with an expected closing in mid-2025 
BELMONT, N.C.--(BUSINESS WIRE)--February 20, 2025-- 

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 fourth quarter and full year 2024 financial results.

Piedmont shipped approximately 55,700 dry metric tons ("dmt") of spodumene concentrate (5.4% Li(2) O) associated with spot shipments and recognized $45.6 million in revenue in Q4'24. The Company's realized price per dmt was $818 in Q4'24, which outperformed industry peers during the quarter. Piedmont expects to ship approximately 113,000 to 130,000 dmt of spodumene concentrate in 2025(1) . Our shipments in 2025 are expected to be long-term customer shipments or spot shipments structured to minimize downside risk. Production at North American Lithium ("NAL") supports the Company's 2025 shipment guidance.

NAL produced 50,922 dmt of spodumene concentrate during the quarter with recoveries improving to 68%. Mill utilization remained high at 90%. Unit operating costs continued to decline, and NAL remains on track to meet production and unit operating cost guidance for Sayona Mining Limited's ("Sayona Mining") fiscal year ending in June 30, 2025(2) .

Our joint venture Ewoyaa Lithium Project ("Ewoyaa") received a Mine Operating Permit from the Minerals Commission of Ghana, an important regulatory approval required ahead of commencing construction of the project. This marks a significant milestone advancing the project towards becoming Ghana's first lithium-producing mine. Development of the project remains subject to the outcome of the mining lease ratification, ongoing design work, additional regulatory approvals, prevailing market conditions, and project financing.

The final regulations for the Inflation Reduction Act's 45X manufacturing credit issued in October included production costs related to extraction, a key development which may materially improve the after-tax economics of the Carolina Lithium Project. The Company is actively pursuing additional permits and evaluating the timeline to seek rezoning approvals.

"We ended 2024 with a strong quarter operationally and commercially driven by strong production at NAL and record shipments, improved gross profit, and lower operating cost structure at Piedmont," said Keith Phillips, President and CEO of Piedmont Lithium. "Lithium markets remain challenging, but we are well-positioned to benefit from an eventual price recovery. We are particularly excited about our upcoming merger with Sayona Mining as the merged entity will be the leading lithium producer in North America with a strong portfolio of growth projects and a balance sheet bolstered by the equity financings announced as part of the merger transaction," added Phillips.

 
(1)    The timing of shipments is subject to shipping logistics, port and 
       weather conditions, and customer requirements. 
 
(2)    See Sayona Mining Quarterly Activities Report filed with the ASX on 
       January 30, 2025. 
 

Proposed Merger of Piedmont Lithium and Sayona Mining

Piedmont Lithium and Sayona Mining signed a definitive merger agreement on November 18, 2024 to combine the two companies (the "Merger") to create a leading North American lithium business. Concurrent with the Merger announcement, Piedmont successfully completed a capital raise and received gross proceeds of $26 million. Upon closing, the combined company expects to raise an additional A$69 million through a conditional placement to Resource Capital Fund VIII L.P., which will position the combined company to accelerate growth within its enlarged portfolio.

Completion of the Merger is expected to close mid-2025 subject to stockholder approval for both companies. A proxy statement containing important information about the Merger will be sent to Piedmont stockholders and filed with the U.S. Securities and Exchange Commission.

Fourth Quarter and Full Year 2024 Financial Highlights

All references to dmt in this release relate to spodumene concentrate.

