Strategic Review Supports Continued Production Ramp-Up at North American Lithium
09 April 2024 - 12:50PM
Business Wire
- Spodumene production at North American Lithium (“NAL”)
continues to ramp-up on plan
- Process recoveries now exceeding ramp-up targets
- Multiple daily production records achieved in March 2024
- Product quality remains consistent at grades averaging 5.45%
Li2O
- Completion of key capital initiatives in Q2 2024 expected to
significantly reduce operating costs
- Shipments to contract customers commencing in 2024, reducing
reliance on volatile spot markets
- Piedmont shipped ~15,000t in Q1 2024; plans full-year shipments
of ~126,000t weighted to H2’24
Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL;
ASX: PLL), a leading global supplier of lithium resources
critical to the U.S. electric vehicle (“EV”) supply chain,
announced that, following a detailed operational review, the joint
venture partners of North American Lithium (“NAL”) have agreed to
complete several ongoing capital project initiatives and continue
operations with the goal of completing ramp-up activities to
achieve steady state production within 2024.
NAL is jointly owned by Piedmont (25%) and Sayona Mining (ASX:
SYA) (75%). Production at NAL commenced in March 2023, and the
operations have been undergoing steady improvement. Process plant
recoveries are now exceeding internal expectations, a key
achievement in NAL’s ramp-up process. March month-to-date lithium
recoveries were 69%, exceeding the ramp-up target of 67%, with
global recovery of 62% during the July 2023 through March 2024
period. Production of spodumene concentrate has steadily increased
with several daily production records achieved in March 2024,
including the newest daily production record of 740 metric tons.
Current plant throughput rates are in line with forecast
expectations at 161 tonnes per hour and product quality remains
consistent at 5.45% Li2O with moisture and other elements in line
with expectations.
The joint venture partners have conducted an operational review
to assess the pace of the production ramp-up in the context of a
challenging lithium price environment. The review concluded that
operations are generally ramping-up as planned, and that completion
of two important capital improvement projects – a crushed ore
storage dome and crushed ore re-feed system, both expected to be
commissioned in May 2024 – should help operations achieve
production increases and meaningful unit cost improvements. Unit
mining costs also are expected to improve as operations move past
underground workings and into fresh ore near the end of 2024.
“As the largest producing spodumene mine in North America, NAL
is strategically important to our portfolio, our customers, and the
market,” said Keith Phillips, President and Chief Executive Officer
of Piedmont Lithium. “NAL production has been ramping up well,
albeit in a challenging lithium market. With the imminent
completion of important capital improvement projects expected to
lead to production increases and operating cost improvements, we
believe the project is well-positioned for the market recovery we
anticipate and to operate successfully over the long term.”
About Piedmont Lithium
Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a
world-class, multi-asset, integrated lithium business focused on
enabling the transition to a net zero world and the creation of a
clean energy economy in North America. Our goal is to become one of
the largest lithium hydroxide producers in North America by
processing spodumene concentrate produced from assets where we hold
an economic interest. Our projects include our Carolina Lithium and
Tennessee Lithium projects in the United States and partnerships in
Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic
Lithium (AIM: ALL; ASX: A11). We believe these geographically
diversified operations helps us to play a pivotal role in
supporting America’s move toward energy independence and the
electrification of transportation and energy storage. For more
information, follow us on Twitter @PiedmontLithium and visit
www.piedmontlithium.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of or as described in securities legislation in the
United States and Australia, including statements regarding
exploration, development construction, production, and ramp up
activities or the timing of these activities, of Sayona Mining,
Atlantic Lithium and Piedmont, including regarding operating cost
improvements, regulatory approvals or permits or the timing
thereof, project spend, timing of completion of capital projects
and the effects of such projects, timing of planned deliveries and
ability to improve productivity; current plans for Piedmont’s
mineral and chemical processing projects; Piedmont’s potential
acquisition of an ownership interest in Ewoyaa, including financing
options, the timing of final investment decisions and project
spend; strategy; market cycles; lithium prices; equity values;
costs of new project developments; lithium shortages; lithium
market recovery; certain Company approvals, permitting, partnering
and debt funding discussions; a recently completed workforce
reduction; expense management and possible or assumed future
financial results or financial condition. Such forward-looking
statements involve substantial and known and unknown risks,
uncertainties, and other risk factors, many of which are beyond our
control, and which may cause actual timing of events, results,
performance or achievements and other factors to be materially
different from the future timing of events, results, performance,
or achievements expressed or implied by the forward-looking
statements. Such risk factors include, among others: (i) that
Piedmont, Sayona Mining or Atlantic Lithium may be unable to
commercially extract mineral deposits, (ii) that Piedmont’s, Sayona
Mining’s or Atlantic Lithium’s properties may not contain expected
reserves, (iii) risks and hazards inherent in the mining business
(including risks inherent in exploring, developing, constructing
and operating mining projects, environmental hazards, industrial
accidents, weather or geologically related conditions), (iv)
uncertainty about Piedmont’s ability to obtain required capital to
execute its business plan, (v) Piedmont’s ability to hire and
retain required personnel, (vi) changes in the market prices of
lithium and lithium products, (vii) changes in technology or the
development of substitute products, (viii) the uncertainties
inherent in exploratory, developmental and production activities,
including risks relating to permitting, zoning and regulatory
delays related to our projects as well as the projects of our
partners in Quebec and Ghana, (ix) uncertainties inherent in the
estimation of lithium resources, (x) risks related to competition,
(xi) risks related to the information, data and projections related
to Sayona Mining or Atlantic Lithium, (xii) occurrences and
outcomes of claims, litigation and regulatory actions,
investigations and proceedings, (xiii) risks regarding our ability
to achieve profitability, enter into and deliver product under
supply agreements on favorable terms, our ability to obtain
sufficient financing to develop and construct our projects, our
ability to comply with governmental regulations and our ability to
obtain necessary permits, (xiv) our ability to deliver on our
expense management efforts and other cost improvements expected
upon completion of key capital projects as well as our future cash
payments associated with these initiatives and potential future
impairment charges and (xv) other uncertainties and risk factors
set out in filings made from time to time with the U.S. Securities
and Exchange Commission (“SEC”) and the Australian Securities
Exchange, including Piedmont’s most recent filings with the SEC.
The forward-looking statements, projections and estimates are given
only as of the date of this press release and actual events,
results, performance, and achievements could vary significantly
from the forward-looking statements, projections and estimates
presented in this press release. Readers are cautioned not to put
undue reliance on forward-looking statements. Piedmont disclaims
any intent or obligation to update publicly such forward-looking
statements, projections, and estimates, whether as a result of new
information, future events or otherwise. Additionally, Piedmont,
except as required by applicable law, undertakes no obligation to
comment on analyses, expectations or statements made by third
parties in respect of Piedmont, its financial or operating results
or its securities.
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version on businesswire.com: https://www.businesswire.com/news/home/20240409807403/en/
Erin Sanders SVP, Corporate Communications & Investor
Relations T: +1 704 575 2549 E: esanders@piedmontlithium.com
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