NAL Achieves Record Quarterly Production,
Carolina Lithium Mining Permit Received
- Record quarterly production at NAL with recoveries exceeding
target; full run-rate production on track for H2’24
- Piedmont plans full-year customer shipments of approximately
126,000 dry metric tons (“dmt”), weighted to H2’24
- Carolina Lithium mining permit issued in May 2024, accelerating
funding discussions
- Revenue of $13.4 million on sales of approximately 15,500 dmt
of spodumene concentrate
- $71.4 million in cash as of March 31, 2024; working capital
nearly doubled from 2023 year end
- 2024 outlook for shipments to more than double and investments
to decrease more than 50% in H2’24 vs. H1’24
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 producing spodumene
operation in North America, achieved record quarterly production of
40,439 dry metric tons (“dmt”) of spodumene concentrate in Q1’24.
NAL lithium recoveries of 69% in March 2024 exceeded plan and set a
new monthly record. Overall safety performance improved as NAL
recorded its lowest quarterly incident rate since the restart of
operations in March 2023. Construction of the crushed ore storage
dome at NAL was materially completed during Q1’24 with
commissioning advancing in Q2’24. This capital project, along with
other improvements, is expected to result in increased NAL
production and a reduction in NAL’s unit operating costs. NAL
management estimates operations will achieve full run-rate
production in H2’24. NAL is jointly owned by Piedmont (25%) and
Sayona Mining Limited ("Sayona Mining") (75%).
In North Carolina, Piedmont achieved a significant milestone in
May 2024 with the receipt of the mining permit for Carolina
Lithium, a strategic project situated in the U.S. Battery Belt. The
mining permit is a catalyst for accelerating discussions with
potential funding parties, including government loan agencies and
strategic partners who could provide capital, offtake, and
technical support. The Company expects, based on its published
technical studies, Carolina Lithium to be a low-cost producer of
spodumene concentrate and lithium hydroxide and a key contributor
to U.S. energy security. The project should benefit from
exceptional infrastructure, minimal transport distances, low energy
costs, a deep local talent pool, and proximity to cathode and
battery customers as well as by-product markets. The competitive
corporate tax regime offered in the U.S., the absence of
significant royalties, and the benefits inherent in the Inflation
Reduction Act of 2022 should also provide advantages to the
project.
“We are very pleased with developments during the first quarter,
including the milestones attained in Quebec and North Carolina. NAL
achieved records in both safety performance and production in
Q1’24, and the outlook is promising with the commissioning of the
crushed ore dome currently underway. 2024 will be a year of two
halves, with Piedmont shipments expected to more than double from
H1’24 to H2’24 as we begin to emphasize shipments to core customers
under long-term agreements, and Piedmont capital expenditures and
investment in affiliates to fall by over 50% in H2’24 vs H1’24,”
said Keith Phillips, President and Chief Executive Officer of
Piedmont. “Carolina Lithium is one of only two significant
spodumene projects in the United States, and receipt of our mining
permit is a critical step in its development. We will now focus our
efforts on aggressively pursuing strategic partnering and other
funding conversations for our foundational asset. We also fortified
our balance sheet by monetizing certain non-core investments during
the quarter, and we are well-positioned to advance our projects
with a continued focus on minimizing dilution to Piedmont
shareholders.”
First Quarter 2024 Financial Highlights
All references to dry metric tons (“dmt”) in this release relate
to spodumene concentrate.
Units
Q1’24
Q4’23
Q1’23
Sales
Concentrate shipped
dmt thousands
15.5
14.2
—
Revenue
$ millions
13.4
(7.3
)
—
Realized price(1)
$/dmt
865
(513
)
—
Li2O content(2)
%
5.5
5.7
—
Realized cost of sales(3)
$/dmt
799
756
—
Profitability
Gross profit
$ millions
0.7
(18.1
)
—
Gross profit margin
%
5.2
NM
—
Net loss
$ millions
(23.6
)
(25.4
)
(8.6
)
Diluted EPS
$
(1.22
)
(1.32
)
(0.47
)
Adjusted net loss(4)
$ millions
(11.9
)
(23.7
)
(10.2
)
Adjusted diluted EPS(4)
$
(0.61
)
(1.23
)
(0.55
)
Adjusted EBITDA(4)
$ millions
(12.4
)
(24.4
)
(12.0
)
Adjusted EBITDA margin(4)
%
NM
NM
NM
Cash
Cash and cash equivalents(5)
$ millions
71.4
71.7
129.2
__________________________________
(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 Li2O 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, adjustments 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.
