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Piedmont Lithium reports production boost and cost savings plan

EditorEmilio Ghigini
Published 02/06/2024, 07:27 AM
Updated 02/06/2024, 07:27 AM
© Reuters.

BELMONT, N.C. - Piedmont Lithium (NASDAQ:PLL; ASX:PLL), a key player in the U.S. electric vehicle (EV) supply chain, has announced a record production quarter for its joint venture operation, North American Lithium (NAL), in Quebec. In Q4 2023, NAL produced 34,237 dry metric tons of spodumene concentrate, marking a 9% increase from the previous quarter. The company also revealed a cost savings initiative aimed at reducing annual expenses by approximately $10M.

NAL's production achievements include a record 13,954 metric tons of concentrate in December, with operational metrics such as mill availability reaching 80% and global lithium recovery at 66%. Despite shipping delays due to weather and port congestion, Piedmont anticipates reduced reliance on the volatile spot market as it begins deliveries under long-term contracts in 2024.

Piedmont's President and CEO, Keith Phillips, expressed confidence in the strategic value of NAL and the company's efforts to optimize production and costs. He anticipates further operational improvements throughout 2024, positioning NAL to capitalize on the expected recovery in lithium prices.

The company also highlighted progress at the Ewoyaa Lithium Project in Ghana, developed in partnership with Atlantic Lithium (AIM:ALL; ASX:A11). With minimal projected spending in 2024, Piedmont is exploring non-dilutive financing options for its share of the project's capital post-2025. Construction is slated to begin in 2025 following anticipated permit approvals later in 2024.

In the United States, Piedmont is strategically pacing the development of its Carolina Lithium and Tennessee Lithium projects, aligning with current market conditions. The company ended 2023 with a strong cash position and holds marketable securities valued at approximately $38M.

Piedmont's legal update includes the dismissal of a securities class action lawsuit against the company and two executives by the U.S. District Court for the Eastern District of New York on January 18, 2024.

This news is based on a press release statement and reflects the company's ongoing efforts to strengthen its position within the lithium market, amidst the industry's cyclical nature and recent price declines.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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