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/.
BELMONT, N.C., February 25, 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 two senior management changes. David Klanecky, Piedmont’s Chief Operating Officer, has accepted the position of Chief Executive Officer of Retriev Technologies, the largest most diverse lithium-ion battery processer in North America. Mr. Klanecky will continue to work as a member of Piedmont’s external Technical Advisory Board, and Community Foundation. “David has been a great teammate and I’m happy for him to have received this opportunity to be CEO of Retriev, a private company with sizeable existing operations and an exciting growth path,” said Piedmont CEO, Keith Phillips. Mr. Phillips added, “We are pleased to have David continue his association with the Company as both a strategic advisor and as a member of our Community Foundation, something he has been passionately involved in developing.”
Piedmont’s Chief Development Officer, Mr. Patrick Brindle, will assume the role of Chief Operating Officer going forward. Mr. Brindle joined Piedmont in January 2018 and has led the Company’s technical and strategic efforts over the past four years, including advancing the Company’s flagship Carolina Lithium Project and leading Piedmont’s strategic investments in Sayona Mining in Quebec and Atlantic Lithium in Ghana. Mr. Phillips commented, “Patrick is an exceptional talent who is deeply passionate about building North America’s largest and most sustainable lithium hydroxide business. Having helped create our world-class and geographically diversified asset base, Patrick is uniquely positioned within our team to lead a transformation of Piedmont Lithium from a development stage company into production and operations on the most practically achievable timelines possible.
Our mission in 2022 is the successful execution of our near-term goals including advancing permits and approvals for our flagship Carolina Lithium Project, expanding our business plans to produce 60,000 tons per year of lithium hydroxide with a second lithium conversion plant, bringing our North American Lithium mine back into production with our partner Sayona Mining, and completing a feasibility study at Atlantic Lithium’s Ewoyaa Project in Ghana.
We have grown from a team of four employees two years ago to 30 today, including a deep technical team. We are also blessed with strong partners at our businesses in Canada and Ghana, which are both pursuing accelerated development schedules to capitalize on strong lithium market conditions. With Sayona Mining projecting first production from the restart of North American Lithium in 2023, Atlantic Lithium planning first production at the Ewoyaa project in 2024, and our own projects advancing towards their construction decisions, Piedmont Lithium’s future is positively electric.”
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 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; current plans for Piedmont’s mineral and chemical processing projects; strategy; and expectations regarding permitting. 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 will be unable to commercially extract mineral deposits, (ii) that Piedmont’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.
BELMONT, N.C. – 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, is pleased to announce the results of its annual meeting of shareholders held virtually on February 3, 2022 (the “Meeting“), at which the shareholders approved all motions put forward by the Company.
A total of 8,520,938 votes were cast in connection with the Company’s proxy, representing 53.69% of the issued and outstanding common shares of the Company.
All resolutions, as outlined in the Company’s proxy statement dated November 30, 2021, available on the Company’s website and at: Form DEF 14A (dd7pmep5szm19.cloudfront.net) were approved by the requisite majority of votes cast at the Meeting. The number of directors is fixed at 6. The two director nominees named in the Proxy Statement were elected to serve until the 2024 Annual Meeting of Stockholders or until their successors are duly elected and qualified.
The other seven resolutions, the appointment of the Auditors, the issuance of stock options to Mr. Keith Phillips under the Company’s Stock Plan, and the issuance of restricted stock units to Mr. Jeff Armstrong, Mr. Keith Phillips, Mr. Todd Hannigan, Mr. Jorge Beristain, Mr. Claude Demby, and Ms. Susan Jones under the Company’s Stock Plan, also passed at the meeting. Details of voting are provided in the tables that follow:
PROPOSAL 1: Election of two (2) Class I director nominees to serve until the 2024 Annual Meeting of Stockholders and until their successors are duly elected and qualified:
NOMINEE
FOR
WITHHOLD
Mr. Keith Phillips
4,080,447
466,300
Mr. Todd Hannigan
4,020,943
525,804
PROPOSAL 2: Ratification of the selection of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ending June 30, 2022:
FOR
AGAINST
ABSTAIN
7,995,679
100,008
425,251
PROPOSAL 3: Approval to issue 10,786 stock options to Mr. Keith Phillips and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,789,952
1,272,986
483,809
PROPOSAL 4: Approval to issue 5,344 restricted stock units to Mr. Keith Phillips and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
3,392,760
668,728
485,259
PROPOSAL 5: Approval to issue 1,796 restricted stock units to Mr. Jeff Armstrong and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,892,549
1,171,544
482,654
PROPOSAL 6: Approval to issue 1,197 restricted stock units to Mr. Jorge Beristain and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,889,924
1,172,087
484,736
PROPOSAL 7: Approval to issue 1,197 restricted stock units to Mr. Todd Hannigan and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,891,059
1,170,771
484,917
PROPOSAL 8: Approval to issue 1,197 restricted stock units to Mr. Claude Demby and/or his nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,891,627
1,171,156
483,964
PROPOSAL 9: Approval to issue 1,197 restricted stock units to Ms. Susan Jones and/or her nominee under the Company’s Stock Plan:
FOR
AGAINST
ABSTAIN
2,895,108
1,167,384
484,255
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 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; current plans for Piedmont’s mineral and chemical processing projects; strategy; and expectations regarding permitting. 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 will be unable to commercially extract mineral deposits, (ii) that Piedmont’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.
This announcement has been authorized for release by the Company’s President & CEO, Keith D. Phillips.
Appendix – Results of Annual Meeting of Shareholders
Piedmont Lithium Inc.
Annual General Meeting – 3 February 2022
The following information is provided in accordance with ASX Listing Rule 3.13.2:
Resolution
Number
of Proxy Votes
Number
of Votes cast on the Poll
For
Against
Abstain
Proxy’s
discretion
For
Against
Abstain
Result
1.1 Election of Mr Keith Phillips
4,080,447
N/A
466,300
–
4,080,447
N/A
466,300
Vote carried by poll
1.2 Election of Mr Todd Hannigan
4,020,943
N/A
525,804
–
4,020,943
N/A
525,804
Vote carried by poll
2. Ratification of Auditor
Selection
7,995,679
100,008
425,521
–
7,995,679
100,008
425,521
Vote carried by poll
3. Approval to issue stock
options � Mr Keith Phillips
2,789,952
1,272,986
483,809
–
2,789,952
1,272,986
483,809
Vote carried by poll
4. Approval to issue
restricted stock units � Mr Keith Phillips
3,392,760
668,728
485,259
–
3,392,760
668,728
485,259
Vote carried by poll
5. Approval to issue
restricted stock units � Mr Jeff Armstrong
2,892,549
1,171,087
482,654
–
2,892,549
1,171,087
482,654
Vote carried by poll
6. Approval to issue
restricted stock units � Mr Jorge Beristain
2,889,924
1,172,087
484,736
–
2,889,924
1,172,087
484,736
Vote carried by poll
7. Approval to issue
restricted stock units � Mr Todd Hannigan
2,891,059
1,170,771
484,917
–
2,891,059
1,170,771
484,917
Vote carried by poll
8. Approval to issue
restricted stock units � Mr Claude Demby
2,891,627
1,171,156
483,964
–
2,891,627
1,171,156
483,964
Vote carried by poll
9. Approval to issue
restricted stock units � Ms Susan Jones
Carolina Lithium Advancing Toward Final Investment DecisionInternational Investments Support Plans for Additional U.S. Hydroxide Production
Piedmont expects to double U.S. lithium hydroxide production to 60,000 tpy
30,000 tpy at the fully integrated Carolina Lithium Project
30,000 tpy at a second planned U.S. plant, with site selection expected in Q2 2022
Piedmont plans to produce or has offtake rights to an estimated 500,000 tpy of SC6 production
Flagship Carolina Lithium Project is advancing toward a Final Investment Decision
Bankable Feasibility Study (BFS) published in December 2021
Economic Impact Study (EIS) published in January 2022
Key workstreams for 2022
Detailed engineering / Front End Engineering Design
EPC contractor selection
Final permitting and approvals
Strategic partnering and potential project debt financing
Investments in strategic resources in Quebec and Ghana position Piedmont for future growth
Partnering with Sayona Mining (ASX: SYA) to develop one of Quebec’s leading lithium businesses
Planned H1 2023 restart of North American Lithium’s spodumene concentrate plant
Piedmont holds offtake rights to 50% of NAL production life-of-mine
Partnering with Atlantic Lithium (AIM: ALL) to develop a world-class spodumene resource in Africa
Expected increases to mineral resource estimates in 2022 based on recent drill results
Feasibility Study (FS) expected late-2022; investment decision to follow
BELMONT, N.C., February 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 provided an update on near-term growth initiatives with its projects in North Carolina, Quebec, and Ghana.
“We are developing our assets at an opportune time with global sales of electric vehicles (EVs) having doubled in 2021, and large U.S. battery plant investments being made by major automotive and battery companies. This electrification of the automotive market is a generational investment opportunity, and we are uniquely well-positioned to capitalize on it,” commented Piedmont Lithium President and CEO, Keith Phillips.
“We are advancing our flagship Carolina Lithium Project through key permitting, engineering, and project financing steps,” Mr. Phillips added, “and we expect to achieve significant milestones this year. Our recent feasibility study confirmed the strategic nature of Carolina Lithium, with NPV exceeding $2 billion and independent assessments confirming its impressive sustainability profile. We expect Carolina Lithium to be a critical factor in furthering the United States’ progress toward lithium self-sufficiency.
