BELMONT, N.C., March 29, 2022 – Piedmont Lithium Inc. (“Piedmont” or the “Company”) (NASDAQ: PLL; ASX: PLL), a leading, diversified developer of lithium resources required to enable the U.S. electric vehicle supply chain, today announced that Piedmont’s partner, Atlantic Lithium (AIM: ALL), recently announced completion of a Mineral Resource estimate update for the Ewoyaa Project in Cape Coast, Ghana totaling 30.1 million metric tonnes @ 1.26% Li2O. Piedmont has an earn-in right to a 50% interest in Atlantic Lithium’s Ghanaian projects including Ewoyaa and the Company holds an equity interest of approximately 10% in Atlantic Lithium. The updated Mineral Resource estimate, including 20.5 Mt @ 1.29% Li2O of Indicated Resources, was reported in accordance with JORC Code (2012) standards.
“We’re very pleased with the reported increase in Mineral Resources for the Ewoyaa Project, notably the increase in Mineral Resources in the Indicated category” said Piedmont’s Chief Operating Officer, Patrick Brindle. Mr. Brindle added, “The Ewoyaa Project is one of the best located spodumene projects in Africa, and its development is fundamental to our growth strategy as an important source of spodumene concentrate for our LHP-2 Project. We look forward to Atlantic Lithium’s completion of a prefeasibility study for the Ewoyaa Project, which will both increase the level of engineering definition for the Project as well as provide important data needed to advance regulatory approvals for the Project.”
The statements below were prepared by, and made by, Atlantic Lithium. The following disclosures are not statements of Piedmont and have not been independently verified by Piedmont. Atlantic Lithium is not subject to U.S. reporting requirements or obligations, and investors are cautioned not to put undue reliance on these statements.
Atlantic Lithium’s original announcement can be found here.
About Piedmont Lithium
Piedmont Lithium (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. The centerpiece of our operations, Carolina Lithium, is located in the renowned Carolina Tin-Spodumene Belt of North Carolina. Combining our U.S. assets with equally strategic and in-demand mineral resources, and minority equity investments in companies that own production assets in Quebec and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be the most strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our diversified operations will enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. For more information, 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, and construction activities of Atlantic Lithium and Piedmont; current plans for Piedmont’s mineral and chemical processing projects; strategy; 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 or Atlantic Lithium will be unable to commercially extract mineral deposits, (ii) that Piedmont’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 Quebec and 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 presentation and actual events, results, performance, and achievements could vary significantly from the forward-looking statements, projections and estimates presented in this presentation. 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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are terms defined by the U.S. Securities and Exchange Commission (“SEC”) in Regulation S-K, Item 1300 (“S-K 1300”) as well as the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and the Canada Securities Administrators National Instrument 43-101 Standards for Disclosure for Mineral Projects (“NI 43-101”). In Atlantic Lithium’s announcement, it indicates that it has prepared resources information in accordance with the standards set forth in the 2012 Edition of the JORC Code. Such standards differ from the requirements of U.S. securities laws that would apply if Atlantic Lithium were a reporting company in the United States. Therefore, the mineral resources reported by Atlantic Lithium are not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder. U.S. investors are urged to consider closely the context and nature of Atlantic Lithium’s disclosures in its public communications, as well as the disclosure in Piedmont’s Form 10-KT, a copy of which may be obtained from Piedmont or from the EDGAR system on the SEC’s website at http://www.sec.gov/.
Piedmont Lithium Limited (NASDAQ:PLL)(Piedmont or Company) is pleased to announce that President & CEO Keith Phillips will deliver an investor presentation at the NWR Near Term Producers Conference to be held on Tuesday, 29 March 2022 (Wednesday, 30 March 2022 AEDT).
Presentation time: 7:50 p.m. EST Tuesday, 29 March 2022 / 10:50 a.m. AEDT Wednesday, 30 March 2022
NEW YORK, March 24, 2022 – Piedmont Lithium Inc. (“Piedmont” or the “Company”) (Nasdaq:PLL; ASX:PLL) today announced the closing of its previously announced underwritten public offering of 2.01 million shares (“shares”) of its common stock, which includes the full exercise of the underwriters’ option to purchase 262,500 shares (“Public Offering”). The aggregate gross proceeds of the Public Offering, before underwriting discounts and commissions, totaled $130.8 million.
Piedmont intends to use the net proceeds from the offering to fund the Company’s share of the capital required to restart the operations at North American Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition. Additionally, the net proceeds may be used to fund possible strategic initiatives and for general corporate purposes.
J.P. Morgan and Evercore ISI acted as joint book-runners for the Public Offering. Canaccord Genuity, B. Riley Securities, BTIG, LLC, Clarksons Platou Securities, Inc., D.A. Davidson & Co., Jett Capital Advisors LLC, Loop Capital Markets, Roth Capital Partners, ThinkEquity and Tuohy Brothers acted as co-managers for the Public Offering.
The Public Offering was made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). A final prospectus supplement related to the Public Offering has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov and on the ASX website. Copies of the final prospectus supplement and the accompanying prospectus relating to the Public Offering may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by e-mail at prospectus-eq_fi@jpmchase.com; and Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by e-mail at ecm.prospectus@evercore.com.
