NAL Achieves Steady-State Production; Shipments
Shift to Contract Customers
- NAL set quarterly records in Q2’24 for production (up 23% QoQ),
lithium recovery (68%), and mill utilization (83%)
- NAL achieved steady-state production in June 2024; H2’24
production forecast supports Piedmont shipping guidance
- Piedmont revenue of $13.2 million on sales of approximately
14,000 dmt of spodumene concentrate in Q2’24
- Piedmont plans H2’24 customer shipments of approximately 96,500
dmt of spodumene concentrate
- $59.0 million in cash as of June 30, 2024; capital expenditures
and investments to significantly decrease in H2’24
- Carolina Lithium mining permit received in Q2’24 from the state
of North Carolina, renewing funding discussions
- U.S. lithium hydroxide production strategy consolidated to
leverage capital and technical resources
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 second quarter 2024 financial
results.
Piedmont shipped approximately 14,000 dry metric tons (“dmt”) of
spodumene concentrate (~5.5% Li2O) associated with long-term
customer contracts in Q2’24. Realized price per ton was $945 in
Q2’24 versus $865 in Q1’24. Included in the realized price per ton
in Q1’24, and to a lesser extent in Q2’24, were downward
provisional pricing adjustments associated with spot shipments
originating in H2’23 and January 2024. The Company expects to ship
approximately 96,500 dmt of spodumene concentrate in H2’24,
resulting in total shipments of approximately 126,000 dmt in 2024,
with potential quarterly variations due to shipping constraints and
customer requirements. The majority of our H2’24 shipments are
expected to be long-term customer shipments or spot shipments
structured to minimize downside risk. The achievement of
steady-state production at North American Lithium (“NAL”) supports
the H2’24 shipment guidance.
NAL, North America’s largest operating spodumene mine, continued
to achieve quarterly production records as the operation reached
steady-state production in June 2024. NAL produced approximately
49,700 dmt of spodumene concentrate in Q2’24, up 23% from Q1’24.
Lithium recovery and mill utilization achieved new quarterly highs
of 68% and 83%, respectively. The crushed ore dome was commissioned
in Q2’24 and steady-state production is expected to continue during
H2’24. NAL is jointly owned by Piedmont (25%) and Sayona Mining
Limited (“Sayona Mining”) (75%).
Following the receipt of our Carolina Lithium state mining
permit in Q2’24, and in response to changing market conditions, we
have consolidated our U.S. project development strategy to deploy
capital and technical resources more efficiently and leverage the
Company’s foundational North Carolina project. As part of our
strategy, we plan to shift the proposed Tennessee Lithium
conversion capacity to Carolina Lithium to include two lithium
hydroxide trains constructed in a phased approach. The timing of
the phased development will depend on several factors including
prevailing market conditions. The bulk of previously completed
front-end engineering work for the Tennessee Lithium facility will
be transferred to Carolina Lithium. The Company currently has an
air permit application under review with North Carolina’s Division
of Air Quality that will allow for up to 60,000 tons per year of
lithium hydroxide production.
For our Ewoyaa Lithium Project (“Ewoyaa”) in Ghana, Piedmont has
mandated a financial advisor to help secure the Company’s share of
construction capital. We are considering several funding
alternatives with a preference toward securing funding via an
offtake-partnering process using a portion of our life-of-mine
rights to 50% of Ewoyaa’s spodumene concentrate production. We are
working to complete this process in advance of the start of
Ewoyaa’s construction, which remains subject to receipt of
government and regulatory approvals as well as the prevailing
market conditions at the time those approvals are achieved.
“NAL continues to demonstrate its potential as an excellent
asset, achieving steady-state production, and exhibiting future
promise with new, high-grade drill results and the completion of
the crushed ore dome. In H2’24, we expect to sell the majority of
our 2024 NAL offtake, prioritizing contract customers and
structuring spot shipments to limit our downside exposure. Capital
allocations and investments in affiliates are anticipated to be
modest given the completion of the NAL ramp-up and expected timing
of Ewoyaa development,” said Keith Phillips, President and CEO of
Piedmont Lithium.