“In addition to Carolina Lithium, we are progressing our two international investments and our plans to develop a second lithium hydroxide conversion plant. We are collaborating with our partner, Sayona Mining, to capitalize on strong lithium market conditions through the restart of spodumene concentrate production at our jointly owned North American Lithium (NAL) business in Quebec. Long lead equipment has been ordered and production is expected to commence in the first half of 2023. Exploration activities are continuing at the Ewoyaa Project in Ghana and, along with our partner Atlantic Lithium, we plan to complete a feasibility study in 2022, with first production possible in 2024. These significant spodumene assets support our plans to launch a second 30,000 tpy lithium hydroxide conversion plant. U.S. lithium demand is soaring, and domestic lithium hydroxide capacity is currently a fraction of what will be required in the mid-/late-2020s.”
Carolina Lithium Project (North Carolina)
Piedmont published a Bankable Feasibility Study (FS) for its flagship, 100%-owned, fully integrated Carolina Lithium Project in December 2021. The FS contemplated production of 30,000 metric tons per year (tpy) of lithium hydroxide, 242,000 tpy of spodumene concentrate (SC6), as well as by-products quartz, feldspar, and mica. The Carolina Lithium Project is expected to be a highly sustainable low-cost producer given its location in Gaston County, North Carolina, and exceptional infrastructure, low power costs, proximity to important automotive and battery customers, and large markets for our by-product minerals.
The Carolina Lithium Project will be unique as the world’s only fully integrated single campus spodumene ore-to-hydroxide project under development or in operation. The integrated site provides economic and environmental advantages, including the elimination of long transport distances for SC6 concentrate compared with competitor operations. The FS outlines strong project economics, including an after-tax net present value (NPV8) of $2.04 billion, after-tax internal rate of return of 27%, and steady-state EBITDA of more than $450 million per year in the first ten years.
The results of an Economic Impact Study (EIS), which analyzed the potential local economic benefits of the Carolina Lithium Project, were announced in January 2022. The EIS, prepared by independent consultant Dr. John Connaughton of The University of North Carolina at Charlotte, identified the potential for the Project to contribute approximately 1,100 full time jobs in Gaston County and contribute approximately $800 million in annual direct and indirect local economic output.
Piedmont is highly focused on advancing the Carolina Lithium Project towards a final investment decision and start of construction. Critical 2022 work streams include permitting, engineering and project financing.
Permitting Activities
In August 2021, we submitted a mining permit application to the North Carolina Department of Environmental Quality’s (NCDEQ) Division of Energy, Minerals, and Land Resources (DEMLR). DEMLR held standard public hearings in November 2021 in connection with our mining permit application. As is customary, we received requests for additional information from DEMLR related to certain aspects of our mining permit application, and we are responding to those requests on a timely basis. Our engagement with the regulators is constructive and we look forward to a successful conclusion of this important process.
In January 2022, we submitted a determination request to NCDEQ’s Division of Air Quality (DAQ) in connection with the air permit required for the Carolina Lithium Project. Upon receipt of a response from DAQ with respect to this request, we will proceed with an air permit application for the Project.
In September 2021, Gaston County updated its Unified Development Ordinance (“UDO”), which in part, defined operational requirements for new mines and quarries in the county. The UDO updates also established that new mines and quarries must operate on industrially zoned property in the county and will require a Special Use Permit approved by the Gaston County Board of Commissioners. We remain in pre-application consultation with Gaston County and will proceed with a re-zoning application and a special use permit application upon receipt of our DEMLR mining permit approval.
Contractor Selection and Design Engineering
Lithium Hydroxide Conversion Plant
We are evaluating bids for the front-end engineering design (FEED) for Carolina Lithium’s 30,000 tpy lithium hydroxide conversion plant. We expect to launch FEED for our hydroxide plant in Q2 2022.
Spodumene Concentrator
Piedmont Lithium previously entered into an MOU with Primero Group – a world-leader in spodumene concentrate design, construction and operation – for the construction of our Carolina Lithium spodumene concentrator, by-products operations and associated infrastructure. The MOU addresses four areas of work scope:
Feasibility Study – completed
Front End Engineering Design
EPC delivery of the spodumene concentrator and by-products plants
Contract operations of the spodumene concentrator and by-products plants
The terms of the MOU (1) provide incentives for Primero Group to achieve safety, schedule, budget, process performance, production, and recovery targets, and (2) create a delivery framework which significantly reduces technical, operational, and commercial risks associated with the spodumene concentrator. We expect to authorize Primero Group to start FEED of the Carolina Lithium spodumene concentrator on a schedule that aligns with the issuance of our state mining permit.
Contract Mining Operations
In 2021 and in connection with our FS, we solicited requests for proposal for contract mining services covering pre-stripping, drilling and blasting, loading and hauling of waste rock, and construction of mining infrastructure including in-pit crushing and conveyor systems. We received proposals from four contractors.
The FS assumes capital and operating costs that are based on contract mining services. As part of FEED, we will continue to refine the estimated costs associated with our mining operations, with a goal of awarding contract mining services to a preferred contractor in H1 2022.
Project Financing
We continue to evaluate a number of alternatives to fund construction of the Carolina Lithium Project.
Advanced Technology Vehicle Manufacturing Loan Program
In 2021, we submitted a loan application to the Loan Programs Office (LPO) of the U.S. Department of Energy (DOE) for potential funding of construction costs for eligible components of the Carolina Lithium Project under the Advanced Technology Vehicle Manufacturing Program. We are actively engaged with the LPO and expect their due diligence process to continue for several months. If approved by the LPO with terms acceptable to Piedmont, debt-funding from the DOE would significantly contribute to the capital needs of Carolina Lithium.
Strategic Partnering
In 2021, we retained the services of two investment banking firms, Evercore and J.P. Morgan, to act as advisors in a strategic investment process for the Carolina Lithium Project. We are currently engaged in discussions for a potential investment in our flagship Carolina Lithium Project, and we expect to conclude this process later this year.
Growth Projects
Abitibi Hub (Quebec)
Piedmont owns ~16.5% of Sayona Mining (“Sayona”) (ASX: SYA) and 25% of Sayona Quebec, which has three lithium projects in the Abitibi region of Quebec, including Canada’s most advanced lithium project, North American Lithium (NAL).
Sayona recently announced plans to restart spodumene concentrate production at NAL, with first production expected in H1 2023. Plans for NAL include capital improvements designed to improve throughput, concentrate grade, recovery, and mechanical availability. Detailed design engineering plans of the upgrades has started, and key long lead equipment orders have been placed to maintain the target start-up date. The NAL operation has a nameplate capacity of 180,000 tpy of SC6, and Piedmont has an offtake agreement in place for the greater of 50% of production, or 113,000 tpy.
Sayona Quebec is also completing studies related to the potential inclusion of spodumene ore from the Authier Project as supplementary feed into NAL’s concentrate plant. A consolidated mineral resource update and a feasibility study for the combined operation are expected from Sayona in the coming months. Together with Sayona, we are studying longer-term options to produce lithium hydroxide in Quebec. In the event we develop conversion capacity jointly with Sayona in Quebec, SC6 deliveries from Authier and NAL would be prioritized to our jointly owned conversion plant.
Ewoyaa (Ghana)
Piedmont is earning a 50% interest in Atlantic Lithium’s spodumene projects in Ghana, and owns a 9.9% stake in the parent company (AIM: ALL). Atlantic Lithium’s flagship is the Ewoyaa Project, located near the Ghanaian coast approximately 70 miles from the deep-water port of Takoradi. Exploration activities are ongoing for the Ewoyaa Project, with recently announced drill results indicating potential to expand the existing high-grade mineral resource of 21.3Mt @1.31% Li2O.
According to technical studies completed by Atlantic Lithium, the Ewoyaa project is expected to have attractive capital and operating costs and a relatively short construction and commissioning period. We are working with Atlantic Lithium to complete a prefeasibility study for Ewoyaa in H1 2022, with potential for first spodumene concentrate production during 2024. Atlantic Lithium forecasts that Ewoyaa is expected to produce ~300,000 tpy of SC6, and Piedmont has an offtake agreement in place for 50% of annual production at market prices.
Our strategy is that spodumene concentrate from Ewoyaa will support a second lithium hydroxide conversion plant.
U.S. Lithium Hydroxide Manufacturing Expansion to 60,000 tpy
Piedmont aspires to be America’s leading lithium hydroxide producer and our international spodumene investments in 2021 were made with this objective in mind. Our plan is to advance two 30,000 tpy lithium hydroxide conversion facilities in the U.S., each proceeding on the fastest practical timetable.
Our Carolina Lithium Project is proceeding through its approval and engineering processes. We expect to complete a preliminary economic assessment (PEA) in Q1 2022 for a second 30,000 tpy LiOH plant (Plant Two) that will be substantially identical to the conversion facilities described in our Carolina Lithium Project FS. We expect to support our LiOH manufacturing at Plant with SC6 deliveries under our SC6 offtake agreement with Atlantic Lithium.
Site selection for Plant Two is underway, and we expect that a decision will be finalized in Q2 2022. Key considerations for site selection include available infrastructure, supply logistics (for SC6 and reagents), proximity to prospective automotive and battery customers, and anticipated permitting requirements.
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 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; current plans for Piedmont’s mineral and chemical processing projects; strategy; and expectations regarding permitting. 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 will be unable to commercially extract mineral deposits, (ii) that Piedmont’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.
