NAL Operations Ramping, Growth Projects
Progressing, and Balance Sheet Reinforced
- $39.8 million full year revenue on sales of 43.2 thousand dry
metric tons (dmt) of spodumene concentrate
- $5.7 million full year gross profit, reflecting settlement
accruals in Q4’23
- Ramp up continues at NAL with further improvements in
production and costs expected in 2024
- 2024 shipments expected to shift toward multi-year customer
contracts; de-emphasizing volatile spot sales
- Permitting and regulatory approvals advancing in Ghana and
North Carolina
- $71.7 million in cash and cash equivalents at December 31,
2023
- Net proceeds of approximately $49.1 million from sales of
Sayona Mining and Atlantic Lithium shares in Q1’24
Piedmont Lithium Inc. (“Piedmont” or the “Company”) (Nasdaq:PLL;
ASX:PLL), a leading global supplier of lithium resources critical
to the U.S. electric vehicle supply chain, today announced fourth
quarter and full year financial results for 2023.
“2023 was a pivotal year for Piedmont as our Quebec
joint-venture, North American Lithium (“NAL”), successfully
commenced operations last March, leading to the first revenue in Q3
via shipments made under our NAL offtake agreement. As the largest
lithium operation in North America, NAL has been successfully
ramping up production over the past 10 months, with production
hitting record levels in December. We are completing a few
remaining capital projects in the first half of 2024 that we expect
will result in further improvements in production and operating
costs as NAL looks to achieve full run-rate production levels later
this year.
“We are pleased with the production ramp-up and prospects for
long-term operations at NAL; however, our 2023 financial results
were adversely impacted by the sharp downturn in lithium prices
that occurred during the year and into 2024. We plan to shift our
offtake volumes towards our multi-year customer contracts and
reduce shipment volumes under spot sales agreements. We expect this
strategy to result in less volatility and higher average realized
prices.
“While NAL is a current focus given its status as a producing
asset, we believe Piedmont is well-positioned for the long-term
with growth opportunities across our project portfolio. In Ghana,
we are encouraged by the support of the Ghanaian government
evidenced by the sovereign wealth fund’s investment into the Ewoyaa
Lithium Project (“Ewoyaa”) announced last year. Ewoyaa continues to
advance through the permitting and approvals processes, and the
project is poised to be a near-term spodumene producer with
exceptional logistics and relatively modest capital and operating
costs.
“We continue to make advances towards our mining permit in North
Carolina for our Carolina Lithium Project, with the most recent set
of questions from the state indicating that the review process for
this important milestone could be approaching its conclusion. Our
Carolina and Tennessee projects are strategically located in the
growing Battery Belt and critical to the goal of achieving some
level of lithium self-sufficiency in America. These projects will
be advanced on timelines that take into account lithium market
conditions, strategic partnering efforts, and government debt
financing opportunities.
“Lithium has been a cyclical business for the past decade with
trough markets in pricing generally followed by new record highs.
As we navigate the current market, which seems to be in the throes
of ‘peak pessimism,’ we’re bolstering our balance sheet by
monetizing non-core assets, deferring capital spending, and
employing cost savings plans designed to reduce our corporate
overhead. Our goal is to protect shareholder value in this
downturn, while remaining strategically positioned for the lithium
market recovery that we believe is a matter of time.”
Keith Phillips, Piedmont Lithium President and Chief
Executive Officer
Fourth Quarter and Full Year 2023 Financial
Highlights
All references to dry metric tons (“dmt”) in this release relate
to spodumene concentrate.
Units
2023
Q4’23
Q3’23
Sales
Concentrate shipped
dmt thousands
43.2
14.2
29.0
Revenue
$ millions
39.8
(7.3
)
47.1
Realized price (~5.5% Li2O)(1)
$/dmt
920
(513
)
1,624
Realized cost of sales(2)
$/dmt
789
756
805
Profitability
Gross profit
$ millions
5.7
(18.1
)
23.8
Gross profit margin
%
14.3
NM
50.4
Net income (loss)(3)
$ millions
(21.8
)
(25.4
)
22.9
Adjusted net income (loss)(4)
$ millions
(31.3
)
(23.7
)
16.9
Adjusted diluted EPS(4)
$
(1.64
)
(1.23
)
0.88
Adjusted EBITDA(4)
$ millions
(35.1
)
(24.4
)
16.2
Adjusted EBITDA margin(4)
%
(88.1
)
NM
34.3
Cash
Cash and cash equivalents(5)
$ millions
71.7
71.7
94.5
____________________________________ (1)
Realized price is the average estimated
price, net of certain distribution and other fees, for ~5.5% Li2O
grade, which includes referenced pricing data up to December 31,
2023 and is subject to final adjustment. The final adjusted price
may be higher or lower than the estimated average realized price
based on future price movements.