This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “expect,” “estimate,” “may,” “might,” “will,” “could,” “can,” “shall,” “should,” “would,” “leading,” “ objective,” “intend,” “contemplate,” “design,” “predict,” “potential,” “plan,” “target” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to: the anticipated use of the net proceeds of the Public Offering; the fact that the Company’s management will have broad discretion in the use of the proceeds from the sale of the shares; the risk that anticipated plans, development, production, revenues or costs are not attained; the Company’s operations being further disrupted and the Company’s financial results being adversely affected by public health threats, including the novel coronavirus pandemic; the Company’s limited operating history in the lithium industry; the Company’s status as a development stage company, including the Company’s ability to identify lithium mineralization and achieve commercial lithium mining; mining, exploration and mine construction, if warranted, on the Company’s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future; completing required permitting activities required to commence processing operations for the LHP-2 Project; the Company’s ability to achieve and maintain profitability and to develop positive cash flows from the Company’s processing activities; the Company’s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves; investment risk and operational costs associated with the Company’s exploration activities; the Company’s ability to develop and achieve production on the Company’s properties; the Company’s ability to enter into and deliver products under supply agreements; the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries; the Company’s ability to access capital and the financial markets; recruiting, training and developing employees; possible defects in title of the Company’s properties; compliance with government regulations; environmental liabilities and reclamation costs; estimates of and volatility in lithium prices or demand for lithium; the Company’s common stock price and trading volume volatility; the development of an active trading market for the Company’s common stock; the Company’s failure to successfully execute its growth strategy, including any delays in the Company’s planned future growth; and other factors set forth in the Company’s most recent Transition Report on Form 10-KT and subsequent reports, as filed with the SEC.
All forward-looking statements reflect Piedmont’s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements.
About Piedmont Lithium
Piedmont Lithium 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. The centerpiece of our operations, located in the renowned Carolina Tin Spodumene Belt of North Carolina, when combined with equally strategic and in-demand mineral resources, and production assets in Quebec, and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our planned diversified operations should enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. As a member of organizations like the International Responsible Mining Association, and the Zero Emissions Transportation Association, we are committed to protecting and preserving our planet for future generations, and to making economic and social contributions to the communities we serve.
NEW YORK, March 22, 2022 – Piedmont Lithium Inc. (“Piedmont” or the “Company”) (Nasdaq:PLL; ASX:PLL) todayannounced the pricing of an upsized underwritten public offering of 1.75 million shares (“shares”) of its common stock (“Public Offering”), at a price per share to the public of $65.00, for aggregate gross proceeds of $113.75 million. Piedmont has granted the underwriters a 30-day option to purchase up to an additional 262,500 shares at the issue price of the Public Offering. The Public Offering is expected to close on March 24, 2022, subject to customary closing conditions.
Piedmont intends to use the net proceeds from the offering to fund the Company’s share of the capital required to restart the operations at North American Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition. Additionally, the net proceeds may be used to fund possible strategic initiatives and for general corporate purposes.
J.P. Morgan and Evercore ISI are acting as joint book-runners for the Public Offering. Canaccord Genuity, B. Riley Securities, BTIG, LLC, Clarksons Platou Securities, Inc., D.A. Davidson & Co., Jett Capital Advisors LLC, Loop Capital Markets, Roth Capital Partners, ThinkEquity and Tuohy Brothers are acting as co-managers for the Public Offering.
The Public Offering is being made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). A final prospectus supplement related to the Public Offering will be filed with the SEC and made available on the SEC’s website at http://www.sec.gov and on the ASX website. Copies of the final prospectus supplement, when available, and the accompanying prospectus relating to the Public Offering may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by e-mail at prospectus-eq_fi@jpmchase.com; and Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by e-mail at ecm.prospectus@evercore.com.
This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “expect,” “estimate,” “may,” “might,” “will,” “could,” “can,” “shall,” “should,” “would,” “leading,” “ objective,” “intend,” “contemplate,” “design,” “predict,” “potential,” “plan,” “target” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to: risks related to whether the Company will close the Public Offering on the expected terms, or at all; the anticipated use of the net proceeds of the Public Offering; the fact that the Company’s management will have broad discretion in the use of the proceeds from any sale of the shares; the risk that anticipated plans, development, production, revenues or costs are not attained; the Company’s operations being further disrupted and the Company’s financial results being adversely affected by public health threats, including the novel coronavirus pandemic; the Company’s limited operating history in the lithium industry; the Company’s status as a development stage company, including the Company’s ability to identify lithium mineralization and achieve commercial lithium mining; mining, exploration and mine construction, if warranted, on the Company’s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future; completing required permitting activities required to commence processing operations for the LHP-2 Project; the Company’s ability to achieve and maintain profitability and to develop positive cash flows from the Company’s processing activities; the Company’s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves; investment risk and operational costs associated with the Company’s exploration activities; the Company’s ability to develop and achieve production on the Company’s properties; the Company’s ability to enter into and deliver products under supply agreements; the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries; the Company’s ability to access capital and the financial markets; recruiting, training and developing employees; possible defects in title of the Company’s properties; compliance with government regulations; environmental liabilities and reclamation costs; estimates of and volatility in lithium prices or demand for lithium; the Company’s common stock price and trading volume volatility; the development of an active trading market for the Company’s common stock; the Company’s failure to successfully execute its growth strategy, including any delays in the Company’s planned future growth; and other factors set forth in the Company’s most recent Transition Report on Form 10-KT and subsequent reports, as filed with the SEC.
All forward-looking statements reflect Piedmont’s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements.
About Piedmont Lithium
Piedmont Lithium 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. The centerpiece of our operations, located in the renowned Carolina Tin Spodumene Belt of North Carolina, when combined with equally strategic and in-demand mineral resources, and production assets in Quebec, and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our planned diversified operations should enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. As a member of organizations like the International Responsible Mining Association, and the Zero Emissions Transportation Association, we are committed to protecting and preserving our planet for future generations, and to making economic and social contributions to the communities we serve.
NEW YORK, March 21, 2022 – Piedmont Lithium Inc. (“Piedmont” or the “Company”) (Nasdaq:PLL; ASX:PLL) todayannounced that it plans to conduct a public offering, subject to market and other conditions, of 1.5 million shares (“shares”) of its common stock (“Public Offering”).