“Given the prevailing market realities, we have taken steps to
help ensure our long-term competitive position and the preservation
of the upside of our assets. These steps include the decision to
consolidate our U.S. lithium hydroxide development strategy by
moving our planned Tennessee Lithium conversion capacity to
Carolina Lithium. The receipt of the mining permit in Q2 has made
Carolina Lithium the focus of our U.S. development and allowed us
to actively engage with potential strategic partners interested in
a project-level investment. These conversations, as well as those
related to the Ewoyaa offtake-partnering process, have been
positive, and we look forward to their continuation,” said
Phillips. “However, we are progressing our development of Carolina
Lithium on a conservative timeline, monitoring dynamic market
conditions, and focusing on strategic partnerships and our funding
strategy.”
Phillips continued, “While lithium prices have remained
depressed, we are encouraged by the growth across the
electrification sector and the long-term potential of the lithium
market. The world continues to move toward electrification, which
will require exponentially more lithium than is produced today in
the U.S. and globally. Piedmont is well positioned with active
production offtake, an effective cost management plan, and a
prudent project development and funding strategy, all in alignment
with the goal of maintaining long-term shareholder value.”
Second Quarter 2024 Financial Highlights
All references to dry metric tons (“dmt”) in this release relate
to spodumene concentrate.
Units
Q2’24
Q1’24
Q2’23
Sales
Concentrate shipped
dmt thousands
14.0
15.5
—
Revenue
$ millions
13.2
13.4
—
Realized price(1)
$/dmt
945
865
—
Li2O content(2)
%
5.5
5.5
—
Realized cost of sales(3)
$/dmt
900
820
—
Profitability
Gross profit
$ millions
0.6
0.7
—
Gross profit margin
%
4.7
5.2
—
Net loss
$ millions
(13.3)
(23.6)
(10.6)
Diluted EPS
$
(0.69)
(1.22)
(0.55)
Adjusted net loss(4)
$ millions
(12.7)
(11.9)
(14.3)
Adjusted diluted EPS(4)
$
(0.65)
(0.61)
(0.75)
Adjusted EBITDA(4)
$ millions
(13.2)
(12.4)
(14.8)
Cash
Cash and cash equivalents(5)
$ millions
59.0
71.4
88.7
___________________________________________________________
(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 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.
Second Quarter and Recent Business Highlights
Piedmont Lithium
- Shipped approximately 14,000 dmt (~5.5% Li2O) of spodumene
concentrate from NAL to customers in Q2’24.
- In July 2024, Piedmont streamlined its U.S. lithium hydroxide
production plans in favor of deploying capital and technical
resources more efficiently by shifting our proposed Tennessee
Lithium conversion capacity to Carolina Lithium. We plan to
leverage the North Carolina project by adding a second lithium
hydroxide production train as part of a phased development approach
on a measured timeline subject to market conditions.
North American Lithium (Quebec, Canada)
- In Q2’24, NAL achieved record quarterly production of
approximately 49,700 dmt and shipped approximately 27,700 dmt, of
which approximately 14,000 dmt were sold to Piedmont.
- In Q2’24, production at NAL increased nearly 23% compared to
the prior quarter, recovery rates improved to 68%, and mill
utilization increased to 83%, up 10% from the previous quarter.
Commissioning of the crushed ore dome was completed, and operations
are expected to produce at steady-state for the remainder of
2024.
- In Q2’24, high-grade drill results from the 2023-2024 drill
program at NAL demonstrated the potential for a significant upgrade
to the mineral resource estimate. Assays identified multiple new,
high-grade lithium zones beyond the planned pit shell model, with
intercepts at thicker and higher grades than previously
encountered. Mineralization within the pit shell model showed
continuity and consistency in grade and thickness.