(2)
Realized cost of sales is the average cost
of sales including Piedmont’s offtake pricing agreement with Sayona
Quebec for the purchase of spodumene concentrate at a market price
subject to a floor of $500 per metric ton and a ceiling of $900 per
metric ton, adjustments for product grade, freight, and
insurance.
(3)
Net income (loss) includes gain (loss) on
dilution from equity method investments, which is reported on a
one-quarter lag, of $8.0 million, $1.8 million and $17.0 million,
for the three months ended September 30, 2023, three months ended
December 31, 2023, and twelve months ended December 31, 2023,
respectively.
(4)
See end of this release for reconciliation
of non-GAAP measures.
(5)
Cash and cash equivalents are reported as
of the end of the period.
NM - Not meaningful
Fourth Quarter and Recent Business Highlights
Piedmont Lithium
- Purchased 14.2 thousand dmt (~5.7%% Li2O) from NAL in Q4’23 and
shipped to customers.
- A shipment totaling 13.1 thousand dmt was delayed from Q4’23 to
mid-January 2024 due to inclement weather and port congestion.
- $29.2 million accrued at December 31, 2023 for settlements in
2024 associated with spot shipments in 2023, negatively impacting
Q4’23 revenue and gross profit.
- We had $71.7 million in cash and cash equivalents at December
31, 2023. In Q1’24, we sold our holdings in Sayona Mining and a
portion of our holdings in Atlantic Lithium for approximately $49.1
million. The sale of these shares had no impact on our joint
ventures or offtake positions with either Sayona Quebec or Atlantic
Lithium.
- In February 2024, we initiated a cost-savings plan to reduce
operating expenses by $10 million annually and defer capital
spending in 2024. As part of our plan, we reduced our workforce by
27%, mainly within our corporate office staff. We will record
approximately $1 million in severance and related costs in the
first quarter of 2024, and expect to recognize the majority of our
cost savings in 2024.
- In Q1’24, the U.S. District Court for the Eastern District of
New York granted Piedmont’s motion to dismiss a securities class
action lawsuit, originally filed in July 2021, against Piedmont and
two of its executives.
North American Lithium (Quebec, Canada)
- In Q4’23, NAL produced 34.2 thousand dmt and shipped 23.9
thousand dmt, of which 14.2 thousand dmt were sold to
Piedmont.
- In October 2023, Sayona Mining provided a forecast for the
one-year period July 1, 2023 through June 30, 2024 projecting
production of 140,000 to 160,000 dmt and shipments of 160,000 to
180,000 dmt.
- In November 2023, Sayona released initial drill results from
the 2023 drill campaign at NAL, identifying multiple thick,
high-grade, spodumene-bearing pegmatites. Additional assays and
drill results are pending, and Sayona Quebec expects to publish a
mineral resource update in 2024, which may upgrade the
classification of current mineral resources and offer the
possibility to convert mineral resources to additional mineral
reserves.
- In December 2023, operations at NAL achieved records in
concentrate production (13.9 thousand dmt), mill availability
(80%), and global lithium recovery (66%).
- In Q4’23, NAL substantially progressed ongoing capital
improvement projects, including a capacity increase for its
tailings storage facility and a new crushed-ore dome. In
particular, the crushed ore dome will enable the operations at NAL
to achieve better mechanical availability and process stability.
Both production and cash operating costs at NAL are expected to
improve upon completion of these projects in mid-2024.
- Concentrate produced and shipped by NAL and concentrate shipped
by Piedmont:
Share
Units
FY23
Q4’23
Q3’23
North American Lithium
Concentrate produced
100%(1)
dmt thousands
98.8
34.2
31.5
Concentrate shipped
100%(2)
dmt thousands
72.1
23.9
48.2
Piedmont Lithium
Concentrate shipped
100%
dmt thousands
43.2
14.2
29.0
______________________________ (1)
Concentrate produced represents 100% of
NAL’s production.
(2)
Concentrate shipped represents 100% of
NAL’s shipments, inclusive of shipments to Piedmont totaling 29.0
thousand dmt and 14.2 thousand dmt in Q3’23 and Q4’23,
respectively.
