Piedmont posts first revenue and profit as lithium prices slide

Piedmont Lithium (NASDAQ: PLL; ASX: PLL) recorded its first revenues, generated from its 25%-owned North American Lithium mine in Quebec, during the third quarter. At the same time, lithium spot prices dropped by nearly half.

The company reported adjusted net income of $17 million or 88¢ per share during the period on revenue of $47.1 million. It sold 29,011 dry metric tons (dmt) of lithium concentrate, making its first shipments to customers.

“While we are pleased with Piedmont’s operational and financial performances, our results were materially impacted by the 45% decline in spot lithium prices during the quarter,” said Keith Phillips, Piedmont Lithium president and CEO in a release. “Virtually all of our offtake tonnage will eventually be sold under long-term contracts announced earlier this year, but initial shipments are being made on the spot market.”

Benchmark spodumene concentrate price fell from more than US$3,500/dmt at the start of the quarter to approximately US$1,900/dmt.

Piedmont expects to have two shipments in the fourth quarter and to confirm its previous full-year outlook of shipping roughly 56,500 dmt of lithium concentrate. The North American Lithium mine is 75% held by Sayona Mining (ASX: SYA).

Shares of Piedmont closed the day in New York 2% higher at US$28.31. The lithium developer has a market capitalization of US$551 million.

The company has an option to earn up to 50% of Atlantic Lithium‘s (AIM ALL; ASX: A11) advanced Ewoyaa project in Ghana, and it’s building a lithium hydroxide plant in Tennessee. Permitting of its advanced North Carolina lithium project in the U.S. has been held up by local opposition.

The Australian company, since redomiciled to the U.S., aims to become one of the world’s lowest cost producers of lithium hydroxide, and says it is the most strategically located to serve the fast-growing North American electric vehicle supply chain, with operations already established in the U.S. and Canada.