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Dec 31, 2023
Piedmont Lithium Q4 2023 Earnings Report
Piedmont Lithium reported Q4 and full year 2023 results, highlighting NAL operations ramping up, growth projects progressing, and balance sheet reinforced.
Key Takeaways
Piedmont Lithium's Q4 2023 results were impacted by a sharp downturn in lithium prices, despite record production levels at North American Lithium (NAL) in December. The company is shifting towards multi-year customer contracts and reducing reliance on spot sales. Cost-saving measures, including workforce reduction, are being implemented to bolster the balance sheet amid market challenges.
NAL achieved record production levels in December.
The company is shifting to multi-year customer contracts to reduce volatility.
Piedmont is advancing permitting and regulatory approvals in Ghana and North Carolina.
Cost-saving plans are being implemented to reduce operating expenses.
Forward Guidance
Piedmont Lithium anticipates capital expenditures between $10 million and $14 million and investments in and advances to affiliates between $32 million and $38 million for 2024. Funding for Ewoyaa is expected to be minimal in 2024, with a final investment decision anticipated by 2025.
Positive Outlook
- Capital expenditures are forecasted between $10 million and $14 million.
- Investments in and advances to affiliates are expected to be between $32 million and $38 million.
- Piedmont has the right to purchase the greater of 50% of production or 113,000 dmt/year under the Sayona Quebec offtake agreement.
- The Company expects to provide more stable price realizations and reduce reliance on unpredictable spot market sales.
- Funding for Ewoyaa to be minimal in 2024.
Challenges Ahead
- Capital expenditures and investments in affiliates are subject to market conditions.
- Actual purchases in 2024 may differ from the allotment based on how deliveries under contract are scheduled.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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