• Revenue: $27.7 million in Q3 2024, compared to $13.2 million in the previous quarter and $47.1 million in the prior year quarter.
• Realized Price per Metric Ton: $878 for the quarter; $976 on an SC6 equivalent basis.
• Net Loss: GAAP net loss of $16.7 million or $0.86 per share; adjusted net loss of $8.1 million or $0.42 per share.
• Cash Position: Ended the quarter with $64.4 million in cash, up from $59 million at the end of the second quarter.
• Shipments: Approximately 31,500 dry metric tons shipped in Q3 2024, more than twice the volume of the previous quarter.
• Production Volume: Over 52,000 dry metric tons of spodumene concentrate produced in Q3, a 5% increase quarter-over-quarter.
• Cost per Ton: Decreased 11% quarter-over-quarter, or 15% excluding inventory adjustments.
• Cost Savings: Achieved $14 million in annual cash cost savings as part of the 2024 cost savings plan.
• Capital Expenditures: $2 million in Q3 2024; expected to be $11 million to $12 million for the full year.
• Workforce Reduction: Total workforce reduction of 48% in 2024.
• Credit Facility: Entered a working capital credit facility allowing borrowing up to $25 million, with $18 million net proceeds during the quarter.

• Warning! GuruFocus has detected 2 Warning Sign with PLL.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Piedmont Lithium Inc (NASDAQ:PLL) achieved a record quarter of customer deliveries, improving profitability per ton.
• North American Lithium set new production records and reduced unit operating costs, supporting successful deliveries.
• The company improved its cash position with disciplined spending across OpEx, CapEx, and investments.
• Piedmont Lithium Inc (NASDAQ:PLL) received positive guidance from the US Treasury regarding the Inflation Reduction Act 45X tax credit, enhancing project economics.
• The company successfully leveraged the lithium futures market to achieve industry-leading realized prices.

Negative Points

• Piedmont Lithium Inc (NASDAQ:PLL) reported a GAAP net loss of $16.7 million for the third quarter.
• The company had to adjust its full-year shipment outlook due to customer requests, impacting shipment timing.
• There were $4.6 million in restructuring and impairment charges related to cost savings plans.
• The company is facing delays in the parliamentary ratification of the mining lease for the Ewoyaa project in Ghana.
• Piedmont Lithium Inc (NASDAQ:PLL) is experiencing a market downturn, affecting the timing and development of projects like Carolina Lithium.

Q & A Highlights

Q: Can you provide insight on the potential shipment that might be deferred to Q1? A: Keith Phillips, President and CEO, mentioned that the decision is leaning towards deferral to January due to significant transport cost savings of approximately $1.3 million to $1.4 million USD. The final decision will be made in the coming days.

Q: Are there M&A opportunities for Piedmont Lithium given the current market conditions? A: Keith Phillips highlighted M&A as an industry trend, noting that consolidation is likely as the lithium market grows. However, he did not indicate any immediate plans for Piedmont to engage in M&A activities.

Q: What is the outlook for the Carolina Lithium project over the next few years? A: Keith Phillips explained that the focus is on finding a strategic partner who can bring capital, offtake, and operational expertise. The timing of the project's progress is dependent on market recovery, and they aim to reach a final investment decision before the end of the decade.

Q: How do you view the capital requirements for Piedmont in 2025, especially regarding the Ewoyaa project? A: Keith Phillips stated that capital requirements are expected to be minimal due to reduced overhead and staffing costs. For Ewoyaa, they are considering joint financing with Atlantic Lithium to minimize equity spend, potentially involving debt underwritten by entities like the DFC.

Q: What are the expectations for shipments in 2025, considering potential deferrals? A: Michael White, CFO, indicated that while shipments will be lumpy, they expect a more balanced year compared to 2024. The deferral of some 2024 shipments will result in higher shipments in 2025, with Q1 expected to be particularly strong.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.