Note: The table above reports quarterly
and year-to-date information in accordance with Piedmont’s fiscal
year reporting, which is on a calendar-year basis. Concentrate
produced and concentrate shipped (above) are reported in the
periods in which activities actually occurred. For financial
statement purposes, Piedmont reports income (loss) from its 25%
ownership in Sayona Quebec, which includes NAL, on a one-quarter
lag.
Ewoyaa Project (Ghana)
- In Q4’23, Ghana’s Ministry of Lands and Natural Resources
granted a mining lease for the Ewoyaa project. The lease remains
subject to ratification by the Ghanaian Parliament. The mining
lease includes a 13% free-carried interest in Ewoyaa for the
Government of Ghana and a 10% royalty.
- In January 2024, the Minerals Income Investment Fund, Ghana’s
sovereign wealth fund, commenced its funding of Atlantic Lithium
with a $5 million subscription of Atlantic Lithium’s common
stock.
- In February 2024, Patrick Brindle, Piedmont’s Executive Vice
President and Chief Operating Officer, stepped down as a member of
Atlantic Lithium’s board of directors due to our reduction in
ownership of Atlantic Lithium.
Carolina Lithium (North Carolina)
- Piedmont continues to advance the state mining permit process.
In January 2024, Piedmont submitted a response to additional
information request (“ADI”) #3 to North Carolina’s Department of
Environmental Quality Division of Energy, Minerals, and Land
Resources (“DEMLR”). Subsequently, DEMLR provided an ADI #4, which
consisted of two further questions. We note that the questions
posed by DEMLR are straightforward in nature and the number of
questions in ADI #4 is substantially reduced from prior information
requests. We are encouraged by this most recent round of questions
and look forward to concluding the state mine permitting process in
due course.
- Piedmont continues to engage with community stakeholders,
including the Gaston County Board of Commissioners, in advance of
anticipated rezoning efforts.
Tennessee Lithium (Tennessee)
- In Q4’23, Piedmont purchased a tailings storage facility
adjacent to the Tennessee Lithium plant site for the placement of
inert tailings to be produced as part of the alkaline pressure
leach process.
- Also in Q4’23, Piedmont negotiated a purchase agreement to
acquire a large industrial complex in close proximity to the
Tennessee Lithium plant site.
- In 2024, Piedmont will continue to assess funding strategies
for Tennessee Lithium, which has already received the final
material permits required to proceed with construction of the
30,000 metric ton per year lithium hydroxide conversion
facility.
Exploration and Development
- In October 2023, we paid $1.5 million for a 19.9% equity
interest in Vinland Lithium, a Canadian-based entity jointly owned
with Sokoman Minerals and Benton Resources. Vinland Lithium owns
the Killick Lithium Project, a large exploration property
prospective for lithium located in southern Newfoundland,
Canada.
- We have entered into an earn-in agreement with Vinland Lithium
to acquire up to a 62.5% equity interest in Killick Lithium through
staged-investments. As part of our investment, we entered into a
marketing agreement with Killick Lithium for 100% marketing rights
and right of first refusal to purchase 100% of all lithium products
produced by Killick Lithium on a life-of-mine basis at competitive
commercial rates.
2024 Outlook
2024
Capital expenditures
$10 million — $14 million
Investments in and advances to
affiliates
$32 million — $38 million
The majority of forecasted capital expenditures relate to
Carolina Lithium and Tennessee Lithium. Investments in and advances
to affiliates reflect cash contributions to Sayona Quebec and
advances to Atlantic Lithium for the Ewoyaa project. Our outlook
for forecasted capital expenditures and investments in and advances
to affiliates is subject to market conditions.
Piedmont expects funding for Ewoyaa to be minimal in 2024 and is
evaluating a range of options that would be non-dilutive to
Piedmont Lithium shareholders to fund its share of project capital.
We expect a final investment decision for Ewoyaa to be made by
2025.
Under our offtake agreement with Sayona Quebec, Piedmont has the
right to purchase the greater of 50% of production or 113,000
dmt/year, in addition to the 13.1 thousand dmt shipment that sailed
in mid-January. However, actual purchases in 2024 may differ from
the allotment based on how deliveries under contract are scheduled.
As we begin deliveries under our customer contracts, we expect to
provide more stable price realizations and reduce our reliance on
unpredictable spot market sales.
Safety and Sustainability
Piedmont continues to build safety as a foundational pillar of
its business and to further development of policies and procedures
to enhance the Company’s safety and environmental management
systems. Engagement in identifying hazards also improved with
increased reporting that enabled proactive strategies for
addressing unsafe conditions.