NM - Not meaningful
First Quarter and Recent Business Highlights
Piedmont Lithium
- Shipped approximately 15,500 dmt (~5.5% Li2O) of spodumene
concentrate from NAL to customers in Q1’24.
- In Q1’24, we sold our entire holdings in Sayona Mining and a
portion of our holdings in Atlantic Lithium Limited ("Atlantic
Lithium") for net proceeds of $49.1 million. The sale of our shares
in Sayona Mining resulted in net proceeds of $41.4 million, a
taxable gain of $22 million based on net proceeds less acquisition
costs, and a reportable loss of $17.2 million driven by historical
non-cash gains on dilution in Sayona Mining. The sale of our shares
in Atlantic Lithium resulted in net proceeds of $7.7 million, a
taxable gain of $1.1 million, and a reportable gain of $3.1
million. The sale of these shares had no impact on our joint
ventures or offtake arrangements with either Sayona Quebec or
Atlantic Lithium.
- In February 2024, we initiated a cost-savings plan designed to
reduce operating expenses by $10 million annually and defer 2024
capital spending to 2025. As part of this plan, we reduced our
workforce by 28% and recorded $1.8 million in severance and
severance-related costs, which includes $0.6 million of non-cash
charges associated with accelerated stock compensation expense, in
the first quarter of 2024. We expect to recognize the majority of
our cost savings in 2024.
- In March 2024, Ms. Dawne Hickton, an accomplished leader in the
aerospace, energy, and metals industries, was appointed to
Piedmont’s Board of Directors, further diversifying the Board’s
executive, operational, and strategic guidance to the Company.
- In Q1’24, the U.S. District Court for the Eastern District of
New York granted Piedmont’s motion to dismiss a securities class
action lawsuit, originally filed in July 2021, against Piedmont and
two of its executives, which also resulted in the related
derivative actions being dismissed.
North American Lithium (Quebec, Canada)
- In Q1’24, NAL achieved record quarterly production of
approximately 40,400 dmt and shipped approximately 58,000 dmt, of
which approximately 15,500 dmt were sold to Piedmont. Quarterly
production increased by 18% compared to the prior quarter. Safety
performance also improved as NAL achieved its lowest quarterly
recordable incident rate since restarting operations in March
2023.
- In March 2024, operations at NAL achieved a record production
month with 15,699 dmt of spodumene concentrate produced and three
daily production records set between 710 dmt and 750 dmt. Lithium
recoveries reached a record 69%, exceeding the ramp-up target of
67%.
- In April 2024, following a detailed operational review, the
joint venture partners of NAL agreed to complete several ongoing
capital project initiatives and continue operations with the goal
of completing ramp-up activities to achieve steady-state production
in 2024.
- In Q1’24, progress continued on two important capital
improvement projects – a new crushed ore storage dome and a crushed
ore re-feed system. These projects are expected to result in
production increases and unit cost improvements. Commissioning is
expected to conclude for both projects in May 2024.
- Concentrate produced and shipped by NAL and concentrate shipped
by Piedmont:
Share
Units
Q1’24
Q4’23
Q3’23
Piedmont Lithium
Concentrate shipped
100%
dmt thousands
15.5
14.2
29.0
North American Lithium
Concentrate produced
100%(1)
dmt thousands
40.4
34.2
31.5
Concentrate shipped
100%(2)
dmt thousands
58.0
23.9
48.2
__________________________________
(1)
Concentrate produced represents 100% of
NAL’s production.
(2)
Concentrate shipped represents 100% of
NAL’s shipments, inclusive of shipments to Piedmont.