Piedmont intends to use the net proceeds from the offering to fund the Company’s share of the capital required to restart the operations at North American Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition. Additionally, the net proceeds may be used to fund possible strategic initiatives and for general corporate purposes.
J.P. Morgan and Evercore ISI are acting as joint book-runners and lead underwriters for the Public Offering. Piedmont intends to grant the underwriters a 30-day option to purchase up to 225,000 additional shares at the issue price of the Public Offering.
The Public Offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission (the “SEC”). A preliminary prospectus supplement related to the offering of the shares has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov and on the ASX website. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the Public Offering may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by e-mail at prospectus-eq_fi@jpmchase.com; and Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200 or by e-mail at ecm.prospectus@evercore.com.
This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “expect,” “estimate,” “may,” “might,” “will,” “could,” “can,” “shall,” “should,” “would,” “leading,” “ objective,” “intend,” “contemplate,” “design,” “predict,” “potential,” “plan,” “target” and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to: risks related to whether the Company will offer the shares or consummate the offering of the shares on the expected terms, or at all; the anticipated use of the net proceeds of the offering; the fact that the Company’s management will have broad discretion in the use of the proceeds from any sale of the shares; the risk that anticipated plans, development, production, revenues or costs are not attained; the Company’s operations being further disrupted and the Company’s financial results being adversely affected by public health threats, including the novel coronavirus pandemic; the Company’s limited operating history in the lithium industry; Company’s status as a development stage company, including the Company’s ability to identify lithium mineralization and achieve commercial lithium mining; mining, exploration and mine construction, if warranted, on the Company’s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future; completing required permitting activities required to commence processing operations for the LHP-2 Project; the Company’s ability to achieve and maintain profitability and to develop positive cash flows from the Company’s processing activities; the Company’s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves; investment risk and operational costs associated with the Company’s exploration activities; the Company’s ability to develop and achieve production on the Company’s properties; the Company’s ability to enter into and deliver products under supply agreements; the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries; the Company’s ability to access capital and the financial markets; recruiting, training and developing employees; possible defects in title of the Company’s properties; compliance with government regulations; environmental liabilities and reclamation costs; estimates of and volatility in lithium prices or demand for lithium; the Company’s common stock price and trading volume volatility; the development of an active trading market for the Company’s common stock; the Company’s failure to successfully execute our growth strategy, including any delays in the Company’s planned future growth; and other factors set forth in the Company’s most recent Transition Report on Form 10-KT and subsequent reports, as filed with the U.S. Securities and Exchange Commission.
All forward-looking statements reflect Piedmont’s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements.
About Piedmont Lithium
Piedmont Lithium 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. The centerpiece of our operations, located in the renowned Carolina Tin Spodumene Belt of North Carolina, when combined with equally strategic and in-demand mineral resources, and production assets in Quebec, and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our planned diversified operations should enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. As a member of organizations like the International Responsible Mining Association, and the Zero Emissions Transportation Association, we are committed to protecting and preserving our planet for future generations, and to making economic and social contributions to the communities we serve.
Presentation includes recent Preliminary Economic Assessment of potential second hydroxide plant and projected production timelines for projects in Quebec and Ghana
BELMONT, N.C., March 15, 2022 (Business Wire) – Piedmont Lithium Inc., (“Piedmont” or the “Company”) (NASDAQ: PLL; ASX: PLL), a leading developer of lithium hydroxide production to enable the North American electric vehicle supply chain, today released a new Corporate Overview Presentation. The updated overview includes recent information addressing overall market conditions, lithium supply and demand projections from industry analysts, and pricing trends. The presentation also provides a detailed overview and update on Piedmont’s multiple resources in North Carolina, Quebec, and Ghana. In addition, information from the recently released Preliminary Economic Assessment (PEA) of a second lithium hydroxide plant has now also been included, as well as estimated production timelines related to a restart of the North American Lithium asset in Quebec, and spodumene concentrate production from the Ewoyaa project with Atlantic Lithium in Ghana.
“While there remains a focus on our proposed flagship Carolina Lithium Project in Gaston County, N.C., we’ve been expanding our portfolio of mineral resources, production capacity, and upside financial exposure through assets and strategic investments in Quebec and Ghana,” commented Piedmont Lithium President and CEO, Keith Phillips. “The planned 2023 restart of North American Lithium in conjunction with our partner, Sayona Mining, and the potential for spodumene production at Ewoyaa in partnership with Atlantic Lithium as early as 2024, creates an attractive timeline for potential revenue generation that could precede output at our proposed Carolina Lithium project. The steady drumbeat of expansion announcements from OEM’s and battery makers alike, continues to drive the need for additional lithium hydroxide supply to support the U.S. market. We see expanding our access to resources, plus looking at additional hydroxide production capacity through a second potential plant, as a way of delivering security of supply to potential customers and returning value to shareholders in the process,” added Phillips.
Piedmont Lithium 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. The centerpiece of our operations, located in the renowned Carolina Tin Spodumene Belt of North Carolina, when combined with equally strategic and in demand mineral resources, and production assets in Quebec, and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our planned diversified operations should enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. As a member of organizations like the International Responsible Mining Association, and the Zero Emissions Transportation Association, we are committed to protecting and preserving our planet for future generations, and to making economic and social contributions to the communities we serve. For more information, www.piedmontlithium.com.