Competent Persons Statement
The information in this announcement that relates to Production Targets and Financial Analysis of the Carolina Lithium Project is extracted from the Company’s ASX announcement dated December 15, 2021, which is available on the Company’s website at www.piedmontlithium.com. Piedmont confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning Mineral Resources, Exploration Targets, Production Targets, and related forecast financial information derived from Production Targets included in the original ASX announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially modified from the original ASX announcements.
A pós-graduação em Data Warehouse e Business Intelligence é uma das opções para expandir o seu portfólio. A profissão de cientista de dados é uma boa alternativa para quem ainda está escolhendo a faculdade e para quem já tem formação em Engenharia, Matemática e Física. Se o cientista de dados ocupar um cargo de gerência, o salário média salta para R$ 19.000,00, sendo o teto de R$ 35.000,00. Vale ressaltar que a área de tecnologia Dominando o QA: técnicas e ferramentas para testagem de software possibilita o que o profissional trabalhe em Home Office, formato de trabalho que tem se tornado cada vez mais popular, em que local e horários são flexíveis. Ou seja, você pode morar em uma cidade do interior do Brasil e ser contratado de uma empresa no Canadá. Esse cenário faz com que o cientista de dados tenha mais liberdade para escolher em qual empresa e setor gostaria de trabalhar, além de ser muito bem remunerado.
Com campus em Seattle, Silicon Valley, Barcelona, Toronto, Washington e Paris, o Data Dojo Science oferece educação rápida e acessível para profissionais de todo o mundo. É um dos programas mais curtos nesta lista, com apenas cinco dias de duração, e promete capacitar os participantes em Machine Learning e nos modelos preditivos como serviço, e cada aluno completará um https://pordentrodeminas.com.br/noticias/gerais/2024/04/analista-de-qa-tecnologias-ferramentas-e-qual-curso-escolher/ projeto IOT completo e terá a chance de entrar em uma competição Kaggle. Aqui estão 17 dos melhores bootcamps de ciência dos dados, projetados para aprimorar as habilidades de dados, tanto para iniciantes quanto para cientistas de dados experientes. Inicialmente, o seu objetivo não era trabalhar como analista de dados, já que buscou por vagas em ciência da computação.
Cientista de dados[editar editar código-fonte]
Quando estamos lidando com grandes volumes de dados se torna necessário conhecer ferramentas como Hadoop e Spark. O único ponto de atenção aqui é que a linguagem Python é também muito utilizada em outras aplicações não necessariamente ligadas a dados, como desenvolvimento back-end e desktop. Muitas vezes usamos variáveis com alta correlação que não fazem sentido no projeto final por estarem carregando informações muito próximas ou duplicadas. Depois de decidir quais colunas manteríamos, outra parte importante foi a identificação dos outliers, mesmo depois de feita a limpeza dos dados, já que muitas vezes os removemos sem entender quais são os impactos em uma predição. Com todas as pessoas em casa, sem ver os amigos pessoalmente e sem fazer tarefas do dia a dia fora de casa, abriu-se uma porta para os estudos e a área tech foi o alvo, já que milhares de empresas dessa área estavam abrindo diversas novas vagas.
Este texto fornece uma visão geral da ciência de dados, mas há muito mais para explorar e aprender neste campo dinâmico e em rápida expansão.
Afinal, os tempos mudaram e a informação passou a ser o ativo mais valioso para qualquer tipo de empresa.
Ser um cientista de dados significa possuir habilidades avançadas de programação, essenciais para aplicar conhecimentos na resolução de problemas reais.
Os cientistas de dados não só entendem o problema, mas também podem criar uma ferramenta que forneça soluções para o problema.
O cientista de dados resolve problemas, ajuda a tomada de decisão a partir de dados brutos que nem sempre são úteis e que muitas vezes são muito volumosos e complexos.
O futuro da Ciência de Dados promete ser ainda mais integrado, com uma ênfase crescente na ética e na responsabilidade social, refletindo sua importância fundamental na moldagem de um futuro orientado por dados. Em conclusão, a Ciência de Dados representa uma das áreas mais interessantes e em crescimento no panorama tecnológico atual. Falando dos salários e vagas em uma pesquisa no site Vagas.com a média salarial para Cientistas de Dados é de R$ 6.144,00. Uma forma de lidar com esse oceano de possibilidades é tentando construir uma base sólida de conhecimento. Isso envolve não apenas a implementação de medidas de segurança robustas, mas também a garantia de que a coleta e uso dos dados estejam em conformidade com as leis de privacidade, como o GDPR na Europa e a LGPD no Brasil.
Desafios de implementação de projetos de ciência de dados
Ter um ritmo faz você manter aquele trabalho a médio-longo prazo, então a gente vê uma correlação entre você ter ritmo com um objetivo a médio-longo prazo de concluir diversos estudos. De acordo com o levantamento da Robert Half que mencionamos no início, o salário de um cientista de dados sênior pode chegar a R$ 26,7 mil. A melhor maneira de dar os primeiros passos no mercado de trabalho é começar por um es… Desenvolva e ajuste a escala de modelos de IA com seus aplicativos nativos em cloud entre praticamente qualquer cloud.
O curso exige cerca de 20 a 30 horas por semana de trabalho e a maioria dos alunos se formou em cerca de seis meses.
A taxa de matrícula varia de acordo com o programa escolhido, mas começa em cerca de US $ 3.000 e as bolsas de estudo estão disponíveis para estudantes qualificados.
Há uma forte relação da área da ciência de dados com a inteligência artificial, uma vez que o principal profissional que lida com o desenvolvimento, manutenção e fiscalização de inteligências artificiais e machine learning é o cientistas de dados.
Um bom exemplo pode ser observado nas redes sociais, que misturam um grande número de textos, imagens, vídeos e diversos outros formatos.
Report Outlines Estimated Financial and Job Creation Impact in Gaston County, North Carolina
Report Highlights:
In 2027, the direct output impact is estimated to be $533,607,785
In 2027 the total output impact (including supplier chain impacts and induced impacts) is estimated at $687,844,432
In 2027 the direct employment of the project is estimated to be 428 jobs
In 2027 the total employment impact (including supplier chain impacts and induced impacts) is estimated at 1,051 jobs
In year 2027 the average compensation of the projected 428 direct employees of Piedmont Carolina Lithium is estimated at $82,181. That is 34 percent greater than the current Gaston County average compensation level of $61,377.
*All dollar values are expressed in 2022 constant dollars
BELMONT, N.C., January 12, 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 announced results of an Economic Impact Study (EIS) for its proposed Carolina Lithium Project in Gaston County, North Carolina. The report was developed by John E. Connaughton, Ph.D., Professor of Financial Economics at the University of North Carolina-Charlotte. The full report, along with the Executive Summary can be found at:
The proposed project will be undertaken by Piedmont Carolina Lithium as a single integrated facility that will include three operations: quarrying, spodumene concentration and by-product processing, and the production of an estimated 30,000 tons of lithium hydroxide from spodumene concentrate on an annual basis. The study was conducted assuming the facility ramps-up operations over a five-year period beginning in 2023. In 2023 the direct output of the project is estimated to be $6,401,995. The total output impact in 2023 (including supplier chain impacts and induced impacts) is estimated at $8,141,774. By year 2027, the direct annual output impact is estimated to be $533,607,785 The total annual output impact in 2027 (including supplier chain impacts and induced impacts) is estimated at $687,844,432.
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. For more information, www.piedmontlithium.com.
BELMONT, North Carolina, January 11, 2022 (BUSINESS WIRE) – Piedmont Lithium Inc. (“Piedmont Lithium” or the “Company”) (NASDAQ: PLL) (ASX: PLL) today announced that after convening the Company’s 2022 Annual Meeting of Stockholders (the “Annual Meeting”) virtually on Tuesday, January 11, 2022, at 11 a.m. Eastern Time, the Company adjourned the Annual Meeting until Thursday, February 3, 2022 at 2 p.m. Eastern Time. Due to the COVID-19 pandemic and to mitigate the risks to the health and safety of our community, stockholders and employees, Piedmont Lithium will also be holding its rescheduled Annual Meeting in a virtual-only format, by way of webcast, and no physical or in-person meeting will be held.
At the original scheduled time of the Annual Meeting, a total of 7,329,207 shares of the Company’s common stock, or 46.18% of the common stock outstanding and entitled to vote as of November 22, 2021 (including shares of common stock underlying CHESS Depositary Interests (“CDIs”)), the record date for the Annual Meeting (the “Record Date”), were present at the Annual Meeting, either virtually or represented by proxy, which fell short of the majority of shares of common stock outstanding and entitled to vote required to reach quorum. For the sole reason of the lack of quorum, the Company adjourned the Annual Meeting to provide the Company’s stockholders additional time to vote their shares.
The preliminary voting tabulation, as of the original scheduled time of the Annual Meeting, is set forth below. As a reminder, the polls remain open and we encourage all stockholders to vote their shares if they have not already done so. Details of the final voting results, including votes validly received at the rescheduled Annual Meeting, will be tabulated and included with the official minutes of the Annual Meeting and will be available for all stockholders in our filings with the U.S. Securities and Exchange Commission within four business days.