Note: The table above reports quarterly
and year-to-date information in accordance with Piedmont’s fiscal
year reporting, which is on a calendar-year basis. Concentrate
produced and concentrate shipped (above) are reported in the
periods in which activities actually occurred. For financial
statement purposes, Piedmont reports income (loss) from its 25%
ownership in Sayona Quebec, which includes NAL, on a one-quarter
lag.
Carolina Lithium (North Carolina)
- In May 2024, Piedmont received the finalized mining permit for
the construction, operation, and reclamation of Carolina Lithium
following the posting of a $1 million reclamation bond to the state
of North Carolina. The North Carolina Department of Environmental
Quality’s Division of Energy, Mineral, and Land Resources approved
the mining permit application on April 12, 2024.
- Receipt of the state mining permit allows the Company to
accelerate discussions with funding parties, including government
loan agencies and strategic partners who could provide capital,
offtake, and technical support. The Company’s goal is to put in
place a strong funding plan that will maximize value for Piedmont
shareholders.
- Piedmont continues to engage with community stakeholders,
including the Gaston County Board of Commissioners.
Ewoyaa Project (Ghana)
- In January 2024, the Minerals Income Investment Fund, Ghana’s
sovereign wealth fund, commenced its investment in Atlantic Lithium
through its purchase of Atlantic Lithium’s common stock totaling $5
million.
- In February 2024, Mr. Patrick Brindle, Piedmont’s Executive
Vice President and Chief Operating Officer, stepped down as a
member of Atlantic Lithium’s board of directors due to our
reduction in ownership of Atlantic Lithium.
Tennessee Lithium (Tennessee)
- Tennessee Lithium remains a key part of our development
pipeline as a permitted project. Piedmont is evaluating the
timeline of project development given the recent receipt of the
state mining permit for Carolina Lithium.
- In April 2024, the Company exited the purchase agreement for a
nearby industrial complex and continues to negotiate a renewal of
our option agreement for the planned project site.
2024 Outlook
Units
H1’24
H2’24
Full Year 2024
Shipments
dmt thousands
37 — 39
84 — 88
126
Capital expenditures
$ millions
7 — 9
3 — 5
10 — 14
Investments in and advances to
affiliates
$ millions
25 — 26
7 — 12
32— 38
NAL is forecasted to achieve full run-rate production in H2’24.
Under our offtake agreement with Sayona Quebec, Piedmont has the
right to purchase the greater of 50% of production or 113,000
dmt/year. Based on the production projection and per the Company’s
offtake agreement, Piedmont expects to ship approximately 126,000
dmt of spodumene concentrate in 2024, with quarterly variations due
to shipping logistics and customer requirements. A shipment of
approximately 13,200 dmt of spodumene concentrate held over from
2023, combined with our planned 113,000 dmt annual offtake from
NAL, provides the basis for full-year shipment outlook. We are
prioritizing contract customer shipments, weighted to H2’24, which
we expect will provide more stable price realizations and reduce
reliance on volatile spot market sales.
The majority of forecasted capital expenditures relate to
Carolina Lithium and Tennessee Lithium. Investments in and advances
to affiliates reflect cash contributions to Sayona Quebec and
advances to Atlantic Lithium for the Ewoyaa project. Our outlook
for forecasted capital expenditures and investments in and advances
to affiliates is subject to market conditions.
Piedmont is in the process of retaining a financial advisor to
assist in developing funding options for Ewoyaa that would minimize
dilution to Piedmont shareholders.
Safety and Sustainability
In Q1’24, Piedmont continued to focus on building a culture of
safety and awareness among employees. The Company began 2024 with a
heightened focus on ramping up training requirements as part of the
long-term objective to establish a robust safety and health
management system. Increased identification and reporting of
hazards improved along with strategies for addressing unsafe
conditions.
Additionally, Piedmont prioritized its social commitments to key
stakeholders, continuing engagement with community members about
project development plans for our planned Carolina Lithium project.
A town hall, one-on-one meetings with neighbors, tours of the field
office, civic sponsorships, and a range of other community
activities were conducted to inform community members and ensure
their needs, values, and perspectives are taken into consideration
as we advance the project.
