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Dec 31, 2024
Piedmont Lithium Q4 2024 Earnings Report
Piedmont Lithium reported record shipments and revenue, improved gross profit, and achieved cost savings in Q4 2024.
Key Takeaways
Piedmont Lithium reported Q4 2024 results, achieving record shipments of spodumene concentrate and revenue. The company also exceeded its cost savings target and had a strong cash position. A merger agreement with Sayona Mining was entered into, expected to close in mid-2025.
Piedmont achieved record Q4 2024 shipments of approximately 55,700 dmt of spodumene concentrate with revenue of $45.6 million.
NAL operated at a high level with 50,922 dmt produced, 90% mill utilization, and 68% lithium recovery in Q4 2024.
Piedmont exceeded its target and achieved $14 million in annual cost savings as part of 2024 Cost Savings Plan.
Piedmont entered into a definitive merger agreement with Sayona Mining, expected to close in mid-2025.
Forward Guidance
Piedmont expects to ship approximately 113,000 to 130,000 dmt of spodumene concentrate in 2025. Capital expenditures are expected to be $6-9 million and Investments in and advances to affiliates $7 - $13 million.
Positive Outlook
- Shipments in 2025 are expected to be long-term customer shipments or spot shipments structured to minimize downside risk.
- Production at North American Lithium supports the Company’s 2025 shipment guidance.
- Piedmont and Sayona Mining are continuing to explore commingling shipments to achieve material transport cost savings and improve profitability.
- Prioritizing contract customer shipments and structuring spot shipments to limit downside exposure.
- Continued operational discipline at NAL and approvals at Ewoyaa ongoing, we expect payments to affiliates to substantially reduce in 2025.
Challenges Ahead
- Lithium markets remain challenging.
- The timing of shipments is subject to shipping logistics, port and weather conditions, and customer requirements.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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