Piedmont Lithium provides business update

Piedmont Lithium provided an update on key business and portfolio activities. Ramp up continues on target at North American Lithium, Piedmont’s joint-venture mining operation in Quebec. NAL produced 34,237 dry metric tons of spodumene concentrate in Q4’23, at an average grade of 5.5% Li2O, representing a 9% increase in production from the prior quarter. Unit mining costs are expected to improve once operations have moved past the old mining works. Piedmont expects to begin deliveries under its long-term contracts in 2024 and reduce reliance on volatile spot market sales. Piedmont and its partner, Atlantic Lithium, continue to advance development of the Ewoyaa project in Ghana. The Minerals Income Investment Fund of Ghana completed a $5M investment in Atlantic and discussions continue regarding MIIF’s potential investment of $27.9M directly into Ewoyaa for a 6% project stake, which would reduce funding requirements for Piedmont and the project’s other partners. Construction at Ewoyaa is targeted to commence in 2025 following receipt of required permits and approvals, which are expected later in 2024. Piedmont expects to submit a formal application for the Ewoyaa project debt financing later this quarter to the U.S. International Development Finance Corporation. Piedmont’s projects in North Carolina and Tennessee are central to its long-term strategy. In the event Piedmont receives a positive decision on the Carolina state mining permit, the Company would prepare for local project rezoning and permits while continuing to work with state agencies in North Carolina to obtain final air and industrial discharge permits. Piedmont finished 2023 with $72M in cash and currently holds approximately $38M in marketable securities. The company intends to reduce its capital spending in 2024. Expects to complete the majority of its cost savings initiatives by the end of Q1’24 and is targeting approximately $10M in annual run rate savings.