Piedmont is targeting Q2’24 for the release of its annual
Sustainability Report.
Q1 2024 Earnings Call
Date:
Thursday, May 9, 2024
Time:
8:30 a.m. Eastern Standard Time
Dial-in (Toll Free):
1 (800) 715-9871
Dial-in (Toll):
1 (646) 307-1963
Conference ID:
6860456
Participant URL:
https://events.q4inc.com/attendee/744784814
Piedmont’s earnings presentation and supporting material are
available at: https://piedmontlithium.com/investors-overview/.
About Piedmont
Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a
world-class, multi-asset, integrated lithium business focused on
enabling the transition to a net zero world and the creation of a
clean energy economy in North America. Our goal is to become one of
the largest lithium hydroxide producers in North America by
processing spodumene concentrate produced from assets where we hold
an economic interest. Our projects include our Carolina Lithium and
Tennessee Lithium projects in the United States and partnerships in
Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic
Lithium (AIM: ALL; ASX: A11). We believe these geographically
diversified operations will enable us to play a pivotal role in
supporting America’s move toward energy independence and the
electrification of transportation and energy storage.
Cautionary Note to
U.S. Investors
Piedmont’ public disclosures are governed by the U.S. Exchange
Act of 1934, as amended, including Regulation S-K 1300 thereunder,
whereas NAL discloses estimates of “easured,”“ndicated,”and
“nferred”mineral resources as such terms are used in the JORC Code
and Canada’ National Instrument 43-101. Although S-K 1300, the JORC
Code, and NI 43-101 have similar goals in terms of conveying an
appropriate level of confidence in the disclosures being reported,
they at times embody different approaches or definitions.
Consequently, investors are cautioned that public disclosures by
NAL prepared in accordance with the JORC Code or NI 43-101 may not
be comparable to similar information made public by companies,
including Piedmont, subject to S-K 1300 and the other reporting and
disclosure requirements under the U.S. federal securities laws and
the rules and regulations thereunder.
The statements in the link below were prepared by, and made by,
NAL. The following disclosures are not statements of Piedmont and
have not been independently verified by Piedmont. NAL is not
subject to U.S. reporting requirements or obligations, and
investors are cautioned not to put undue reliance on these
statements. NAL’ original announcements can be found here:
https://www.asx.com.au/markets/company/sya.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of or as described in securities legislation in the
United States and Australia, including statements regarding
exploration, development, construction, and production activities
of Sayona Mining, Atlantic Lithium, and Piedmont; current plans for
Piedmont’s mineral and chemical processing projects; Piedmont’s
potential acquisition of an ownership interest in Ewoyaa; and
strategy. Such forward-looking statements involve substantial and
known and unknown risks, uncertainties, and other risk factors,
many of which are beyond our control, and which may cause actual
timing of events, results, performance, or achievements and other
factors to be materially different from the future timing of
events, results, performance, or achievements expressed or implied
by the forward-looking statements. Such risk factors include, among
others: (i) that Piedmont, Sayona Mining, or Atlantic Lithium may
be unable to commercially extract mineral deposits, (ii) that
Piedmont’s, Sayona Mining’s, or Atlantic Lithium’s properties may
not contain expected reserves, (iii) risks and hazards inherent in
the mining business (including risks inherent in exploring,
developing, constructing, and operating mining projects,
environmental hazards, industrial accidents, weather, or
geologically related conditions), (iv) uncertainty about Piedmont’s
ability to obtain required capital to execute its business plan,
(v) Piedmont’s ability to hire and retain required personnel, (vi)
changes in the market prices of lithium and lithium products, (vii)
changes in technology or the development of substitute products,
(viii) the uncertainties inherent in exploratory, developmental,
and production activities, including risks relating to permitting,
zoning, and regulatory delays related to our projects as well as
the projects of our partners in Quebec and Ghana, (ix)
uncertainties inherent in the estimation of lithium resources, (x)
risks related to competition, (xi) risks related to the
information, data, and projections related to Sayona Mining or
Atlantic Lithium, (xii) occurrences and outcomes of claims,
litigation, and regulatory actions, investigations, and
proceedings, (xiii) risks regarding our ability to achieve
profitability, enter into and deliver product under supply
agreements on favorable terms, our ability to obtain sufficient
financing to develop and construct our projects, our ability to
comply with governmental regulations, and our ability to obtain
necessary permits, and (xiv) other uncertainties and risk factors
set out in filings made from time to time with the U.S. Securities
and Exchange Commission (“SEC”) and the Australian Securities
Exchange, including Piedmont’s most recent filings with the SEC.
