Piedmont Lithium Continues Strong Production Gains Amid Regulatory Progress
Piedmont Lithium, a major North American lithium supplier, reported continued production growth in the third quarter of 2024, with measures in place to support its presence in the global lithium market. The company, based in Belmont, North Carolina, is advancing its key projects despite challenges in the lithium sector.
In the third quarter, Piedmont, alongside joint owner Sayona Mining, set new records for production and operational efficiency at North American Lithium (NAL), achieving a quarterly output of around 52,100 dry metric tonnes (dmt) of spodumene concentrate. Mill utilization also reached a peak of 91%, with lithium recovery rates stable at 67%. Enhanced operational efficiency led to a 15% reduction in unit operating costs, bringing costs down to $729 per tonne.
Piedmont shipped approximately 31,500 dmt of spodumene concentrate in Q3, resulting in a revenue of $27.7 million. The average realized price was $878 per tonne, reflecting competitive pricing in the current market. The company projects shipments between 41,000 and 55,000 dmt in Q4, which could bring the total for 2024 to approximately 116,000 dmt.
The company also highlighted the progress of its Carolina Lithium Project, set to benefit from the U.S. Department of the Treasury's recent rule on manufacturing credits under the Inflation Reduction Act. With permits in progress, including one for producing up to 60,000 tonnes of lithium hydroxide annually, the project is advancing steadily.
In Ghana, the Ewoyaa Lithium Project has received both an environmental permit and a Mine Operating Permit, with further regulatory and financial developments underway.
As of September 30, Piedmont reported $64.4 million in cash reserves and arranged a non-dilutive $25 million working capital facility with a trading partner to enhance liquidity. The company also noted a recent increase in the mineral resource estimate for NAL, indicating potential for future expansion.