- Concentrate produced and shipped by NAL and concentrate shipped
by Piedmont:
Share
Units
Q2’24
Q1’24
Q2’23
Piedmont Lithium
Concentrate shipped
100%
dmt thousands
14.0
15.5
—
North American Lithium
Concentrate produced
100%(1)
dmt thousands
49.7
40.4
29.6
Concentrate shipped
100%(2)
dmt thousands
27.7
58.0
—
___________________________________________________________ (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)
- Management is actively engaging in discussions with potential
strategic partners who have expressed interest in project-level
funding for Carolina Lithium. The goal of our partnership process
is to advance the project through ongoing permitting and rezoning
activities. The Carolina Lithium funding strategy also includes
potential government financing options.
- In May 2024, we received the finalized mining permit for the
construction, operation, and reclamation of Carolina Lithium,
allowing us to renew discussions with potential funding
parties.
- Piedmont is considering the timing of the local rezoning
process, which is dependent upon the funding strategy, potential
partnerships, project development plans, and market dynamics.
Engagement continues with community stakeholders, including the
Gaston County Board of Commissioners.
Ewoyaa Lithium Project (Ghana)
- In July 2024, the application to grant the Ewoyaa mining lease
was submitted to the Ghanaian parliament to undergo the
ratification process. In addition to parliamentary ratification,
the project is subject to the receipt of a mine operating permit
and approval by the Environmental Protection Agency of Ghana.
- In July 2024, Piedmont mandated a financial advisor to develop
a funding strategy that includes an offtake-partner process to
support our share of Ewoyaa construction capital and minimize
dilution to Piedmont shareholders. Negotiations have advanced in
Atlantic Lithium’s competitive offtake partnering process to secure
funding for a portion of the joint venture’s annual production
share.
Tennessee Lithium
- Piedmont has converted the proposed Tennessee Lithium project
plans to a second lithium hydroxide train as part of a phased
development for Carolina Lithium. The combined conversion
facilities should allow Piedmont to significantly increase U.S.
lithium hydroxide production capacity while deploying capital and
technical resources more efficiently.
2024 Outlook
Units
H1’24
Q3’24
Q4’24
Full Year 2024
Shipments(1)
dmt thousands
30
30 — 34
63 — 67
126
Capital expenditures
$ millions
9
2 — 3
1 — 2
12 — 14
Investments in and advances to
affiliates
$ millions
23
5 — 7
5 — 6
33 — 36
_____________________________________
(1)
Quarterly shipping targets are rounded to
the nearest thousand tons and may not total to 126,000 dmt due to
rounding.
NAL achieved full run-rate production in June 2024. 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 potential quarterly variations
due to shipping constraints and customer requirements. A shipment
totaling approximately 14,000 dmt was delayed from late Q2’24 to
early Q3’24. As such, Piedmont is targeting approximately 96,500
dmt of spodumene concentrate shipments in H2’24; forecasted NAL
production supports the shipping guidance. We are prioritizing
contract customer shipments and structuring spot shipments to limit
downside exposure.
We expect modest capital expenditures in H2’24, mainly related
to Carolina Lithium. Investments in and advances to affiliates
reflect cash contributions to Sayona Quebec and advances to
Atlantic Lithium for the Ewoyaa project. With the restart capital
program at NAL completed, and approvals at Ewoyaa ongoing, we
expect advances to affiliates to substantially reduce in H2’24. Our
outlook for forecasted capital expenditures and investments in and
advances to affiliates is subject to market conditions.
Safety and Sustainability
In Q2’24, Piedmont released its 2023 Sustainability Report,
summarizing our environmental, social, and governance (“ESG”)
achievements as a development-stage company building a diverse,
integrated portfolio of lithium projects. The report outlines the
sustainable development of Piedmont’s planned, wholly owned lithium
projects and the progress the Company has made in advancing its
long-term ESG strategy.