The forward-looking statements, projections, and estimates are
given only as of the date of this press release and actual events,
results, performance, and achievements could vary significantly
from the forward-looking statements, projections, and estimates
presented in this press release. Readers are cautioned not to put
undue reliance on forward-looking statements. Piedmont disclaims
any intent or obligation to update publicly such forward-looking
statements, projections, and estimates, whether as a result of new
information, future events or otherwise. Additionally, Piedmont,
except as required by applicable law, undertakes no obligation to
comment on analyses, expectations or statements made by third
parties in respect of Piedmont, its financial or operating results
or its securities.
PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts) (Unaudited)
Three Months Ended
March 31,
2024
2023
Revenue
$
13,401
$
—
Costs of sales
12,710
—
Gross profit
691
—
Exploration costs
53
757
Selling, general and administrative
expenses
9,874
8,621
Total operating expenses
9,927
9,378
Loss from equity method investments
(5,440
)
(2,742
)
Loss from operations
(14,676
)
(12,120
)
Interest income
827
763
Interest expense
(222
)
(15
)
Gain on equity securities
1,384
—
Loss from foreign currency exchange
(131
)
(49
)
(Loss) gain on sale of equity method
investments
(13,886
)
3,275
Total other (loss) income
(12,028
)
3,974
Loss before income taxes
(26,704
)
(8,146
)
Income tax (benefit) expense
(3,093
)
493
Net loss
$
(23,611
)
$
(8,639
)
Basic and diluted:
Loss per share
$
(1.22
)
$
(0.47
)
Weighted-average shares outstanding
19,326
18,524
PIEDMONT LITHIUM INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts) (Unaudited)
March 31, 2024
December 31,
2023
Assets
Cash and cash equivalents
$
71,444
$
71,730
Accounts receivable
4,247
595
Other current assets
10,359
3,829
Total current assets
86,050
76,154
Property, plant and mine development,
net
129,785
127,086
Advances to affiliates
33,870
28,189
Other non-current assets
2,029
2,164
Equity method investments
83,469
147,662
Total assets
335,203
381,255
Liabilities and Stockholders’
Equity
Accounts payable and accrued expenses
7,700
11,580
Payables to affiliates
1,761
174
Current portion of long-term debt
155
149
Other current liabilities
9,194
29,463
Total current liabilities
18,810
41,366
Long-term debt, net of current portion
204
14
Operating lease liabilities, net of
current portion
1,007
1,091
Other non-current liabilities
4,115
431
Deferred tax liabilities
—
6,023
Total liabilities
24,136
48,925
Stockholders’ equity:
Common stock; $0.0001 par value, 100,000
shares authorized; 19,365 and 19,272 shares issued and outstanding
at March 31, 2024 and December 31, 2023, respectively
2
2
Additional paid-in capital
465,160
462,899
Accumulated deficit
(150,455
)
(126,844
)
Accumulated other comprehensive loss
(3,640
)
(3,727
)
Total stockholders’ equity
311,067
332,330
Total liabilities and stockholders’
equity
$
335,203
$
381,255
PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands) (Unaudited)
Three Months Ended
March 31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(23,611
)
$
(8,639
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Stock-based compensation expense
2,067
1,125
Loss from equity method investments
5,440
2,742
Loss (gain) on sale of equity method
investments
13,886
(3,275
)
Gain on equity securities
(1,384
)
—
Deferred taxes
(6,246
)
493
Depreciation and amortization
81
45
Noncash lease expense
401
35
Unrealized foreign currency translation