 
                          Units      Q4'24   Q4'23    FY24     FY23 
Sales 
---------------------  -----------   ------  ------  ------  ------ 
      Concentrate          dmt 
       shipped           thousands    55.7    14.3   116.7    43.3 
                       ------------  -----   -----   -----   ----- 
      Revenue           $ millions    45.6    (7.3)   99.9    39.8 
                       ------------  -----   -----   -----   ----- 
      Realized 
       price(1)           $/dmt        818    (513)    856     920 
                       ------------  -----   -----   -----   ----- 
      Li(2) O 
       content(2)           %          5.4     5.7     5.4     5.5 
                       ------------  -----   -----   -----   ----- 
      Realized cost 
       of sales(3)        $/dmt        696     756     763     789 
 
Profitability 
---------------------  -----------   ------  ------  ------  ------ 
      Gross profit      $ millions     6.8   (18.1)   10.8     5.7 
                       ------------  -----   -----   -----   ----- 
      Gross profit 
       margin               %         15.0      NM    10.8    14.3 
                       ------------  -----   -----   -----   ----- 
      Net loss          $ millions   (11.1)  (25.4)  (64.8)  (21.8) 
                       ------------  -----   -----   -----   ----- 
      Diluted EPS           $        (0.55)  (1.32)  (3.30)  (1.14) 
                       ------------  -----   -----   -----   ----- 
      Adjusted net 
       loss(4)          $ millions    (3.6)  (23.7)  (36.2)  (31.3) 
                       ------------  -----   -----   -----   ----- 
      Adjusted 
       diluted 
       EPS(4)               $        (0.17)  (1.23)  (1.85)  (1.64) 
                       ------------  -----   -----   -----   ----- 
      Adjusted 
       EBITDA(4)        $ millions    (3.7)  (24.4)  (37.9)  (35.1) 
 
Cash 
---------------------  -----------   ------  ------  ------  ------ 
      Cash and cash 
       equivalents(5)   $ millions    87.8    71.7    87.8    71.7 
 
 
________________________________________ 
(1)    Realized price is the average estimated price, net of certain 
       distribution and other fees, which includes reference pricing data up 
       to the respective period end and is subject to final adjustment. The 
       final adjusted price may be higher or lower than the estimated average 
       realized price based on future price movements. 
(2)    Weighted average Li(2) O content for shipments made during the 
       respective period. 
(3)    Realized cost of sales is the average cost of sales including 
       Piedmont's offtake pricing agreement with Sayona Quebec Inc. ("Sayona 
       Quebec") for the purchase of spodumene concentrate at a market price 
       subject to a floor of $500 per dmt and a ceiling of $900 per dmt, 
       adjusted for product grade, freight, and insurance. 
(4)    See non-GAAP Financial Measures at the end of this release for a 
       reconciliation of non-GAAP measures. 
(5)    Cash and cash equivalents are reported as of the end of the period. 
 

Fourth Quarter and Recent Business Highlights

Piedmont Lithium

   -- Shipped approximately 55,700 dmt (5.4% Li2O) of spodumene concentrate 
      from NAL to customers in Q4'24 and recognized $45.6 million in revenue 
      with an average realized sales price of $818 per dmt. On an SC6 
      equivalent basis, our realized price per metric ton was $909. 
   -- In Q4'24, we completed our 2024 Cost Savings Plan and achieved $14 
      million in annual cost savings, which exceeded our target of $10 million. 
      To achieve these savings, we reduced our workforce by 62% and lowered 
      third-party spending consisting primarily of professional fees and other 
      operating costs. We recorded $6 million in severance and restructuring 
      related costs in 2024 associated with our Cost Savings Plan. Included in 
      severance and restructuring costs were cash charges of $4 million 
      primarily related to employee severance and benefits costs, the majority 
      of which was paid in 2024. We also achieved significant reductions in 
      capital expenditures and investments in and advances to affiliates in 
      2024 as part of our cost savings efforts. We are carrying our cost and 
      investment discipline into 2025 as we manage through the current lithium 
      market downcycle. 
   -- In November 2024, Piedmont and Sayona Mining agreed to combine in an 
      all-stock merger with an ownership split of approximately 50% / 50% on a 
      fully diluted basis immediately post-merger, with Sayona Mining becoming 
      the ultimate parent company. Following the announcement, Piedmont 
      successfully completed a capital raise and received gross proceeds of $26 
      million. 

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