During the quarter, Piedmont continued policy development and
training to support the long-term objective of establishing a
robust safety and health management system. Employee engagement in
safety events remained strong and identification and reporting of
hazards, unsafe acts, conditions, and safety observations, and near
misses continued to improve.
Q2 2024 Piedmont Lithium Earnings Call
Date:
Thursday, August 8, 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/941918360
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’s 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 “measured,” “indicated,” and
“inferred” mineral resources as such terms are used in the JORC
Code and Canada’s 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’s 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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
$
13,227
$
—
$
26,628
$
—
Costs of sales
12,601
—
25,311
—
Gross profit
626
—
1,317
—
Exploration costs
9
440
62
1,197
Selling, general and administrative
expenses
9,330
11,987
19,204
20,608
Total operating expenses
9,339
12,427
19,266
21,805
Loss from equity method investments
(4,910)
(2,675)
(10,350)
(5,417)
Loss from operations
(13,623)
(15,102)
(28,299)
(27,222)
Interest income
653
1,165
1,480
1,928
Interest expense
(76)
(11)
(298)
(26)
Gain (loss) on sale of equity method
investments
—
3,975
(13,886)
7,250
Other (loss) gain
(288)
(17)
965
(66)
Total other income (loss)
289
5,112
(11,739)
9,086
Loss before income taxes
(13,334)
(9,990)
(40,038)
(18,136)
Income tax (benefit) expense
(2)
649
(3,095)
1,142
Net loss
$
(13,332)
$
(10,639)
$
(36,943)
$
(19,278)
Basic and diluted:
Loss per share
$
(0.69)
$
(0.55)
$
(1.91)
$
(1.02)
Weighted-average shares outstanding
19,370
19,187
19,348
18,857
PIEDMONT LITHIUM INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts) (Unaudited)
June 30, 2024
December 31,
2023
Assets
Cash and cash equivalents
$
58,978
$
71,730
Accounts receivable
13,320
595
Other current assets
11,395
3,829
Total current assets
83,693
76,154
Property, plant and mine development,
net
134,270
127,086
Advances to affiliates
37,093
28,189
Other non-current assets
1,865
2,164
Equity method investments
82,719
147,662
Total assets
$
339,640
$
381,255
Liabilities and Stockholders’
Equity
Accounts payable and accrued expenses
$
5,894
$
11,580
Payables to affiliates
81
174
Current portion of long-term debt
642
149
Deferred revenue
24,347
—
Other current liabilities
5,053
29,463
Total current liabilities
36,017
41,366
Long-term debt, net of current portion
2,067
14
Operating lease liabilities, net of
current portion
951
1,091
Other non-current liabilities
980
431
Deferred tax liabilities
—
6,023
Total liabilities
40,015
48,925
Stockholders’ equity:
Common stock; $0.0001 par value, 100,000
shares authorized; 19,371 and 19,272 shares issued and outstanding
as of June 30, 2024 and December 31, 2023, respectively
2
2
Additional paid-in capital
467,808
462,899
Accumulated deficit
(163,787)
(126,844)
Accumulated other comprehensive loss
(4,398)
(3,727)
Total stockholders’ equity
299,625
332,330
Total liabilities and stockholders’
equity
$
339,640
$
381,255
PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands) (Unaudited)
Six Months Ended
June 30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(36,943)
$
(19,278)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation expense
4,640
4,311
Loss from equity method investments
10,350
5,417
Loss (gain) on sale of equity method
investments
13,886
(7,250)
Gain on equity securities
(1,594)
—
Deferred taxes
(6,246)
1,142
Depreciation and amortization
156
106
Noncash lease expense
532
96
Loss on sale of assets
656
—
Unrealized foreign currency translation
(gains) losses
(36)
13
Changes in assets and liabilities:
Accounts receivable
(12,725)
—
Other assets
1,950
(2,019)
Operating lease liabilities
(472)
(80)
Accounts payable
(25)
(1,072)
Payables to affiliates
(93)
—
Deferred revenue
24,347
—
Accrued expenses and other liabilities
(27,164)
(1,072)
Net cash used in operating activities
(28,781)
(19,686)
Cash flows from investing
activities:
Capital expenditures
(8,622)
(28,696)
Advances to affiliates
(8,226)
(4,742)
Proceeds from sale of marketable
securities
45
—
Proceeds from sale of shares in equity
method investments
49,103
—
Additions to equity method investments
(14,966)
(28,218)
Net cash provided by (used in) investing
activities
17,334
(61,656)
Cash flows from financing
activities:
Proceeds from issuances of common stock,
net of issuance costs
—
71,084
Payments of long-term debt and insurance
premiums financed
(651)
(239)
Payments to tax authorities for employee
stock-based compensation
(654)
—
Net cash (used in) provided by financing
activities
(1,305)
70,845
Net decrease in cash
(12,752)
(10,497)
Cash and cash equivalents at beginning of
period
71,730
99,247
Cash and cash equivalents at end of
period
$
58,978
$
88,750
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 on sale of assets, 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 on sale of assets, 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 on
sale of assets, 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.