Additionally, Piedmont performed a materiality assessment in
Q4’23 with key shareholders to identify, categorize, and prioritize
material environmental, social, and governance matters. The Company
expects to use the results of the assessment to further develop and
guide the organization’s sustainability strategy as we advance
toward operations at Carolina Lithium and Tennessee Lithium.
Conference Call Information
Date:
Thursday, February 22, 2024
Time:
4:30 pm Eastern Standard Time
Dial-in (Toll Free):
1 (800) 715-9871
Dial-in (Toll):
1 (646) 307-1963
Conference ID:
6860456
Participant URL:
https://events.q4inc.com/attendee/957370119
Piedmont’s earnings presentation and supporting material are
available at: https://piedmontlithium.com/investors-overview/.
About Piedmont
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 lithium (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). These
geographically diversified operations will enable us to play a
pivotal role in supporting America’s move toward energy
independence and the electrification of transportation and energy
storage.
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 and production activities of
Sayona Mining, Atlantic Lithium, and Piedmont; current plans for
Piedmont’s mineral and chemical processing projects; Piedmont’s
potential acquisition of an ownership interest in Ewoyaa; and
strategy. 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, and (xiv) 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.
PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per share
amounts)
Three Months Ended
December 31,
Years Ended December
31,
2023
2022
2023
2022
Revenue
$
(7,310
)
$
—
$
39,817
$
—
Costs of sales
10,775
—
34,138
—
Gross profit
(18,085
)
—
5,679
—
Exploration costs
261
454
1,929
1,939
Selling, general and administrative
expenses
11,526
9,250
43,319
29,449
Total operating expenses
11,787
9,704
45,248
31,388
Income (loss) from equity method
investments
1,759
(1,804
)
194
(8,352
)
Loss from operations
(28,113
)
(11,508
)
(39,375
)
(39,740
)
Interest income
900
780
3,859
1,153
Interest expense
(5
)
(18
)
(39
)
(116
)
Loss from foreign currency exchange
(3
)
(28
)
(91
)
(88
)
Gain (loss) on dilution of equity method
investments
1,767
(412
)
16,975
28,955
Total other income
2,659
322
20,704
29,904
Loss before income taxes
(25,454
)
(11,186
)
(18,671
)
(9,836
)
Income tax expense (benefit)
(64
)
(282
)
3,106
3,139
Net loss
$
(25,390
)
$
(10,904
)
$
(21,777
)
$
(12,975
)
Basic and diluted:
Loss per share
$
(1.32
)
$
(0.61
)
$
(1.14
)
$
(0.74
)
Weighted-average shares outstanding
19,209
17,966
19,033
17,518
PIEDMONT LITHIUM INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts)
December 31,
2023
December 31,
2022
Assets
Cash and cash equivalents
$
71,730
$
99,247
Accounts receivable
595
—
Other current assets
3,829
2,612
Total current assets
76,154
101,859
Property, plant and mine development,
net
127,086
71,541
Other non-current assets
30,353
18,873
Equity method investments
147,662
95,648
Total assets
381,255
287,921
Liabilities and Stockholders’
Equity
Accounts payable and accrued expenses
11,754
12,862
Current portion of long-term debt
149
425
Other current liabilities
29,463
124
Total current liabilities
41,366
13,411
Long-term debt, net of current portion
14
163
Operating lease liabilities, net of
current portion
1,091
1,177
Other non-current liabilities
431
—
Deferred tax liabilities
6,023
2,881
Total liabilities
48,925
17,632
Commitments and contingencies (Note
15)
Stockholders’ equity:
Common stock; $0.0001 par value, 100,000
shares authorized; 19,272 and 18,073 shares issued and outstanding
at December 31, 2023 and December 31, 2022, respectively
2
2
Additional paid-in capital
462,899
381,242
Accumulated deficit
(126,844
)
(105,658
)
Accumulated other comprehensive loss
(3,727
)
(5,297
)
Total stockholders’ equity
332,330
270,289
Total liabilities and stockholders’
equity
$
381,255
$
287,921
PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Years Ended
December 31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(21,777
)
$
(12,975
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation expense
9,516
3,490
Loss from equity method investments
(194
)
8,352
Gain on dilution of equity method
investments
(16,975
)
(28,955
)
Deferred taxes
3,106
3,139
Depreciation and amortization
272
74
Noncash lease expense
245
106
Loss on sale of property, plant and mine
development
—
12
Unrealized loss on investment
—
30
Changes in operating assets and
liabilities:
Accounts receivable
(595
)
—
Other assets
(1,021
)
(201
)
Operating lease liabilities
(220
)
(97