losses
128
8
Changes in assets and liabilities:
Accounts receivable
(3,652
)
—
Other assets
887
1,298
Operating lease liabilities
(396
)
(29
)
Accounts payable
54
(661
)
Payables to affiliates
1,587
—
Accrued expenses and other liabilities
(17,564
)
(2,654
)
Net cash used in operating activities
(28,322
)
(9,512
)
Cash flows from investing
activities:
Capital expenditures
(5,428
)
(18,519
)
Advances to affiliates
(4,977
)
(868
)
Proceeds from sale of marketable
securities
45
—
Proceeds from sale of shares in equity
method investments
49,103
—
Additions to equity method investments
(10,048
)
(12,091
)
Net cash provided by (used in) investing
activities
28,695
(31,478
)
Cash flows from financing
activities:
Proceeds from issuances of common stock,
net of issuance costs
—
71,084
Principal payments on long-term debt
(68
)
(118
)
Payments to tax authorities for employee
stock-based compensation
(591
)
—
Net cash (used in) provided by financing
activities
(659
)
70,966
Net (decrease) increase in cash
(286
)
29,976
Cash and cash equivalents at beginning of
period
71,730
99,247
Cash and cash equivalents at end of
period
$
71,444
$
129,223
Non-GAAP Financial Measures
The following information provides definitions and
reconciliations of certain non-GAAP financial measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP. The non-GAAP financial measures presented do
not have any standard meaning prescribed by GAAP and may differ
from similarly-titled measures used by other companies. We believe
that these adjusted measures provide meaningful information to
assist management, investors, and analysts in understanding our
financial condition and the results of operations. We believe these
adjusted financial measures are important indicators of our
recurring operations because they exclude items that may not be
indicative of, or are unrelated to, our core operating results, and
provide a better baseline for analyzing trends in our underlying
businesses.
The following are non-GAAP financial measures for Piedmont:
Adjusted net loss is defined as net loss, as calculated
under GAAP, plus or minus the gain or loss from sale of equity
method investments, gain or loss from equity securities, gain or
loss from foreign currency exchange, severance and severance
related costs, and certain other adjustments we believe are not
reflective of our ongoing operations and performance. These items
include asset impairment, acquisition costs and other fees, and
shelf registration costs.
Adjusted diluted earnings per share (or adjusted diluted
EPS) is defined as diluted EPS, as calculated under GAAP,
before gain or loss on sale of equity method investments, gain or
loss from equity securities, gain or loss from foreign currency
exchange, severance and severance related costs, and certain other
costs we believe are not reflective of our ongoing operations and
performance.
EBITDA is defined as net income (loss) before interest
expenses, income tax expense, and depreciation.
Adjusted EBITDA is defined as EBITDA plus or minus the
gain or loss on sale of equity method investments, gain or loss
from equity securities, gain or loss from foreign currency
exchange, severance and severance related costs, and certain other
adjustments we believe are not reflective of our ongoing operations
and performance.
Adjusted EBITDA margin is adjusted EBITDA as a percentage
of revenue.
Below are reconciliations of non-GAAP financial measures on a
consolidated basis for adjusted net loss, adjusted diluted EPS,
EBITDA, and adjusted EBITDA.