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
June 30, 2024
March 31, 2024
June 30, 2023
(in thousands, except per share
amounts)
Diluted EPS
Diluted EPS
Diluted EPS
Net loss
$
(13,332)
$
(0.69)
$
(23,611)
$
(1.22)
$
(10,639)
$
(0.55)
Loss (gain) on sale of equity method
investments(1)
—
—
13,886
0.72
(3,975)
(0.20)
Loss on sale of assets
656
0.03
—
—
—
—
Gain on equity securities(2)
(210)
(0.01)
(1,384)
(0.07)
—
—
(Gain) loss from foreign currency
exchange(3)
(158)
(0.01)
131
0.01
17
—
Severance and reorganization related
costs(4)
314
0.02
1,780
0.09
—
—
Other costs(5)
81
—
431
0.02
224
0.01
Tax effect of adjustments(6)
(2)
—
(3,093)
(0.16)
55
—
Adjusted net loss
$
(12,651)
$
(0.65)
$
(11,860)
$
(0.61)
$
(14,318)
$
(0.75)
______________________________________________________
(1)
Loss 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. Gain on sale of equity method investments in the
three months ended June 30, 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 security holdings in
Atlantic Lithium and Ricca Resources.
(3)
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.
(4)
Severance and reorganization related costs
related to our 2024 cost savings plan.
(5)
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.
(6)
No income tax impacts have been given to any items that were
recorded in jurisdictions with full valuation allowances.
EBITDA and Adjusted EBITDA
Three Months Ended
(in thousands)
June 30, 2024
March 31, 2024
June 30, 2023
Net loss
$
(13,332)
$
(23,611)
$
(10,639)
Interest income, net
(577)
(605)
(1,154)
Income tax (benefit) expense
(2)
(3,093)
649
Depreciation and amortization
75
81
61
EBITDA
(13,836)
(27,228)
(11,083)
Loss (gain) on sale of equity method
investments(1)
—
13,886
(3,975)
Loss on sale of assets
656
—
—
Gain on equity securities(2)
(210)
(1,384)
—
(Gain) loss from foreign currency
exchange(3)
(158)
131
17
Severance and reorganization related
costs(4)
314
1,780
—
Other costs(5)
81
431
224
Adjusted EBITDA
$
(13,153)
$
(12,384)
$
(14,817)
______________________________________________________
(1)
Loss 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. Gain on sale of equity method investments in the
three months ended June 30, 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 security holdings in
Atlantic Lithium and Ricca Resources.
(3)
(Gain) 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.
(4)
Severance and reorganization related costs
related to our 2024 cost savings plan.
(5)
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808334981/en/
Erin Sanders SVP, Corporate Communications & Investor
Relations +1 704 575 2549 esanders@piedmontlithium.com
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