Pivotal player in the US electric vehicle (EV) supply chain Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) has shared a comprehensive update on its corporate and project developments.
Record production in Quebec
The North American Lithium (NAL) operation, a joint venture with Sayona Mining in Quebec, reported record production of 34,237 dry metric tonnes of spodumene concentrate in the fourth quarter of 2023, marking a 9% increase on the previous quarter.
What’s more, the company anticipates further advancements in productivity and cost-efficiency, particularly upon the mid-2024 completion of key capital projects like the crushed ore storage dome, which is expected to significantly reduce production costs.
“We are very pleased with the progress at NAL and anticipate continued operating improvements through 2024," said Piedmont Lithium (ASX:PLL, OTC:PLLTL) president and CEO Keith Phillips.
“NAL is North America’s only operating spodumene mine, and as such, is quite strategic to the long-term customers we serve.
“As we complete our operational review with our partners at Sayona, our goal is to optimise production rates and operating costs and maintain leverage for the recovery in lithium prices that we anticipate based upon market dynamics and historical pricing trends.”
Ewoyaa partnership with Atlantic Lithium
In addition to its strong showing in Quebec, Piedmont Lithium is progressing with the Ewoyaa Lithium Project in Ghana, in partnership with Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11).
“We are excited about the potential of the Ewoyaa project,” said Phillips.
The project, expected to commence construction in 2025, promises high returns with its low capital and operational expenditure profile.
“We expect 2024 project spending to be minimal with a focus on advancing the project through the environmental permitting and approvals processes to prepare for an ultimate investment decision in 2025,” Phillips said.
Piedmont is exploring non-dilutive financing options to support its share of the project’s capital, ensuring minimal impact on shareholder value.
US projects
Piedmont is also enthusiastic about its own strategic projects in the US, focusing on developing an integrated lithium hydroxide business while carefully managing development pace and capital expenditure amid current market conditions.
The company's efforts to secure permits and approvals for its Carolina and Tennessee projects are ongoing, with decisions from regulatory bodies anticipated in the near future.
Corporate resilience
On the corporate front, Piedmont ended 2023 in a strong financial position, holding $72 million in cash and around $38 million in marketable securities.
The company has initiated a cost-saving plan targeting some $10 million in annual savings, part of a broader strategy to navigate the cyclical nature of lithium prices and prepare for future market recoveries.
In parallel to all this the company has had a recent legal victory, with the US District Court for the Eastern District of New York dismissing a securities class action lawsuit against the company and two of its executives.