Votes
For
Votes
Withheld
Broker
Non-Votes
Proposal 1. Election of Class I Directors
Mr. Keith Phillips
3,097,354
60,068
4,171,785
Mr. Todd Hannigan
3,037,072
120,350
4,171,785
Votes
For
Votes
Against
Abstentions
Broker
Non-Votes
Proposal 2. Ratification of Deloitte & Touche LLP as Independent Auditor
7,131,059
165,652
32,496
–
Proposal 3. Approval to issue 10,786 stock options to Mr. Keith Phillips
1,914,920
1,184,493
58,009
4,171,785
Proposal 4. Approval to issue 5,344 restricted stock units to Mr. Keith Phillips
2,511,398
586,044
59,980
4,171,785
Proposal 5. Approval to issue 1,796 restricted stock units to Mr. Jeff Armstrong
2,008,587
1,089,972
58,863
4,171,785
Proposal 6. Approval to issue 1,197 restricted stock units to Mr. Jorge Beristain
1,983,107
1,090,525
83,790
4,171,785
Proposal 7. Approval to issue 1,197 restricted stock units to Mr. Todd Hannigan
2,006,853
1,092,079
58,490
4,171,785
Proposal 8. Approval to issue 1,197 restricted stock units to Mr. Claude Demby
2,006,740
1,092,045
58,637
4,171,785
Proposal 9. Approval to issue 1,197 restricted stock units to Ms. Susan Jones
2,009,241
1,089,373
58,808
4,171,785
We encourage all stockholders to actively take steps to vote their shares. See below under “How do I vote?” for instructions on how to vote if you have not already voted.
We also encourage all stockholders and interested parties to refer to our Annual Report and Form 10-K for the year ended June 30, 2021 which can be found on our website at www.piedmontlithium.com. You can also find our proxy materials, including our proxy statement dated November 30, 2021 (the “Proxy Statement”) on our website in the “Investors” section under “SEC Filings.” The Proxy Statement and Annual Report are also available at www.proxyvote.com.
How can I participate in the rescheduled virtual Annual Meeting?
Stockholders of record as of the close of business on the Record Date are entitled to participate in and vote at the rescheduled virtual Annual Meeting. To participate in the rescheduled Annual Meeting, including to vote, ask questions and view the list of registered stockholders as of the Record Date during the meeting, stockholders of record should go to the same meeting website at www.virtualshareholdermeeting.com/PLL2022, enter the 16-digit control number found on your proxy card or Notice of Internet Availability of Proxy Materials (the “Notice”) and follow the instructions on the website. If your shares are held in street name and your voting instruction form or Notice indicates that you may vote those shares through www.proxyvote.com, then you may access, participate in and vote at the rescheduled Annual Meeting with the 16-digit access code indicated on that voting instruction form or Notice. Otherwise, stockholders who hold their shares in street name should contact their bank, broker or other nominee (preferably at least five days before the rescheduled Annual Meeting) and obtain a “legal proxy” in order to be able to attend, participate in or vote at the rescheduled Annual Meeting.
The meeting webcast will begin promptly at 2 p.m. Eastern Time. Online check-in will begin approximately 15 minutes before then, and we encourage you to allow ample time for check-in procedures. If you experience technical difficulties during the check-in process or during the meeting, please call the number listed on the meeting website for technical support. Additional information regarding the rules and procedures for participating in the rescheduled Annual Meeting will be set forth in our meeting rules of conduct, which stockholders can view during the meeting at the meeting website. Regardless of whether you plan to participate in the rescheduled Annual Meeting, it is important that your shares be represented and voted. Accordingly, we encourage you to vote in advance of the rescheduled Annual Meeting.
How do I vote?
Full details on how to vote, change or revoke a vote, appoint a proxyholder, attend the rescheduled virtual Annual Meeting, ask questions and other general proxy matters are available in the Proxy Statement, available on the Company’s website or the sec.gov website.
The record date for determining stockholders and CDI holders eligible to vote at the Annual Meeting will remain the close of business on November 22, 2021. Stockholders and CDI holders who have already submitted a valid proxy do not need to vote again for the rescheduled Annual Meeting, as the proxies submitted will remain valid. Stockholders who have already submitted a proxy and want to change their vote, can update their vote in the manner set forth in the Proxy Statement. Your vote will be recorded at the rescheduled Annual Meeting in accordance with your most recently submitted proxy.
Piedmont Lithium stockholders and CDI holders as of close of business on the Record Date who have not voted are encouraged to vote by following the instructions in the Proxy Statement. Stockholders that need assistance voting or have questions may contact the Company’s proxy solicitation firm, Morrow Sodali, at PLL@investor.morrowsodali.com.
Previously, the voting cut-off date for CDI holders was 9 a.m. Australian Eastern Daylight Time, Thursday, January 6, 2022. Due to the adjournment of the Annual Meeting, the voting cut-off time for CDI holders has now been extended to Friday, January 28, 2022 at 9 a.m. Australian Eastern Daylight Time.
Whether or not you plan to attend the rescheduled virtual Annual Meeting, we urge you to vote and submit your proxy in advance of the Annual Meeting by one of the methods described in the Proxy Statement found on our corporate website.
About Piedmont Lithium Inc.
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 please visit www.piedmontlithium.com.
Piedmont Lithium Inc. (“Piedmont” or the “Company”) is pleased to report the results of a Bankable Feasibility Study (“BFS”) for its 100% owned proposed integrated lithium hydroxide business (“Carolina Lithium” or the “Project”) in Gaston County, North Carolina. The Study confirms that Carolina Lithium could be one of the world’s largest and lowest-cost producers of lithium hydroxide, with a sustainability footprint that is superior to incumbent producers, all in a highly favorable location to supply the rapidly growing electric vehicle supply chain in the United States.
Lithium Hydroxide for the United States Electric Vehicle Market
U.S. Electric Vehicle (“EV”) demand is expected to grow 12x by 2030 (Benchmark Minerals)
Commitments of over $25 billion to build U.S. battery capacity by 2030
Lithium Hydroxide (“LiOH”) is required in the high-nickel batteries used in longer range EVs
Carolina Lithium is positioned to be the leading U.S. source of Lithium Hydroxide
Positive ESG Profile
LiOH will power the electrification of the vehicle business, dramatically reducing carbon and other emissions vs. traditional internal combustion vehicles
Superior sustainability profile relative to current LiOH producers in China and South America
Automotive companies prefer spodumene-sourced lithium hydroxide for sustainability reasons
Chemical Plant designed to rely on low carbon power sources in North Carolina
Carolina Lithium will operate under U.S. labor, environmental and safety standards
Strong Financial Results Expected from Low Estimated Operating Costs
BFS indicates results of NPV8 (after tax) of $2.0 billion and post-tax IRR of 27%
BFS estimated steady-state EBITDA[2] of $459 million over the first 10 years of operations
Projected steady-state LiOH cash costs of $3,657/t and AISC of $4,377/t for the first 10 years
Opportunities for Further Economic Upside
Stronger lithium pricing – current spot prices point toward higher EBITDA than BFS projections with indicative after tax $4.5bb NPV8 and 50% IRR using spot price modeling[3]
Conversion of additional ore reserves and new mineral resources consistent with Piedmont’s strong track-record through continued exploration of the Carolina Tin Spodumene Belt
Continued evaluation of possible Phase 2 LiOH expansion using SC6 sourced from Piedmont-affiliated companies
EXECUTIVE SUMMARY
Piedmont’s Carolina Lithium Project is uniquely positioned to benefit from its highly favorable location in Gaston County, North Carolina, with exceptional infrastructure, a deep local talent pool, low-cost energy, and proximity to local markets for the monetization of by-product industrial minerals. The Study reflects more conservative costing assumptions than prior studies, with recent inflationary pressures having a substantial impact on both capital expenditures and operating costs. These cost impacts are partially offset using lithium pricing assumptions based on the more positive outlook incorporated in the consensus estimates described herein. Summary results of the Study are shown below.
The competitive advantage of Carolina Lithium’s unique location is depicted in the following lithium hydroxide cost curve, which was prepared by Roskill, a leading lithium industry consultancy.
Figure 1 – Lithium hydroxide 2028 AISC cost curve (real basis) (Roskill) for Carolina Lithium BFS Production Case[4]
AISC includes all direct and indirect operating costs including feedstock costs (internal AISC), refining, corporate G&A and selling expenses.
Industry Leading Sustainability Profile
Carolina Lithium is expected to have a superior sustainability profile relative to current lithium hydroxide producers in China and South America. Chinese lithium producers are highly reliant on coal-fired power and generally utilize a carbon-intensive sulfuric acid roasting process to convert raw materials shipped in from Australia, while South American producers tend to utilize vast tracts of land and large quantities of water, all in the driest desert in the world, the Atacama.
Figure 2 – Life cycle analysis of key carbon intensity, water usage, and land footprint of Carolina Lithium[5][6]
United States Market Dynamics
2021 has been a transformative year for electrification in the United States. Current and forecasted battery manufacturing capacity now exceeds 500 GWh with public announcements of over $25bb in capital investments to occur by 2025. Based on an average requirement of 960 t of lithium hydroxide per GWh of manufacturing capacity the resultant U.S. demand for lithium hydroxide could exceed 460,0000 t/y by 2027, dramatically exceeding the current development plans of domestic lithium companies.
Figure 3 – Operating, Under Construction, or Announced U.S. Battery Manufacturing Capacity
Strong Estimated Financial Results with Potential for Extended Operational Life
The BFS prioritizes the production of the Company’s newly defined Probable Ore Reserves, which are calculated based upon compliance standards promogulated by the Joint Ore Reserve Committee (“JORC”) and those standards recently adopted by the United States Securities and Exchange Commission (SEC) via its rules issued under Regulation S-K, Item 1300. Following exhaustion of the Company’s Ore Reserves, chemical plant feed is assumed to be supplemented with ore obtained via the Company’s equity-backed offtake agreements or other spodumene concentrate purchased from the market.