)
Accounts payable
(1,281
)
1,413
Accrued expenses and other current
liabilities
30,494
(837
)
Net cash provided by (used in) operating
activities
1,570
(26,449
)
Cash flows from investing
activities:
Capital expenditures
(56,723
)
(25,732
)
Advances to affiliates
(9,361
)
(13,006
)
Investments in equity method
investments
(33,239
)
(21,062
)
Net cash used in investing activities
(99,323
)
(59,800
)
Cash flows from financing
activities:
Proceeds from issuances of common stock,
net of issuance costs
71,084
122,059
Proceeds from exercise of stock
options
—
279
Principal payments on long-term debt
(426
)
(1,087
)
Payments to tax authorities for employee
stock-based compensation
(422
)
—
Net cash provided by financing
activities
70,236
121,251
Net (decrease) increase in cash
(27,517
)
35,002
Cash and cash equivalents at beginning of
period
99,247
64,245
Cash and cash equivalents at end of
period
$
71,730
$
99,247
Non-GAAP Financial Measures
The following information provides definitions and
reconciliations of certain non-GAAP financial measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP. The non-GAAP financial measures presented do
not have any standard meaning prescribed by GAAP and may differ
from similarly-titled measures used by other companies. However, we
present these measures in this press release because we believe
these non-GAAP financial measures provide useful means of
evaluating and understanding how our management evaluates our
financial condition and results of operations.
The following are non-GAAP financial measures for Piedmont:
Adjusted net income (loss) is defined as net income
(loss) plus or minus the gain or loss from gain on dilution of
equity method investments, gain or loss from foreign currency
exchange, and certain other adjustments we believe are not
reflective of our ongoing operations and performance.
Adjusted diluted earnings per share (or adjusted diluted
EPS) is defined as diluted EPS before gain on dilution of
equity method investments, gain or loss from foreign currency
exchange, and certain other costs we believe are not reflective of
our ongoing operations and performance. Any references to adjusted
EPS are to adjusted diluted EPS.
EBITDA is defined as net income before interest expenses,
income tax expense, and depreciation.
Adjusted EBITDA is defined as EBITDA plus or minus the
gain or loss from gain on dilution of equity method investments,
gain or loss from foreign currency exchange, and certain other
adjustments we believe are not reflective of our ongoing operations
and performance.
Adjusted EBITDA margin is adjusted EBITDA as a percentage
of revenue.
Below are reconciliations of non-GAAP financial measures on a
consolidated basis for adjusted net income (loss), adjusted diluted
EPS, EBITDA, and adjusted EBITDA.
Adjusted Net Loss and Adjusted Diluted EPS
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
(in thousands, except per share
amounts)
Diluted EPS
Diluted EPS
Net loss
$
(25,390
)
$
(1.32
)
$
(10,904
)
$
(0.61
)
(Gain) loss on dilution of equity method
investments(1)
(1,767
)
(0.09
)
412
0.02
Impairment of equity method
investment(2)
2,242
0.12
—
—
Loss from foreign currency exchange(3)
3
—
28
—
Other costs(4)
1,359
0.07
283
0.02
Tax effect of adjustments(5)
(109
)
(0.01
)
—
—
Adjusted net loss
$
(23,662
)
$
(1.23
)
$
(10,181
)
$
(0.57
)
_____________________________________ (1)
Gain on dilution of equity method
investments in the three months ended December 31, 2023 represents
a noncash gain recognized primarily due to Piedmont electing not to
participate in Sayona Mining’s share issuances. These shares were
issued at a greater value than the carrying value of our ownership
interest and as a result our interest in Sayona Mining was diluted
and reduced. Loss on dilution of equity method investments in the
three months ended December 31, 2022 represents a noncash loss
recognized due to Atlantic Lithium’s employee stock option
exercises. These shares were issued at a lower value than the
carrying value of our ownership interest and as a result our
interest in Atlantic Lithium was diluted and reduced. These gains
(losses) are reported on a one-quarter lag.
(2)
Impairment of equity method investment
represents the difference between the carrying value, which
includes $46.3 million in accumulated gains on dilution, and fair
value of Sayona Mining as of December 31, 2023.
(3)
Loss from foreign currency exchange
relates to currency fluctuations in our foreign bank accounts
denominated in Canadian dollars and Australian dollars and
marketable securities denominated in Australian dollars.