Forward Looking Statements
This announcement includes forward-looking statements within the meaning of applicable securities laws, including statements about LHP-2, the potential selection of a site for such plant, timing and expectations around any development and production of the plant and estimates and assumptions around permitting, revenues and costs of the plant. These forward-looking statements are based on Piedmont’s expectations and beliefs concerning future events. Such forward-looking statements concern Piedmont’s anticipated results and progress of its operations in future periods, planned exploration and, if warranted, development of its properties and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “may,” “might,” “will,” “could,” “can,” “shall,” “should,” “would,” “leading,” “objective,” “intend,” “contemplate,” “design,” “predict,” “potential,” “plan,” “target” and similar expressions are generally intended to identify forward-looking statements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to:
the risk that anticipated plans, development, production, revenues or costs are not attained;
Piedmont’s operations being further disrupted and Piedmont’s financial results being adversely affected by public health threats, including the novel coronavirus pandemic;
Piedmont’s limited operating history in the lithium industry;
Piedmont’s status as a development stage company, including Piedmont’s ability to identify lithium mineralization and achieve commercial lithium mining;
mining, exploration and mine construction, if warranted, on Piedmont’s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future;
completing required permitting activities required to commence processing operations for the LHP-2 Project;
Piedmont’s ability to achieve and maintain profitability and to develop positive cash flows from Piedmont’s processing activities;
Piedmont’s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves;
investment risk and operational costs associated with Piedmont’s exploration activities;
Piedmont’s ability to develop and achieve production on Piedmont’s properties;
Piedmont’s ability to enter into and deliver products under supply agreements;
the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries;
Piedmont’s ability to access capital and the financial markets;
recruiting, training and developing employees;
possible defects in title of Piedmont’s properties;
compliance with government regulations;
environmental liabilities and reclamation costs;
estimates of and volatility in lithium prices or demand for lithium;
Piedmont’s common stock price and trading volume volatility;
the development of an active trading market for Piedmont’s common stock;
Piedmont’s failure to successfully execute our growth strategy, including any delays in Piedmont’s planned future growth; and
other factors set forth in Piedmont’s most recent Annual Report on Form 10-K and subsequent reports, as filed with the U.S. Securities and Exchange Commission.
All forward-looking statements reflect Piedmont’s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements.
Study Demonstrates Positive Economics for a Second Plant Supplied withSpodumene Concentrate from Existing Partnerships
Piedmont Lithium Inc. (“Piedmont” or the “Company”) is pleased to report the results of a Preliminary Economic Assessment (“PEA” or “Study”) for a proposed merchant lithium hydroxide plant (“LHP-2”) to expand Piedmont’s planned U.S. manufacturing capacity to 60,000 t/y of lithium hydroxide. The LHP-2 PEA results demonstrate the potential for Piedmont Lithium to expand its lithium hydroxide manufacturing business using spodumene concentrate from market sources, including under existing offtake agreements with Sayona Quebec and Atlantic Lithium.
“2021 was a transformative year for electrification in the United States,” said Piedmont President and CEO Keith Phillips. “Current and forecasted battery manufacturing capacity now exceeds 500 gigawatt-hours (“GWh”) with public announcements of over $25 billion in capital investments to occur by 2025. The potential lithium volume these battery plants will require reinforces the importance of developing a domestic lithium supply chain and solidifies our decision to aggressively evaluate and pursue expansion opportunities for a second lithium hydroxide plant. The planned 2023 restart of North American Lithium in conjunction with our partner, Sayona Mining, and potential for spodumene production at Ewoyaa in partnership with Atlantic Lithium as early as 2024 ensures that our LHP-2 operations will have dedicated material supply from day one. With prevailing spot lithium prices at approximately triple the fixed pricing assumptions used in the PEA, Piedmont has substantial leverage relative to higher lithium prices across our entire portfolio of projects,” commented Phillips.
The planned LHP-2 project economics are shown alongside the Company’s flagship Carolina Lithium Project in the table below. Both projects are shown using fixed prices of $22,000 per tonne LiOH and $1,200 per tonne for spodumene concentrate. The economic model for LHP-2 was developed based on common physical and operating characteristics of multiple potential plant locations currently under evaluation for final site selection. LHP-2 development remains subject to, among other things, a final site selection and financing. Piedmont plans to advance Carolina Lithium, LHP-2, Ewoyaa, and NAL restart on the earliest practical timelines, subject to permitting and regulatory approvals for each project.
Table 1: Project Summary Outcomes
Unit
LHP-2
Carolina Lithium[1]
Operation life
years
30
30
Steady state annual lithium hydroxide production
t/y
30,000
30,000
Total initial capital cost
$mm
$572
$988
After tax Net Present Value @ 8% discount rate
$mm
$2,248
$2,843
After tax Internal Rate of Return
%
33%
34%
Steady-state LiOH production all in sustaining costs
$/t
$10,630
$4,377
Average annual steady state EBITDA
$mm/y
$346
$592
Average annual steady state after-tax cash flow
$mm/y
$269
$385
“We are very pleased with the results of the Preliminary Economic Assessment for our second planned U.S. lithium hydroxide plant. The Project’s economics are outstanding using a fixed price deck that is at a 66% discount to prevailing spot prices. With many analysts projecting lithium shortages to grow into the 2030s, the Project offers substantial leverage relative to possible higher lithium prices.
We aspire to be America’s leading producer of lithium hydroxide, and at 60,000 tonnes per year Piedmont’s planned capacity would be approximately quadruple the entire domestic installed base today, positioning us to be a critical supplier to the U.S. supply chain. With long-term supply agreements in place with our partners Atlantic Lithium and Sayona Mining, we have locked in the raw material we require for this expansion, enabling us to control our own destiny while capturing the economics of the integrated production process.
Our focus for the remainder of 2022 turns to ‘execution,’ with four major projects under development. Along with our partners, we are targeting first spodumene concentrate production at North American Lithium in 2023, and at the Ewoyaa Project in Ghana in 2024. U.S. lithium hydroxide production will follow, with our integrated Carolina Lithium Project and LHP-2 to be advanced on the earliest practical timelines. Lithium markets are strong, and we are fortunate to possess a strong project pipeline to capitalize on the generational opportunity presented by the electrification of the vehicle business.