The production target outlined in the BFS is limited to the Company’s Probable Ore Reserves. Table 1 summarizes the financial outcomes of the BFS Ore Reserves production scenario.
Table 1: Summary BFS Financial Outcomes
Unit
Ore Reserves Production Scenario
Operational Life
Lithium Hydroxide Plant Operation Life
years
30
Ore Reserve Life
years
11
Financial Performance
Average annual steady state EBITDA – first 10 years
Average annual steady state EBITDA – life of operations
$mm/y
$346
Average annual steady state after-tax cash flow – first 10 years
$mm/y
$296
Average annual steady state after-tax cash flow – life of operations
$mm/y
$244
After tax Net Present Value (“NPV”) @ 8% discount rate
$mm
$2,041
After tax Internal Rate of Return (“IRR”)
%
27%
The BFS emphasizes an initial production target of 11 years of spodumene concentrate to be processed at the Company’s chemical plant which will be located adjacent to mining operations. The BFS incorporates assumptions of additional lithium hydroxide production sourced from equity-backed offtake agreements, discussed below, which allow the Company to secure spodumene from alternate sources, increasing the chemical plant life to 30 years.
Multi-Asset Business with Upside Potential
Strategic investments in logistically advantaged, high quality spodumene projects have transformed Piedmont Lithium in 2021 from a single project company to a multi-jurisdictional business with access to spodumene concentrate from multiple sources.
Piedmont Lithium holds a 25% equity interest in Sayona Quebec and North American Lithium along with a 50% offtake right to spodumene concentrate produced by Sayona Quebec on a life-of-mine basis.
Additionally, Piedmont Lithium has an earn-in right to acquire a 50% interest in Atlantic Lithium’s Ghanaian project portfolio including the Ewoyaa Project. Along with this equity earn-in right Piedmont holds a 50% offtake right to spodumene concentrate produced by Atlantic Lithium on a life-of-mine basis.
Offtake rights provide Piedmont Lithium the flexibility to extend the operational life of Carolina Lithium, or to increase lithium hydroxide production capacity through construction of a Phase 2 Lithium Hydroxide Conversion Plant.
The Company expects to publish additional technical studies in 2022 evaluating potential expansion cases for Phase 2 Lithium Hydroxide Operations.
Figure 4 – Piedmont holds spodumene concentrate offtake rights along with project investments in multiple jurisdictions
Fully Integrated Manufacturing Campus
Carolina Lithium contemplates a single, integrated site, comprising quarrying, spodumene concentration, by-products processing, and spodumene conversion to lithium hydroxide. There are currently no such integrated sites operating anywhere in the world, and the economic and environmental advantages of this strategy are compelling:
Premier location in Gaston County, North Carolina – “the cradle of the lithium business”
Integrated site eliminates unnecessary SC6 transportation costs and truck movements
Electric powered conveyors eliminate mine trucks, reduce noise, dust and diesel-based CO2 emissions
On-site solar complex to power concentrate operations
Potential to co-locate downstream battery materials, Li-ion battery manufacturing, and by-product customers
Creation of up to 500 permanent manufacturing, engineering, and management jobs (Phase 1)
Figure 5 – Site plan for the planned permit area of the Phase 1 30,000 t/y Carolina Lithium operations
“We are exceedingly pleased with the results of the BFS for the Carolina Lithium Project, which we believe confirm the Project’s industry-leading sustainability profile as well as exceptional economics while incorporating the substantial capital and operating cost inflation experienced during 2021.
We will soon commence detailed engineering for the Project with a view to a final investment decision in 2022. We are actively engaged in project financing discussions, including possible debt finance via the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing loan program, and potential strategic equity investments via the partnering process being coordinated by our financial advisors.
An important priority for 2022 will be the evaluation of expansion opportunities incorporating the spodumene concentrate assets we control in Quebec and in Ghana. Our ambition is to build America’s largest lithium hydroxide business, and the spodumene resource base we’ve assembled during 2021 should underpin substantial growth.”
Keith D. Phillips, President and Chief Executive Officer
CAROLINA LITHIUM 30,000 T/Y BANKABLE FEASIBILITY STUDY
Piedmont’s fully integrated Carolina Lithium Project’s Bankable Feasibility Study (“BFS”) is based on the Company’s Mineral Resource estimate reported in October 2021, of 44.2 Mt at a grade of 1.08% Li2O and the by-product Mineral Resource estimates comprising 7.4 Mt of quartz, 11.1 Mt of feldspar and 1.1 Mt of mica reported in June 2021. This announcement is intended to alert investors to the conversion of 18.3 million metric tons of previously categorized spodumene Mineral Resources (undiluted basis) to Probable Ore Reserves and to report the results of technical study of the production of battery grade lithium hydroxide from these Ore Reserves and other sources.
The BFS emphasizes an initial Ore Reserves only production target of 11 years of spodumene concentrate to be processed at the Company’s chemical plant which will be located adjacent to mining operations. The BFS incorporates assumptions of additional lithium hydroxide production sourced from offtake agreements which allow the Company to secure spodumene from alternate sources, increasing the chemical plant life to 30 years. Table 2 summarizes project outcomes under the BFS.
There remains significant opportunity to increase the operational life of Carolina Lithium beyond 11 years by conversion of existing mineral resources to ore reserves or by discovery of additional resources within the TSB within a reasonable trucking or conveying distance to the proposed concentrator.
Table 2: BFS Summary Outcomes for the Carolina Lithium Project
Unit
Ore Reserves Scenario
LiOH Conversion Plant Production
Operation life
years
30
Steady-state annual lithium hydroxide production
t/y
30,000
Metallurgical recovery
%
91
Life of project battery quality LiOH production
kt
883
Mine Production
Ore Reserves production scenario
years
11
Average steady state SC6 production
t/y
242,000
Average steady state quartz production
t/y
252,000
Average steady state feldspar production
t/y
392,000
Average steady state mica production
t/y
28,000
Life-of-Mine (“LOM”) Production
Production target – run-of-mine ore
Mt
20.1
LOM SC6 production
Mt
2.6
LOM quartz production
Mt
2.7
LOM feldspar production
Mt
4.2
LOM mica production
Mt
0.3
LOM feed grade (excluding dilution)
%
1.10
LOM average concentrate grade
%
6.0
LOM average process recovery
%
77
LOM average strip ratio
waste:ore
11.6:1
Operating Costs – Steady-State Production – First 10 Years
Average LiOH production cash costs
$/t
$3,657
Average LiOH production all in sustaining costs
$/t
$4,377
Average SC6 production cash costs
$/t
$234
Operating Costs – Average Life of LiOH Conversion Operations
Average LiOH production cash costs
$/t
$6,235
Average LiOH production all in sustaining costs
$/t
$6,559
Average SC6 supply cost
$/t
$687
Table 2: BFS Summary Outcomes for the Carolina Lithium Project
Average annual steady state EBITDA – first 10 years
$mm/y
$459
Average annual steady state EBITDA – life of operations
$mm/y
$346
Average annual steady state after-tax cash flow – first 10 years
$mm/y
$296
Average annual steady state after-tax cash flow – life of operations
$mm/y
$244
After tax Net Present Value (“NPV”) @ 8% discount rate
$mm
$2,041
After tax Internal Rate of Return (“IRR”)
%
27%
Payback from start of operations
years
3.5
Updates from Prior Studies
The BFS represents a significant advancement in project definition compared with the Company’s previously announced Scoping Study update announced in June 2021. Estimate accuracy has been improved between June and December 2021 from ±35% to ±15%. Significant changes have occurred in lithium market conditions and product pricing, while inflationary pressures have contributed to increases in estimated project capital and operating costs.
Table 3: Comparative Outcomes of BFS and June 2021 Scoping Study Update
The results of the BFS incorporate expertise and input from multiple industry experts and consultants of the Company. A Technical Report Summary (TRS) of the BFS will be filed prior to the release of the Company’s next quarterly filing, currently anticipated by the end of February 2022, which would allow the Company to express Ore Reserves in accordance with JORC and S-K 1300 standards.
Table 4: BFS Consultants
Consultant
Scope of Work
Primero Group Americas Inc.
Concentrate operations and overall BFS integration
Metso Outotec
Lithium hydroxide manufacturing technology package; LiOH pilot testwork
SGS Canada Inc.
Concentrate and byproducts metallurgical testwork
Marshall Miller and Associates
Mine design and scheduling; estimation of Ore Reserves
McGarry Geoconsulting Corp.
Mineral Resource estimation
HDR Engineering, Inc.
Permitting, environment, and social studies
Johnston, Allison, and Hord
Land title and legal
Benchmark Mineral Intelligence
Lithium products marketability
John Walker
By-products marketability
Feasibility Study Overview
Piedmont holds a 100% interest in the Carolina Lithium Project located within the Carolina Tin-Spodumene Belt (“TSB”) and along trend to the Hallman Beam and Kings Mountain mines, which historically provided most of the western world’s lithium between the 1950s and the 1980s. The TSB has been described as one of the largest hard rock lithium regions in the world and is located approximately 25 miles west of Charlotte, North Carolina.