Adjusted Net Loss and Adjusted Diluted EPS
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
(in thousands, except per share
amounts)
Diluted EPS
Diluted EPS
Diluted EPS
Net loss
$
(23,611
)
$
(1.22
)
$
(25,390
)
$
(1.32
)
$
(8,639
)
$
(0.47
)
Loss (gain) on sale of equity method
investments(1)
13,886
0.72
(1,767
)
(0.09
)
(3,275
)
(0.17
)
Impairment of equity method
investment(2)
—
—
2,242
0.12
—
—
Gain on equity securities(3)
(1,384
)
(0.07
)
—
—
—
—
Loss from foreign currency exchange(4)
131
0.01
3
—
49
—
Severance and severance related
costs(5)
1,780
0.09
—
—
—
—
Other costs(6)
431
0.02
1,359
0.07
65
—
Tax effect of adjustments(7)
(3,093
)
(0.16
)
(109
)
(0.01
)
1,600
0.09
Adjusted net loss
$
(11,860
)
$
(0.61
)
$
(23,662
)
$
(1.23
)
$
(10,200
)
$
(0.55
)
__________________________________
(1)
Loss (gain) on sale of equity method
investments in the three months ended March 31, 2024 represents the
loss on sale of equity investments related to the sale of our
entire holdings of Sayona Mining and partial sale of our holdings
of Atlantic Lithium. Loss (gain) on sale of equity method
investments in the three months ended December 31, 2023 and March
31, 2023, represents a noncash gain on dilution recognized
primarily due to Piedmont electing not to participate in Sayona
Mining’s share issuances. These shares were issued at a greater
value than the carrying value of our ownership interest and as a
result our interest in Sayona Mining was diluted and reduced.
(2)
Impairment of equity method investment
represents the difference between carrying value and fair value of
Sayona Mining as of December 31, 2023.
(3)
Gain on equity securities represents the
realized and unrealized gain on our equity securities.
(4)
Loss from foreign currency exchange
relates to currency fluctuations in our foreign bank accounts
denominated in Canadian dollars and Australian dollars and
marketable securities denominated in Australian dollars.
(5)
Severance and severance related costs
relate to our 2024 cost-savings plan.
(6)
Other costs include legal and
transactional costs associated with the Department of Energy loan
and grant initiatives, shelf registration costs, and costs related
to certain significant strategic transactions.
(7)
No income tax impacts have been given to
any items that were recorded in jurisdictions with full valuation
allowances.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
Three Months Ended
(in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Net loss
$
(23,611
)
$
(25,390
)
$
(8,639
)
Interest income, net
(605
)
(895
)
(748
)
Income tax (benefit) expense
(3,093
)
(64
)
493
Depreciation and amortization
81
67
45
EBITDA
(27,228
)
(26,282
)
(8,849
)
Loss (gain) on sale of equity method
investments(1)
13,886
(1,767
)
(3,275
)
Gain on marketable securities(2)
(1,384
)
—
—
Impairment of equity method
investment(3)
—
2,242
—
Loss from foreign currency exchange(4)
131
3
49
Severance and severance related
costs(5)
1,780
—
—
Other costs(6)
431
1,359
65
Adjusted EBITDA
$
(12,384
)
$
(24,445
)
$
(12,010
)
Adjusted EBITDA margin(7)
NM
NM
NM
__________________________________
(1)
Loss (gain) on sale of equity
method investments in the three months ended March 31, 2024
represents the loss on sale of equity investments related to the
sale of our entire holdings of Sayona Mining and partial sale of
our holdings of Atlantic Lithium. Loss (gain) on sale of equity
method investments in the three months ended December 31, 2023 and
March 31, 2023 represents a noncash gain on dilution recognized
primarily due to Piedmont electing not to participate in Sayona
Mining’s share issuances. These shares were issued at a greater
value than the carrying value of our ownership interest and as a
result our interest in Sayona Mining was diluted and reduced.
(2)
Gain on equity securities
represents the realized and unrealized gain on our equity
securities.
(3)
Impairment of equity method
investment represents the difference between carrying value and
fair value of Sayona Mining as of December 31, 2023.
(4)
Loss from foreign currency
exchange relates to currency fluctuations in our foreign bank
accounts denominated in Canadian dollars and Australian dollars and
marketable securities denominated in Australian dollars.
(5)
Severance and severance related
costs relate to our 2024 cost-savings plan.
(6)
Other costs include severance
costs, legal and transactional costs associated with the Department
of Energy loan and grant initiatives, shelf registration costs, and
costs related to certain significant strategic transactions.
(7)
Adjusted EBITDA margin is defined
as adjusted EBITDA divided by revenue.
NM - Not meaningful
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509771167/en/
Erin Sanders SVP, Corporate Communications & Investor
Relations +1 704 575 2549 esanders@piedmontlithium.com
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