Keith D. Phillips, President and Chief Executive Officer
This PEA of Piedmont Lithium’s proposed LHP-2 is based on a 30,000 t/y lithium hydroxide conversion facility that features Metso:Outotec conversion technology and includes spodumene concentrate receiving/short term storage facilities, reagent receiving and storage facilities, process facilities, and site infrastructure. The LHP-2 project contemplates a 30-year operation. The ramp-up period for LHP-2 operations is assumed to achieve nameplate capacity, including both overall production and battery quality production, after a 12-month ramp-up period. Table 2 provides a summary of production and cost figures for the LHP-2 project. All values are reported in U.S. dollars. The PEA economics for LHP-2 as presented exclude the potential returns related to profits from spodumene concentrate sales from Sayona or Atlantic Lithium attributable to Piedmont for our project-level and parent company investments in those companies.
Table 2: Project Summary Outcomes
Unit
Estimated Value
Annual Production
Operation life
years
30
Steady state annual lithium hydroxide production
t/y
30,000
Average annual spodumene concentrate (SC6) purchases
t/y
196,000
Operating and Capital Costs
Steady-state LiOH production all in sustaining costs (“AISC”)
$/t
$10,630
Development capital
$mm
$480
Other owner’s costs
$mm
$28
Contingency
$mm
$64
Total initial capital cost
$mm
$572
Sustaining and deferred capital
$mm
$163
Working capital
$mm
$128
Financial Performance
After tax Net Present Value (“NPV”) @ 8% discount rate
$mm
$2,248
After tax Internal Rate of Return (“IRR”)
%
33%
Average annual steady state EBITDA
$mm/y
$346
Average annual steady state after-tax cash flow
$mm/y
$269
Payback from start of operations
years
3.1
Study Consultants
This PEA combines information and assumptions provided by a range of independent consultants, including the following consultants who have contributed to key components of the Study.
Table 3: PEA Study Consultants
Consultant
Scope of Work
Primero Group Americas Inc.
Lithium hydroxide plant design and overall Study integration
The Study assumes that Piedmont Lithium’s LHP-2 will be located on one of several sites under consideration that share similar characteristics with respect to acreage, infrastructure, rail access, proximity to transportation routes, potential customers, and available workforce. While a final site has not been selected, co-locating LHP-2 at the existing Carolina Lithium Project site in Gaston County, NC is not being considered.
This PEA assumes that LHP-2 will operate for 30 years and produce 30,000 t/y of lithium hydroxide at steady state from approximately 196,000 t/y of SC6 delivered from third party spodumene concentrate purchases. To support LHP-2 operations, our strategy is to work with Atlantic Lithium to develop the Ewoyaa Project in Ghana, where Piedmont Lithium holds offtake rights to 50% of spodumene concentrate production on a life-of-mine basis. The Ewoyaa Project is subject of a Scoping Study published by Atlantic Lithium with a Production Target of 300,000 t/y of SC6.
In addition, SC6 may be purchased from Sayona Quebec, where Piedmont Lithium holds offtake rights for the greater of 113,000 t/y, or 50% of SC6 production on a life-of-mine basis, from the North American Lithium and Authier Projects. As of March 2022, North American Lithium is the subject of active restart efforts with a forecasted restart in 2023.
The financial results reported in this announcement do not capture the potential income or associated investment requirements from Piedmont’s equity interests in Sayona Quebec or Atlantic Lithium.
Process Design
In 2021, Piedmont engaged Metso:Outotec to undertake pilot plant testwork using their proprietary alkaline pressure leach process for production of lithium hydroxide monohydrate. The spodumene concentrate sample used was produced during concentrator pilot plant operation in 2020 from samples collected from the Carolina Lithium Project. The spodumene concentrate was calcined by Metso:Outotec at their laboratory in Oberursel, Germany. The calcined concentrate was then sent to Metso:Outotec Research Center in Pori, Finland for hydrometallurgical testing.
This PEA assumes that the recovery and quality of lithium hydroxide monohydrate produced from third party spodumene concentrates, including Atlantic Lithium or North American Lithium, would be identical to the estimated grade and quality of lithium hydroxide monohydrate referenced in the Company’s Carolina Lithium Project Feasibility Study. Additional testwork in connection with this PEA was not undertaken.
The pilot plant flowsheet tested included: soda leaching, cold conversion, secondary conversion, ion exchange, and lithium hydroxide crystallization. The pilot plant operated for approximately 10 days. Roughly 100 kg of calcined spodumene concentrate was fed to the pilot plant. The average total lithium extraction achieved in soda leaching and cold conversion was 89% during the first 136 hours of operation. Process recycles were incorporated in the pilot plant with no significant accumulation of impurities in the process. First stage lithium hydroxide crystallization was operated continuously during the pilot plant. Second stage crystallization was operated in batches after the completion of the continuous pilot plant. Impurities levels in the final battery-quality lithium hydroxide monohydrate product were typically low with Al <10 ppm, Ca <10 ppm, Fe <20 ppm, K <10 ppm, and Si <40 ppm. All other metal impurities were below detection limits.
Based on the testwork completed, Metso:Outotec expects that 196,000 t/y of SC6 will be required to produce 30,000 t/y of battery quality lithium hydroxide. Based on Metso:Outotec’s estimate, this PEA study assumes a 91% lithium conversion rate through the lithium hydroxide conversion plant.
A preliminary integrated site plan and 3D model of a potential plant including lithium hydroxide manufacturing, rail siding and ancillary facilities was developed by Primero Group during the course of the study. Figure 2 shows an indicative site plan for the manufacturing facility on a generic site. The financial and operating model supports the capital cost estimate and could be used as the basis for subsequent stages of engineering related to a final LHP-2 location.