The Company has previously reported a global Mineral Resource estimate (“MRE”) for the Project of 44.2Mt grading at 1.08% Li2O. As of the date of our most recent 10-K filing, Piedmont has completed 599 drill holes on these properties totaling 88,185 meters to date spanning five drill campaigns. The BFS[13] only considers mining of the company’s Core Property and results in the conversion of approximately 18 million tons of previously categorized Indicated Mineral Resources to Probable Ore Reserves.
The Project is located in a rural area of Gaston County, North Carolina, USA approximately 25 miles northwest of the city of Charlotte. As of October 31, 2021, the Project comprised approximately 3,245 total acres, of which 1,526 acres are claims on private property through option or deferred purchase agreements, 113 acres are under a long-term mineral leased agreement, 79 acres are under lease to own agreements, and 1,527 acres are owned by Piedmont. For the properties hosting the Mineral Resources in this report, Piedmont controls 100% of the surface and mineral rights per one or more agreement scenarios.
On August 31, 2021 Piedmont submitted a mine permit application to the North Carolina Department of Environmental Quality’s (“NCDEQ”) Division of Energy, Minerals and Land Resources (“DEMLR”) covering 1,548 acres of the Project’s total land package. Ore Reserves are inclusive of tons within the mine permit application. Additionally, ore reserves and mine planning summarized in this announcement include a smaller portion of tons contained within currently controlled properties which are anticipated to be permitted and mined via future permit boundary revisions. Additional property acquisitions, the costs of which are included in BFS financials, would allow permit boundary revisions to capture these additional reserve tons. In addition to further property acquisitions which are needed to expand permit boundaries, the project will require additional waste storage volume which is not currently included in the permit application. The Company currently controls tracts of land which are contiguous to the permitted areas that could be utilized for additional waste material storage without sterilizing reserves as expressed in this BFS.
The BFS supplements production of the Company’s Ore Reserves with ore secured via interests and offtake agreements with Sayona Quebec and Atlantic Lithium. As part of the BFS financial modelling, the Company and its Consultants confirmed the economic viability of its controlled Ore Reserves absent the impact of offtake tonnages. Further details are included in the announcement’s appendix.
Figure 6 – Piedmont’s Carolina Lithium Project located within the TSB
Mineral Resource Estimates
On October 21, 2021 the Company announced an updated MRE prepared by independent consultant McGarry Geoconsulting Corp. (“McGarry Geo”) in accordance with the U.S. Securities and Exchange Commission’s Regulation S-K, Item 1300 (“S-K 1300”) and the JORC Code (2012 Edition). The total lithium Mineral Resources reported by Piedmont for the Carolina Lithium Project are 44.2 Mt grading at 1.08% Li2O.
Table 5: Carolina Lithium Project – Summary of Mineral Resources Estimate at October 20, 2021
On October 21, 2021 the Company announced updated MREs for by-products quartz, feldspar, and mica. The results are shown in Table 6. The by-product MRE’s have been prepared by independent consultants, McGarry Geo and are reported in accordance with requirements of S-K 1300 and the JORC Code (2012 Edition). The economic extraction of by-product minerals is contingent on Piedmont’s economic extraction of lithium Mineral Resources. Accordingly, the by-product Mineral Resource estimates are reported at a 0.4% Li2O cut-off grade, consistent with the reported lithium MRE.
Table 6: Carolina Lithium Project – Summary of By-Product Quartz, Feldspar, and Mica Mineral Resources
Li2O
Quartz
Feldspar
Mica
Cut-Off Grade (Li2O %)
0.4
0.4
0.4
0.4
Metallurgical Recovery (%)
71.2
50.8
51.1
35.5
Category
Deposit
Tonnes (Mt)
Grade
(%)
Tonnes (Mt)
Grade
(%)
Tonnes (Mt)
Grade
(%)
Tonnes (Mt)
Grade
(%)
Tonnes (Mt)
Indicated
Core
25.75
1.10
0.282
29.59
7.62
45.06
11.60
4.29
1.10
Central
2.47
1.30
0.031
28.79
0.71
45.16
1.12
3.24
0.08
Huffstetler
0.00
0.00
0.000
0.00
0.00
0.00
0.00
0.00
0.00
Total
28.22
1.11
0.313
29.52
8.33
45.07
12.72
4.20
1.18
Inferred
Core
10.93
1.02
0.111
29.13
3.18
45.52
4.97
4.18
0.46
Central
2.69
1.10
0.030
29.99
0.81
43.88
1.18
4.08
0.11
Huffstetler
2.31
0.91
0.021
28.82
0.67
48.60
1.12
3.24
0.08
Total
15.93
1.02
0.162
29.22
4.66
45.67
7.28
4.03
0.64
MRE Total
44.15
1.08
0.475
29.42
12.99
45.30
20.00
4.12
1.82
Ore Reserves
An estimate of Ore Reserves was made following detailed mine planning completed during the BFS and is based on the Indicated Mineral Resources contained within the Project’s Core Property. The Ore Reserves have been estimated in accordance with the requirements of S-K 1300 and the JORC Code. Section 4 of Table 1 of the JORC Code appear in the Appendices to this announcement.
The Qualified and Competent Persons responsible for the derivation of Probable Ore Reserves have considered pertinent modifying factors, inclusive of geological, environmental, regulatory, and legal factors, in converting a portion of the Mineral Resource to Mineral Reserve. Probable Ore Reserves, derived from previously stated Indicated Mineral Resources, incorporate reasonable expectations of costs and performance. Historic mining ventures in the TSB yield additional confidence in the likelihood of a successful mining project. The Qualified and Competent Persons have considered the rules and regulations promulgated by the Joint Ore Reserve Committee and US Securities and Exchange Commission in estimating Ore Reserves. The Qualified and Competent Persons find the assumptions and modifying factors utilized for the BFS to be sufficient and satisfactory in the delineation of Probable Ore Reserves based upon JORC and S-K 1300 regulations.
Ore Reserves Classification Criteria
All converted Mineral Resources were classified as Probable Ore Reserves. There were no Measured Mineral Resources defined that could be converted into Proven Ore Reserves and no Inferred Mineral Resources were included in the estimation of Ore Reserves.
Ore Reserves Cut-Off Parameters
Cutoff grade of 0.4% Li2O was used in creation of the block model supplied by McGarry Geoconsulting Corp.
Ore Reserves Mining Factors
An open pit mining method was selected due to the ore body outcropping in several places along the surface. No other mining method was evaluated as part of the Ore Reserves estimation.
Mine design parameters include overburden batter angle in unconsolidated material of 27 degrees, face batter angle of 75 degrees, inter-ramp slope of 57 degrees, overall slope of 51 degrees, berm width of 9.5 meters, berm height working 12 meters, berm height final wall of 24 meters, ramp width of 30 meters, ramp grade of 10%, mine dilution of 10%, process recovery of 77%, and minimum mining width of 50 meters.
Ore Reserves Metallurgical Factors
In 2019, Piedmont engaged SGS Canada Inc. in Lakefield, Ontario to undertake testwork on variability and composite samples. Dense Medium Separation (“DMS”) and locked-cycle flotation tests produced high-quality spodumene concentrate with a grade above 6.0% Li2O, iron oxide below 1.0%, and low impurities from composite samples.
In 2021, Piedmont engaged SGS Canada Inc. in Lakefield, Ontario to undertake testwork on nine variability samples. Samples were produced from drill core from the East and South pits and represented the early years of production (i.e., the first 10 years of operation). The samples generally contained elevated levels of host rock dilution (ranging from 9.4% to 17.3%) as compared to the mine plan average (10%). DMS and batch and locked-cycle flotation tests were undertaken. Based on the historical testwork and the 2021 variability program, the BFS assumes a spodumene recovery of 77.0% for a diluted head grade of 0.996% Li2O when targeting a 6.0% Li2O spodumene concentrate product.
Ore Reserves Revenue Factors
The BFS assumes a fixed price of $18,000/t for battery quality lithium hydroxide and $900/t for spodumene concentrate (SC6).
Ore Reserves Cost Factors
Capital costs include estimates for infrastructure development including roads, electrical power delivery and distribution, water sources for plant and dust control and initial site development based on contractor responses to requests for proposal based on BFS level engineering.
Operating costs were established using budget pricing from mining contractors based on a request for proposal issued by Marshall Miller and Associates combined with first-principles estimates for utilities including electrical service from Duke Energy.
Costs were estimated on a 2021 U.S. dollars basis in real terms. Royalties of $1.00 per ROM tonne are based on the average land option agreement.
Mining Production Target
Pit optimizations were completed by Marshall Miller & Associates in order to produce a production schedule on a quarterly basis for the first five years of operations and on an annual basis thereafter. This resulted in a total production target of approximately 2.56 Mt of 6.0% Li2O spodumene concentrate (“SC6”), averaging approximately 242,000 t/y of SC6 over the 11-year ore reserve life. This equates to a steady state average of 1.90 Mt/y of ore processed, totaling approximately 20.1 Mt of run-of-mine (“ROM”) ore at an average fully diluted ROM grade of 1.0% Li2O (diluted) over the 11-year ore reserve life.
The BFS assumes concentrate operations production life of 11 years (matching ore reserves) and chemical plant operations life of 30 years, commencing in year 1 of the Project. It is assumed that concentrate operations including by-products will commence about 90 days in advance of chemical plant start-up to build initial SC6 inventory. Produced SC6 which exceeds chemical plant capacities are assumed to be sold to third parties during the life of the Project. Of the total production target of 2.56 Mt of SC6, approximately 0.56 Mt will be sold to third parties during the operational life and approximately 2.0 Mt will be supplied to Piedmont’s chemical plant operations for conversion into lithium hydroxide.
