BELMONT, N.C. - Piedmont Lithium (NASDAQ: NASDAQ:PLL; ASX: PLL), a key player in the North American lithium market, has announced encouraging drilling outcomes from its North American Lithium (NAL) operation in Quebec, indicating potential enhancements to the site's mineral resource estimate. These findings come on the heels of similar results from May 2024 and are part of an ongoing drill program aimed at expanding the operation's lithium zones.
The company's recent exploration has revealed new high-grade lithium areas that extend beyond the current pit shell model, with intercepts surpassing prior thickness and grade levels. Additionally, the consistency and continuity of mineralization within the planned pit shell have been confirmed. Piedmont Lithium, which owns a 25% stake in NAL alongside Sayona Mining Limited's 75% share, has scheduled an additional 30,000 meters of drilling for 2024.
NAL holds the distinction of being North America's largest lithium operation and the sole producer of IRA-compliant spodumene concentrate in the region. Since resuming production in March 2023, the operation has consistently achieved record quarterly volumes of spodumene concentrate and is on track to reach steady-state production in the second half of 2024.
Keith Phillips, President and CEO of Piedmont Lithium, emphasized the significance of the latest drill results for the strategic value of North American Lithium. He expressed anticipation for the forthcoming update to the mineral resource estimate, which is expected to reflect both quantity and classification improvements.
Investors are cautioned that disclosures from Sayona Mining, prepared in accordance with the JORC Code and Canada’s National Instrument 43-101, may not be directly comparable to those made by Piedmont, which are governed by U.S. federal securities laws.
Piedmont Lithium is committed to contributing to North America's clean energy economy through its lithium hydroxide production from spodumene concentrate sourced from its various interests. The company's portfolio includes the Carolina Lithium and Tennessee Lithium projects in the U.S., as well as partnerships in Quebec and Ghana.
This update is based on a press release statement from Piedmont Lithium.
InvestingPro Insights
Piedmont Lithium's recent announcement of promising drilling results at its North American Lithium operation has underscored the company's potential in the lithium market. InvestingPro data and tips provide further insights into the company's financial health and stock performance that could be of interest to investors considering Piedmont Lithium's prospects.
InvestingPro Data highlights include a market capitalization of $171.19 million USD, reflecting the company's size and market value. Despite the optimistic drilling outcomes, the stock has experienced a significant drop, with a one-week price total return of -8.05%. This could be indicative of market volatility or investor reactions to broader economic factors.
Two InvestingPro Tips that may be relevant to investors are that analysts do not expect Piedmont Lithium to be profitable this year, and the company's stock price often moves in the opposite direction of the market. These insights suggest that while the company has promising operational developments, its financial performance may not yet align with its operational successes. Additionally, the stock's contrarian movement to the market could indicate a unique investment opportunity for those looking to hedge against market trends.
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