Infrastructure Each site being considered offers an attractive infrastructure location as related to major interstate access, rail, and ports, along with support services such as fabrication, maintenance, and technical service contractors. Temporary or permanent camp facilities will not be required as part of the LHP-2 project.
Logistics
Each considered location allows for spodumene concentrate to be delivered to LHP-2 for processing by rail, rail siding, or by truck from a port within 300 miles of the site. For spodumene concentrate pricing, the PEA assumes that Piedmont can buy SC6 at a market price on a CIF Port of Charleston, SC, basis plus an allowance of $35/t for inland transportation.
Permitting
Each site being considered is located on private land. The permitting timeline of the LHP-2 Project is assumed to be similar for each of the sites under consideration. The current development schedule assumes that a non-Title V air permit will be required for the project and that hydroxide conversion solid residue can be disposed of at an existing permitted facility that can receive non-hazardous solid waste.
Marketing
Lithium Market Outlook
Benchmark Mineral Intelligence (“Benchmark”) reports that total battery demand grew to nearly 400 GWh in 2021 translating to 357kt of lithium carbonate equivalent (“LCE”) demand in 2021, a growth of 59% over 2020 demand. Benchmark calculated total demand in 2021 to be 492kt on an LCE basis. Benchmark further expects the market to remain in a structural deficit (see Figure 3) for the foreseeable future as demand outpaces supply.
Figure 3 – Lithium supply demand forecast
Lithium prices have risen dramatically since Piedmont published the feasibility study for Carolina Lithium in December 2021, with current spot prices for battery-grade lithium hydroxide now exceeding $65,000/t and contract prices doubling from 2021 levels. Several market analysts have raised their pricing projections for lithium hydroxide (Table 4) over the medium-term.
Table 4: Price Forecasts for Battery-Grade Lithium Hydroxide ($/t)
Forecast
2022
2023
2024
2025
Benchmark Minerals
$20,600
$26,200
$25,200
$20,900
J.P. Morgan
$32,750
$33,500
$29,291
$24,248
Macquarie
$44,250
$33,500
$31,250
$26,750
Fixed prices of $22,000/t for lithium hydroxide and $1,200/t for spodumene concentrate for the life of the project have been assumed in this PEA. Figure 4 compares the pricing used in the study to historical pricing for lithium hydroxide and spodumene concentrate.
As shown in Figure 5 below North America is seeing considerable growth in battery plant capacity. Figure 6 below shows the corresponding lithium hydroxide demand for the announced U.S. battery plant capacity at full production.
Figure 5 –Current battery plants operating, under construction or announced in the United StatesFigure 6 –LiOH Demand for Select U.S. Giga-Factories
Market Strategy
Piedmont is focused on establishing strategic partnerships with customers for battery grade lithium hydroxide with an emphasis on a customer base which is focused on EV demand growth in North America and Europe. Piedmont will concentrate this effort on these growing EV supply chains, particularly in light of the growing commitments of battery manufacturing by groups such as Ford, General Motors, Stellantis, Toyota, LGES, SK Innovation, Samsung SDI, and others. Advanced discussions with prospective customers are ongoing.
Operating and Capital Costs
The lithium hydroxide conversion plant contemplated in this PEA is substantially identical to the lithium hydroxide conversion plant modeled as part of the fully-integrated Carolina Lithium bankable feasibility study published by Piedmont in December 2021. The operating and capital costs, including sustaining capital costs, reflected in that BFS for conversion costs only, excluding mining and concentration, have largely been utilized in this PEA and are the result of detailed scrutiny at the bankable feasibility study level. Site-specific operating and capital costs for LHP-2 have been estimated at a PEA level; these site-specific costs will be updated in future technical studies after a final site selection.
Operating Cost Estimates
The operating cost estimate was prepared based on producing 30,000 t/y of lithium hydroxide monohydrate at the LHP-2 project. Table 5 summarizes the estimated average operating costs during steady state operations.
Table 5: Chemical Plant Cash Operating Cost Summary (Steady State Operations)
Operating Cost Component
Annual Cost ($mm/y)
Cost $/t LiOH
Salaries
$10.0
$334
Operating Consumables and Reagents
$33.0
$1,099
Utilities
$6.4
$214
Maintenance
$3.2
$107
Mobile Equipment
$0.3
$10
Lab Expenses
$2.1
$70
Tailings Disposal
$5.7
$191
Chemical Plant Overheads
$3.1
$103
Subtotal conversion costs
$63.8
$2,128
SC6 supply costs (cash cost basis)
$241.6
$8,053
Corporate G&A
$8.0
$267
Total cash operating costs (steady-state basis)
$313.4
$10,448
The operating cost estimate is based on Q4 2021 U.S. dollars with no escalation. Target accuracy of the operating cost estimate is ± 30%. Operating costs are based on steady-state production. The average operating costs include the commissioning and ramp-up of chemical plant operations.
Capital Cost Estimates
Table 6 highlights the total estimated capital expenditures for the LHP-2 project. Variable contingency has been applied to project costs based on the level of engineering definition completed and the confidence level of supplier and contractor quotations. The capital cost estimate has a ±30% accuracy and is based on Q4 2021 costs.
Table 6: Estimated Capital Costs
Cost Center
Total Capital Costs ($mm)
Direct development costs
$423.3
Project indirects
$56.9
Owner’s costs
$28.0
Contingency
$63.9
Total Development Capital
$572.1
Deferred and sustaining capital
$163.3
Working capital
$127.9
Project Schedule
An indicative project schedule was prepared as part of the PEA. The summary schedule is presented in Figure 7. For the purposes of financial modeling, a project investment decision and ordering of long lead items for LHP-2 is assumed to commence at the start of Project Year 1. This schedule is indicative only and project approvals including receipt of all permits will be required before construction activities can commence on the LHP-2 project.