The Study assumes production targets of 2.68 Mt of quartz concentrate, 4.17 Mt of feldspar concentrate, and 0.30 Mt of mica concentrate over the life of operations based on the potential recovery of these products from the concentrator flotation circuits and the Company’s analysis of domestic industrial minerals markets and engagement with prospective customers.
There remains significant opportunity to increase the operational life of Carolina Lithium beyond 11 years by conversion of existing mineral resources to ore reserves or by discovery of additional resources within the TSB within a reasonable trucking or conveying distance to the proposed concentrator. Reserves delineated as part of the BFS only consider the Company’s Core Property and are predominately limited to those tons which are captured by current permit applications. Significant upside exists via the potential future conversion of other resources to reserves, the impact of which is not captured in the BFS economics.
Chemical Plant Production
The lithium hydroxide plant is assumed to operate for 30 years, with 2.0 Mt of SC6 delivered from Carolina Lithium’s concentrate operations from years 1-11 and 3.9 Mt of SC6 delivered from third party spodumene concentrate purchases from years 12-30, resulting in a total production target of approximately 883,000 tonnes of battery quality lithium hydroxide, averaging approximately 29,400 t/y of lithium hydroxide over the 30-year production life.
Third party purchases of spodumene concentrate may include procurement of SC6 from Sayona Quebec, where Piedmont Lithium holds offtake rights to the greater of 113,000 t/y or 50% of SC6 production on a life-of-mine basis. SC6 may also be delivered from Atlantic Lithium, where Piedmont Lithium holds a 50% offtake right, currently forecasted as 147,500 t/y SC6 production for life-of-mine. The BFS project financials do not capture potential financial gains from Piedmont’s equity interests in Sayona Quebec or Atlantic Lithium.
Mining Optimization
Independent consultants Marshall Miller and Associates used Maptek Vulcan and Evolution to generate a series of economic pit shells using the updated Mineral Resource block model and input parameters as agreed by Piedmont. Overall slope angles in rock were estimated following a preliminary geotechnical analysis that utilized fracture orientation data from oriented core and downhole geophysics (Acoustic Televiewer), as well as laboratory analysis of intact rock strength. The preliminary geotechnical assessment involved both kinematic and overall slope analyses utilizing Rocscience™ modeling software.
Overall slope angles of 27 degrees were assumed for overburden and oxide material. Overall slope angles of 51 degrees were estimated for fresh material which includes a ramp width of 30 meters. Production schedules were prepared for the Project based on the following parameters:
A targeted run-of-mine production of 1.9 Mt/y targeting concentrator output of about 242,000 t/y of SC6
Mining dilution of 10%
Mine recovery of 100%
Concentrator processing recovery of 77%
Mine sequence targets utilized Proven and Probable reserves for the schedule
The results reported are based upon a scenario which utilizes extraction of Probable reserves from property currently under mine permit application filed with NC DEMLR and additional controlled tonnes which are anticipated to be added to the permit following additional property acquisitions. These tonnes are currently excluded from the permit due to geometric constraints and offset requirements, but are anticipated to be permitted in the future. Table 8 shows the production target.
Table 8: Total Production Target for Piedmont Properties
Property
ROM Tonnes Processed
(Mt)
Waste Tonnes Mined
(Mt)
Stripping Ratio
(W:O t:t)
ROM Li2O Undiluted Grade (%)
ROM Li2O Diluted Grade (%)
Production Years
Tonnes of SC6
(Mt)
Core
20.09
232.52
11.58
1.10
0.996
1-11
2.57
Central
0
0
0
–
–
–
0
Huffstetler
0
0
0
–
–
–
0
Total
20.09
232.52
11.58
1.10
0.996
1-11
2.57
Production Schedule
A mine design has been prepared based on delivery of ore reserves to the spodumene concentrator. The open pit design incorporates the production schedule on a quarterly basis for the first five years and then annually for the remaining life of mine. Access ramps, ramp widths, conveyor passes, batter angles, berm widths, berm heights, mine permit limits, zoning permit requirements, and jurisdictional buffers from flood zones, streams and wetlands not permitted for disturbance were all incorporated into the mine design.
Table 9: Mine Production Schedule by Time Period
Yr.
Qtr.
ROM Production (MT)
Undiluted Grade (% Li2O)
Diluted Grade (% Li2O)
Probable Tonnes (MT)
SC6 Product (kT)
Quartz Product (kT)
Feldspar Product (kT)
Mica Product (kT)
0
0
–
–
–
–
–
–
–
–
1
1
0.24
1.22
1.11
0.24
35.2
35.6
54.7
3.5
1
2
0.24
1.07
0.97
0.24
29.7
36.0
55.3
3.6
1
3
0.24
1.20
1.09
0.24
35.0
36.4
55.9
3.6
1
4
0.24
1.20
1.09
0.24
35.0
36.4
55.9
3.6
2
1
0.47
1.25
1.14
0.47
71.5
70.2
107.8
7.0
2
2
0.47
1.20
1.09
0.47
67.9
71.0
109.0
7.1
2
3
0.48
1.11
1.01
0.48
62.0
71.7
110.2
7.1
2
4
0.48
1.01
0.91
0.48
54.7
71.7
110.2
7.1
3
1
0.47
1.02
0.93
0.47
54.8
70.8
108.7
7.0
3
2
0.47
1.14
1.03
0.47
63.3
70.8
108.7
7.0
3
3
0.48
0.98
0.89
0.48
52.4
71.5
109.9
7.1
3
4
0.48
1.13
1.03
0.48
63.8
71.5
109.9
7.1
4
1
0.47
1.07
0.97
0.47
57.9
70.2
107.8
7.0
4
2
0.47
1.00
0.91
0.47
53.8
71.0
109.0
7.1
4
3
0.48
1.07
0.97
0.48
59.0
71.7
110.2
7.1
4
4
0.48
1.01
0.92
0.48
54.7
71.7
110.2
7.1
5
1
0.47
1.05
0.96
0.47
56.6
70.2
107.8
7.0
5
2
0.47
1.07
0.97
0.47
58.4
71.0
109.0
7.1
5
3
0.48
1.17
1.06
0.48
66.4
71.7
110.2
7.1
5
4
0.48
1.22
1.11
0.48
70.3
71.7
110.2
7.1
6
1-4
1.90
1.12
1.02
1.90
250.3
284.6
437.2
28.3
7
1-4
1.90
1.04
0.94
1.90
225.1
284.6
437.2
28.3
8
1-4
1.90
1.06
0.97
1.90
233.4
284.6
437.2
28.3
9
1-4
1.90
1.07
0.97
1.90
235.7
284.6
437.2
28.3
10
1-4
1.90
1.13
1.02
1.90
251.5
284.6
437.2
28.3
11
1-4
1.90
1.14
1.03
1.90
254.7
284.6
437.2
28.3
12
1
0.15
1.06
0.97
0.15
18.3
22.3
34.3
2.2
Life of Mine
20.09
1.10
1.00
20.09
2,571.4
3,012.7
4,628.1
299.4
Metallurgical Testwork
Concentrate Metallurgy
In 2019, Piedmont engaged SGS Canada Inc. in Lakefield, Ontario to undertake testwork on variability and composite samples. Dense Medium Separation (“DMS”) and locked-cycle flotation tests produced high-quality spodumene concentrate with a grade above 6.0% Li2O, iron oxide below 1.0%, and low impurities from composite samples.Table 10 shows the results of composite tests on the preferred flowsheet (previously announced on July 17, 2019). The feed grade of the composite sample was 1.11% Li2O.
Table 10: 2019 Dense Medium Separation and Locked Cycle Flotation Test Concentrate Assays
Sample
Li2O
(%)
Fe2O3
(%)
Na2O
(%)
K2O
(%)
CaO+ MgO +
MnO (%)
P2O5
(%)
Dense medium separation
6.42
0.97
0.56
0.45
0.51
0.12
Locked-cycle flotation
6.31
0.90
0.68
0.52
1.25
0.46
Combined concentrate
6.35
0.93
0.63
0.49
0.96
0.32
In 2020, a pilot plant testwork program was undertaken at SGS Canada Inc. A 54-t bulk outcrop sample from the Carolina Lithium Project was processed through a DMS and flotation pilot plant. Using the optimized results from the flotation pilot plant, the combined DMS and flotation concentrates graded >6% Li2O and <1% Fe2O3 with lithium recoveries >70%. Optimized testing on the master composite sample resulted in lithium recovery of 82% and concentrate grading 6.13% Li2O.
In 2021, Piedmont engaged SGS Canada Inc. in Lakefield, Ontario to undertake testwork on nine variability samples. Samples were produced from drill core from the East and South pits and represented the early years of production (i.e., the first 10 years of operation). The samples generally contained elevated levels of host rock dilution (ranging from 9.4% to 17.3%) as compared to the mine plan average (10%). DMS and batch and locked-cycle flotation tests were undertaken. Table 11 shows the composition of the nine variability samples and combined (DMS and flotation) concentrate grades and spodumene recoveries which were estimated based on feed mineralogy.