(4)
Other costs include legal and
transactional costs associated with the Department of Energy loan
and grant initiatives and costs related to certain significant
strategic transactions.
(5)
No income tax impacts have been given to
any items that were recorded in jurisdictions with full valuation
allowances.
Year Ended December 31,
2023
Year Ended December 31,
2022
(in thousands, except per share
amounts)
Diluted EPS
Diluted EPS
Net loss
$
(21,777
)
$
(1.14
)
$
(12,975
)
$
(0.74
)
Gain on dilution of equity method
investments(1)
(16,975
)
(0.89
)
(28,955
)
(1.65
)
Impairment of equity method
investment(2)
2,242
0.12
—
—
Loss from foreign currency exchange(3)
91
—
88
0.01
Other costs(4)
1,800
0.09
824
0.05
Tax effect of adjustments(5)
3,340
0.18
3,422
0.20
Adjusted net loss
$
(31,279
)
$
(1.64
)
$
(37,596
)
$
(2.15
)
___________________________ (1)
Gain on dilution of equity method
investments represents a noncash gain recognized due primarily to
Piedmont electing not to participate in Sayona Mining’s share
issuances and is reported on a one-quarter lag. These shares were
issued at a greater value than the carrying value of our ownership
interest and as a result our interest in Sayona Mining was diluted
and reduced.
(2)
Impairment of equity method investment
represents the difference between the carrying value, which
includes $46.3 million in accumulated gains on dilution, and fair
value of Sayona Mining as of December 31, 2023.
(3)
Loss from foreign currency exchange
relates to currency fluctuations in our foreign bank accounts
denominated in Canadian dollars and Australian dollars and
marketable securities denominated in Australian dollars.
(4)
Other costs include severance costs, legal
and transactional costs associated with the Department of Energy
loan and grant initiatives and costs related to certain significant
strategic transactions.
(5)
No income tax impacts have been given to
any items that were recorded in jurisdictions with full valuation
allowances.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
Three Months Ended
December 31,
Years Ended December
31,
(in thousands)
2023
2022
2023
2022
Net loss
$
(25,390
)
$
(10,904
)
$
(21,777
)
$
(12,975
)
Interest income, net
(895
)
(762
)
(3,820
)
(1,037
)
Income tax expense (benefit)
(64
)
(282
)
3,106
3,139
Depreciation and amortization
67
42
241
74
EBITDA
(26,282
)
(11,906
)
(22,250
)
(10,799
)
(Gain) loss on dilution of equity method
investments(1)
(1,767
)
412
(16,975
)
(28,955
)
Impairment of equity method
investment(2)
2,242
—
2,242
—
Loss from foreign currency exchange(3)
3
28
91
88
Other Costs(4)
1,359
283
1,800
824
Adjusted EBITDA
$
(24,445
)
$
(11,183
)
$
(35,092
)
$
(38,842
)
Adjusted EBITDA margin(5)
NM
NM
____________________________________ (1)
Gain on dilution of equity method
investments in the three months ended December 31, 2023 represents
a noncash gain recognized primarily due to Piedmont electing not to
participate in Sayona Mining’s share issuances. These shares were
issued at a greater value than the carrying value of our ownership
interest and as a result our interest in Sayona Mining was diluted
and reduced. Loss on dilution of equity method investments in the
three months ended December 31, 2022 represents a noncash loss
recognized due to Atlantic Lithium’s employee stock option
exercises. These shares were issued at a lower value than the
carrying value of our ownership interest and as a result our
interest in Atlantic Lithium was diluted and reduced. These gains
(losses) are reported on a one-quarter lag.
(2)
Impairment of equity method investment
represents the difference between the carrying value, which
includes $46.3 million in accumulated gains on dilution, and fair
value of Sayona Mining as of December 31, 2023
(3)
Loss from foreign currency exchange
relates to currency fluctuations in our foreign bank accounts
denominated in Canadian dollars and Australian dollars and
marketable securities denominated in Australian dollars.
(4)
Other costs include severance costs, legal
and transactional costs associated with the Department of Energy
loan and grant initiatives and costs related to certain significant
strategic transactions.
(5)
Adjusted EBITDA margin is defined as
adjusted EBITDA divided by revenue.
NM - Not meaningful
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240222169339/en/
Erin Sanders SVP, Corporate Communications & Investor
Relations T: +1 704 575 2549 E: esanders@piedmontlithium.com
Piedmont Lithium (NASDAQ:PLL)
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