Commercial production at the lithium hydroxide plant is estimated to start 24 months after the start of construction, with full production achieved within 12 months from the start of production.
Figure 7 – Indicative LHP-2 Project Schedule
Royalties, Taxes, Depreciation, and Depletion
The LHP-2 project economics include the following key parameters related to royalties, tax, and depreciation allowances.
The LHP-2 project relies on third party spodumene concentrate purchases, so no royalties are applied to the model.
Model assumes North Carolina state corporate taxes are 2.5% but will reduce to 0% between 2024-2028
Federal tax rate of 21% is applied and state corporate taxes are deductible from this rate
Effective base tax rate of 22.975% in 2028 and reduces to 21% from 2028 onwards
Depreciation in the lithium hydroxide plant is based on Asset Class 28.0 – Mfg. of Chemical and Allied Products in Table B-1 using GDS of 5 years with the double declining balance method
Bonus depreciation of 80% has been applied based on the bonus depreciation allowance in the Tax Cuts and Jobs Act of 2017, where applicable
Modeling Assumptions
A detailed project economical model was completed by Primero as part of the study with the following key assumptions:
Capital and operating costs are in accordance with technical study outcomes
Chemical plant ramp-up is based on a 12-month time frame to nameplate production
Financial modeling has been completed on a yearly basis, including estimated cash flow for construction activities and project ramp-up
Pricing information for battery-grade lithium hydroxide sales and spodumene concentrate supply are based on a fixed price of $22,000/t for battery quality lithium hydroxide and $1,200/t for 6.0% Li2O spodumene concentrate
Royalties, tax, and depreciation allowances according to stated assumptions
Financial Modelling
This PEA assumes a chemical plant production life of 30 years. The chemical plant operates using market procurement of SC6, including potentially from offtake sources currently controlled by or contracted with Piedmont.
The current economic model is based on a yearly projection of capital costs and assumes that the full capital cost is spent across 2 years prior to the commissioning of the chemical plant. The chemical plant is assumed to ramp to full production over a one-year period.
Payback Period
Payback periods for the LHP-2 project constructed in a single phase is 3.1 years after the start of chemical plant operations or 4.6 years from the start of construction. Payback period is calculated on the basis of after-tax free cash flow.
Sensitivity Analyses
Key inputs into this preliminary economic assessment have been tested by pricing, capital cost, and operating cost sensitivities. The impact to after tax net present value is presented in Figure 8 while impact to project IRR is presented in Figure 9. Additionally, applying discount rates of 7% and 9% resulted in NPV7 of $2,560mm and NPV9 of $1,981mm.
Figure 8 – Net present value sensitivity analysis for LHP-2
A further sensitivity analysis showed that, when holding constant the assumption that long-term forecasted SC6 prices will be 5.5% of lithium hydroxide prices, each $1,000 increase in lithium hydroxide prices leads to an increase in Project NPV of approximately $156mm and steady-state EBITDA of $20mm per year. Applying current spot prices to the PEA financial model[2] results in an after-tax net present value of $8.6bb and a steady-state EBITDA of $1.1bb per year. Using spot prices at Carolina Lithium would result in an after-tax net present value of $11.8bb and steady-state EBITDA during integrated operations of $2.0bb.
Figure 9 – IRR sensitivity analysis for LHP-2
Conclusions and Next Steps
The LHP-2 PEA Study results demonstrate the potential for Piedmont Lithium to expand its lithium hydroxide manufacturing business using imported spodumene concentrate from market sources, including existing offtake agreements which the Company secured in 2021. The Company will now concentrate on the following initiatives to drive the LHP-2 project forward:
Finalize site selection for LHP-2 operations.
Undertake further technical studies associated with LHP-2.
Selection of a Front-End Engineering Design (“FEED”) and EPC contractor for execution of the LHP-2 project.
Submit a second loan application to the Department of Energy’s Loan Program Office under the Advanced Technology Vehicle Manufacturing program for LHP-2.
Incorporate LHP-2 into ongoing strategic discussions led by financial advisors Evercore and J.P. Morgan.
Forward Looking Statements
This announcement includes forward-looking statements within the meaning of applicable securities laws, including statements about LHP-2, the potential selection of a site for such plant, timing and expectations around any development and production of the plant and estimates and assumptions around permitting, revenues and costs of the plant. These forward-looking statements are based on Piedmont’s expectations and beliefs concerning future events. Such forward-looking statements concern Piedmont’s anticipated results and progress of its operations in future periods, planned exploration and, if warranted, development of its properties and plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “may,” “might,” “will,” “could,” “can,” “shall,” “should,” “would,” “leading,” “objective,” “intend,” “contemplate,” “design,” “predict,” “potential,” “plan,” “target” and similar expressions are generally intended to identify forward-looking statements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to:
the risk that anticipated plans, development, production, revenues or costs are not attained;
Piedmont’s operations being further disrupted and Piedmont’s financial results being adversely affected by public health threats, including the novel coronavirus pandemic;
Piedmont’s limited operating history in the lithium industry;
Piedmont’s status as a development stage company, including Piedmont’s ability to identify lithium mineralization and achieve commercial lithium mining;
mining, exploration and mine construction, if warranted, on Piedmont’s properties, including timing and uncertainties related to acquiring and maintaining mining, exploration, environmental and other licenses, permits, access rights or approvals in Gaston County, North Carolina, the Province of Quebec, Canada and Cape Coast, Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future;
completing required permitting activities required to commence processing operations for the LHP-2 Project;
Piedmont’s ability to achieve and maintain profitability and to develop positive cash flows from Piedmont’s processing activities;
Piedmont’s estimates of mineral reserves and resources and whether mineral resources will ever be developed into mineral reserves;
investment risk and operational costs associated with Piedmont’s exploration activities;
Piedmont’s ability to develop and achieve production on Piedmont’s properties;
Piedmont’s ability to enter into and deliver products under supply agreements;
the pace of adoption and cost of developing electric transportation and storage technologies dependent upon lithium batteries;
Piedmont’s ability to access capital and the financial markets;
recruiting, training and developing employees;
possible defects in title of Piedmont’s properties;
compliance with government regulations;
environmental liabilities and reclamation costs;
estimates of and volatility in lithium prices or demand for lithium;
Piedmont’s common stock price and trading volume volatility;
the development of an active trading market for Piedmont’s common stock;
Piedmont’s failure to successfully execute our growth strategy, including any delays in Piedmont’s planned future growth; and
other factors set forth in Piedmont’s most recent Annual Report on Form 10-K and subsequent reports, as filed with the U.S. Securities and Exchange Commission.
