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Sep 30, 2023
Piedmont Lithium Q3 2023 Earnings Report
Inaugural revenue and profit were recorded on commencement of lithium concentrate shipments.
Key Takeaways
Piedmont Lithium reported its Q3 2023 results, marking a transformational quarter with its first customer shipments from the North American Lithium joint-venture. The company achieved revenue of $47.1 million, a gross profit of $23.8 million, and a net income of $22.9 million. However, results were impacted by a 45% decline in spot lithium prices during the quarter.
Revenue of $47.1 million was achieved on sales of 29,011 dry metric tons (dmt) of lithium concentrate.
Gross profit reached $23.8 million, with a gross profit margin of 50.4%.
Net income was reported at $22.9 million, and adjusted net income was $16.9 million.
Cash and cash equivalents totaled $94.5 million as of September 30, 2023.
Forward Guidance
Piedmont Lithium anticipates shipping approximately 27,500 dmt of lithium concentrate in Q4 2023, confirming the full-year guidance of approximately 56,500 dmt for the start-up year, 2023. Capital expenditures are expected to be $18 million - $22 million. Investments in and advances to affiliates are projected to be $10 million - $14 million.
Positive Outlook
- Confirmation of full-year shipment guidance of approximately 56,500 dmt of lithium concentrate.
- Expected shipments of approximately 27,500 dmt in Q4 2023.
- Focus on advancing projects with the assistance of federal government finance agencies and strategic partners.
- Commitment to minimizing dilution to existing shareholders.
- Strong global EV demand with unit sales growth and increasing battery pack capacity.
Challenges Ahead
- Material impact from the 45% decline in spot lithium prices during the quarter.
- Initial shipments being made on the spot market due to the ramp up of long-term contracts.
Historical Earnings Impact
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