All forward-looking statements reflect Piedmont’s beliefs and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future capital and other expenditures, including the amount, nature and sources of funding thereof, competitive advantages, business prospects and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking statements will not occur. Although Piedmont have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. Piedmont cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the securities laws of the United States, Piedmont disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Piedmont qualifies all the forward-looking statements contained in this release by the foregoing cautionary statements
Illustrative financial outcomes for the Carolina Lithium Project when applying a fixed price of $22,000 per metric tonne of lithium hydroxide and $1,200 per metric tonne of spodumene concentrate to the Carolina Lithium financial model. Results are Company estimates and indicative only and are not independently verified by the Carolina Lithium BFS Qualified Persons. ↑
Applying an assumption of $66,500/t for lithium hydroxide and $4,000/t for spodumene concentrate as the fixed pricing assumption within the Carolina Lithium and LHP-2 financial models based on current spot pricing as reported by Fastmarkets on March 7, 2022. ↑
BELMONT, N.C., March 3, 2022 – Piedmont Lithium Inc. (“Piedmont” or the “Company”) (NASDAQ: PLL; ASX: PLL), a leading, diversified developer of lithium resources required to enable the U.S. electric vehicle supply chain, today announced that Piedmont’s partner, Sayona Mining (ASX:SYA), recently announced completion of a Mineral Resource estimate update for the North American Lithium and Authier Projects in Quebec totaling 119.1 million metric tonnes @ 1.05% Li2O. Piedmont owns a 25% project interest in the North American Lithium and Authier Projects via an equity stake in Sayona Quebec as well as an equity interest of approximately 17% in Sayona Mining. Sayona Mining’s estimate, including 73.7 Mt @ 1.05% Li2O of Measured and Indicated Resources, was reported in accordance with JORC Code (2012) and NI 43-101 standards.
“Sayona’s reported doubling of the Mineral Resources at North American Lithium and Authier supports Sayona Quebec’s claim as the largest spodumene resource in Canada, and this is the next step in helping Piedmont achieve its vision of becoming the leading lithium hydroxide producer in North America,” said Piedmont COO, Patrick Brindle. Mr. Brindle added, “We are happy and excited for our partners. Sayona Quebec is one of the largest and best-located spodumene businesses in Canada and, as a past-producer with the bulk of plant and equipment in place, we believe is also the most advanced at this time. We look forward to Sayona’s upcoming release of new technical studies for both Authier and North American Lithium as we advance our plans to jointly restart spodumene concentrate production at North American Lithium in 2023 as the world’s demand for electric vehicles and lithium hydroxide continues to accelerate.”
The statements below were prepared by, and made by, Sayona. The following disclosures are not statements of Piedmont and have not been independently verified by Piedmont. Sayona is not subject to U.S. reporting requirements or obligations, and investors are cautioned not to put undue reliance on these statements.
Piedmont Lithium (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. The centerpiece of our operations, Carolina Lithium, is located in the renowned Carolina Tin-Spodumene Belt of North Carolina. Combining our U.S. assets with equally strategic and in-demand mineral resources, and minority equity investments in companies that own production assets in Quebec and Ghana, positions us to be one of the largest, lowest cost, most sustainable producers of battery-grade lithium hydroxide in the world. We will also be the most strategically located to best serve the fast-growing North American electric vehicle supply chain. The unique geology, geography and proximity of our resources, production operations and customer base, will allow us to deliver valuable continuity of supply of a high-quality, sustainably produced lithium hydroxide from spodumene concentrate, preferred by most EV manufacturers. Our diversified operations will enable us to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage. For more information, 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, and construction activities of Sayona and Piedmont; current plans for Piedmont’s mineral and chemical processing projects; 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 or Sayona will be unable to commercially extract mineral deposits, (ii) that Piedmont’s or Sayona’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 Quebec and 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 presentation and actual events, results, performance, and achievements could vary significantly from the forward-looking statements, projections and estimates presented in this presentation. 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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are terms defined by the U.S. Securities and Exchange Commission (“SEC”) in Regulation S-K, Item 1300 (“S-K 1300”) as well as the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and the Canada Securities Administrators National Instrument 43-101 Standards for Disclosure for Mineral Projects (“NI 43-101”). In Sayona’s announcement, it indicates that it has prepared resources information in accordance with the standards set forth in the 2012 Edition of the JORC Code and NI 43-101. Such standards differ from the requirements of U.S. securities laws that would apply if Sayona were a reporting company in the United States. Therefore, the mineral resources reported by Sayona Mining are not comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder. U.S. investors are urged to consider closely the context and nature of Sayona’s disclosures in its public communications, as well as the disclosure in Piedmont’s Form 10-KT, a copy of which may be obtained from Piedmont or from the EDGAR system on the SEC’s website at http://www.sec.gov/.
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