Table 11: 2021 Variability Testwork Results
Pit
Variability Sample
Feed
Combined Concentrate
Li2O
(%)
Fe2O3
(%)
Li2O
(%)
Fe2O3
(%)
Est Spodumene Recovery (%)
East
Early Flat 1
1.05
2.01
6.00
1.11
74.7
Early Flat 2
0.99
1.80
6.16
0.92
73.2
Early Steep
1.12
1.92
6.36
1.11
82.2
Late Flat
0.69
1.89
6.10
0.92
74.9
Late Low-grade
0.69
1.85
5.67
1.06
67.2
Extension High-grade
1.05
1.40
5.84
1.14
81.5
Extension Low-grade
1.01
1.81
5.81
1.10
67.4
South
Lower Flat
1.01
2.00
5.74
0.95
75.4
Upper Steep
1.10
2.25
6.05
1.59
79.3
Based on the historical testwork and the 2021 variability program, the BFS assumes a spodumene recovery of 77.0% for a diluted head grade of 0.996% Li2O when targeting a 6.0% Li2O spodumene concentrate product.
By-Product Metallurgy
The production of bulk quartz and feldspar concentrates as by-products from the spodumene locked-cycle flotation tailings was investigated. Six individual batch tests were conducted with the quartz and feldspar concentrates being composited. The results of these tests are provided in Table 12 (results previously announced May 13, 2020). Additional by-product testwork in conjunction with BFS is ongoing.
Piedmont engaged North Carolina State University’s Minerals Research Laboratory in 2018 to conduct bench-scale testwork on samples obtained from the Company’s MRE within the Core Property for by-products quartz, feldspar, and mica. The objective of the testwork program was to develop optimized conditions for spodumene flotation and magnetic separation for both grade and recovery. Summary mica concentrate data are shown in Table 13. Complete mica data were previously announced on September 4, 2018. Further mica product optimization is in progress in conjunction with the BFS.
Mica quality is measured by its physical properties including bulk density, grit, color/brightness, and particle size. The bulk density of mica by-product generated from Piedmont composite samples was in the range of 0.680 – 0.682 g/cm3.
The National Gypsum Grit test is used mostly for minus 100 mesh mica which is used as joint cement compound and textured mica paint. Piedmont sample grit results were in the range of 0.70 – 0.79%, well below the typical specification for total grit in mica of 1.0%. Color/brightness is usually determined on minus 100 mesh material. Several instruments are used for this determination including the Hunter meter, Technedyne and the Photovoltmeter. The green reflectance is often reported for micas and talcs. Piedmont Green Reflectance results were in the range of 11.2 – 11.6.
Quartz and feldspar concentrates were produced during the 2021 Variability program at SGS Canada Inc. Batch flotation tests were operated to produce feldspar concentrate with the flotation tailings passed through wet high-intensity magnetic separation to produce quartz concentrate. Table 14 and Table 15 show assays for the feldspar and quartz concentrates produced from optimized variability batch tests.
In 2021, Piedmont engaged Metso Outotec to undertake pilot plant testwork using their proprietary Lithium Hydroxide Process. The spodumene concentrate sample used was produced during concentrator pilot plant operation in 2020. 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.
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 h 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 195,000 t/y of SC6 will be required to produce 30,000 t/y of battery quality lithium hydroxide. Based on Metso Outotec’s estimate, the BFS study assumes 91% lithium conversion through the lithium hydroxide conversion plant.
Process Design
The concentrator process design is based on historical testwork including the 2021 variability testwork program. Lithium hydroxide manufacturing process design is based on pilot plant results and Metso Outotec experience. The simplified process flow diagram for the Project is shown in Figure 7.
A detailed site plan including mining operations, concentrate operations, lithium hydroxide manufacturing, overburden and waste rock disposal, by-product manufacturing and ancillary facilities was developed by Marshall Miller and Primero Group in connection with the Project’s mine permit application submitted in August 2021. This plan is expected to be modified as additional properties are acquired in order to execute the mine plan as expressed in the BFS. Most notably, the BFS assumes that tonnes contained between external property boundaries and pit extents, currently constrained by permitting offset requirements, are mined as additional properties are acquired. Also, a secondary waste pile, located on currently controlled property, is not included in the current permit application but is needed to develop the reserves as shown in the BFS. Staged permitting is a common practice and should not be considered abnormal for a mining venture of this magnitude. Figure 8 shows the proposed mine permit plan for the proposed integrated manufacturing campus.
Figure 8 – Proposed integrated manufacturing campus site plan
Navisworks models have been completed for the lithium hydroxide conversion operations (Figure 9) and spodumene concentrate facilities (Figure 10) to a BFS level of detail. Further optimization of the proposed layouts will be completed during front-end engineering design.
Figure 9 – Carolina Lithium 30,000t/y lithium hydroxide conversion facilitiesFigure 10 – Carolina Lithium spodumene and byproducts concentrator with integrated LiOH plant in background
Infrastructure
Piedmont enjoys a superior infrastructure position relative to most lithium projects globally. The proposed site is approximately 25 miles west of Charlotte, North Carolina. The site is directly accessible by multiple state highways, CSX railroad, and is in close proximity to U.S. Highway 321 and U.S. Interstate I-85.
Piedmont’s proposed Carolina Lithium operations are in proximity to four (4) major US ports:
Charleston, SC, 197 miles
Wilmington, NC, 208 miles
Savannah, GA, 226 miles
Norfolk, VA, 296 miles
Charlotte-Douglas International Airport is 20 miles from the proposed operations. Charlotte-Douglas is the 6th largest airport in the United States and has direct international routes to Canada, the Caribbean, South America, and Europe.
Temporary or permanent camp facilities will not be required as part of the Project. Furthermore, Livent Corporation and Albemarle Corporation operate lithium chemical plants in close proximity to the proposed Piedmont operations, and the local region is well serviced by fabrication, maintenance, and technical service contractors experienced in the sector.
Logistics
Most spodumene concentrate produced by Piedmont will be consumed by the Piedmont Carolina Lithium chemical plant. For internal transportation costs within the integrated campus, the cost to operate the belt conveyors connecting the concentrator and chemical plant are carried in the concentrator operating costs. Products are assumed to be shipped from site via truck.
Permitting
HDR Engineering has been retained by Piedmont to support permitting activities on the proposed Project.
In November 2019, the Company received a Clean Water Act Section 404 Standard Individual Permit from the US Army Corps of Engineers for the concentrate operations. This is the only federal permit required for the concentrate operations. The Company has also received a Section 401 Individual Water Quality Certification from the North Carolina Division of Water Resources. In connection with the 404 Permit an Environmental Assessment was completed for the Project which resulted in a Finding of No Significant Impact (“FONSI”).
The concentrate operations require a North Carolina State Mining Permit from the North Carolina Department of Environmental Quality (“NCDEQ”) Division of Energy, Mineral and Land Resources (“DEMLR”). The Company submitted a mine permit application to DEMLR on August 31, 2021. A public hearing in relation to the mine permit application was held on November 15, 2021. The Company has received additional information requests in connection with the mine permit application and is preparing a written response.
Piedmont previously received a Clean Air Act Title V synthetic minor permit from the NCDEQ Division of Air Quality for a proposed lithium hydroxide operation in Kings Mountain. Piedmont plans to apply for a new air permit for the Carolina Lithium integrated operations upon completion of the BFS.
Carolina Lithium remains subject to local rezoning and permit requirements. Piedmont remains in pre-application consultation with Gaston County at this time. A rezoning application will follow receipt of mine and air permits. The Company will apply for a special use permit required under the Gaston County UDO upon completion of the rezoning process.
The following environmental studies have been completed in connection with the Project (Table 16).
Table 16: List of Completed Environmental Background Studies for the Project
Study Description
Author
Date of completion
Jurisdictional Delineation
HDR Engineering
April 2019
Threatened and Endangered Species Survey
HDR Engineering
December 2018
Roadway Abandonment Technical Memo
HDR Engineering
March 2019
Cultural Resources Survey
HDR Engineering
April 2019
Static Groundwater model
HDR Engineering
June 2019
Summary of Waste Rock and Process Tailings Geochemical Assessment
Marshall Miller & Associates
August 2019
Addendum Report – Results of Humidity Cell Leaching Tests
Marshall Miller & Associates
December 2019
Water Quality Testing
HDR Engineering
March 2020
Dynamic Groundwater Model
HDR Engineering
August 2021
Toxicity Testing of the Lithium Hydroxide Conversion Plant Tailings
HDR Engineering
August 2021
Acid Base Account and Toxicity Characteristics Leaching Procedure Test Results Summary, and Proposed Mitigation Plan Associated with Potentially Acid Producing Waste Rock in the Southern East Pit
Threatened and Endangered Species Survey – Additional properties
HDR Engineering
November 2021
Marketing
Lithium Market Outlook
Benchmark Mineral Intelligence (“Benchmark”) reports that total battery demand will grow to 346 GWh in 2021 translating to 339kt of LCE demand in 2021, a growth of 51% over 2020 demand. Benchmark forecasts total demand in 2021 to be 473kt on an LCE basis.
Benchmark further expects the market to remain in a structural deficit (see Figure 11) for the foreseeable future as demand gets a head-start on supply. In the near impossible scenario that all projects come online on time as planned and without any issues, the first surplus will not occur until 2025. Benchmark believes that in this extreme case, a surplus could only be expected to last a few years before demand forces the market into a large deficit without further new projects yet undiscovered or developed.
The Company analyzed recent battery-grade lithium hydroxide and SC6 prices from Benchmark, JPMorgan and Macquarie for the period 2022-2025 as well as price forecasts recently announced by other lithium project developers.
Table 17: Price Forecasts for Battery-Grade Lithium Hydroxide ($/tonne)
Forecast
2022
2023
2024
2025
Benchmark Minerals
$20,600
$26,200
$25,200
$20,900
JPMorgan
$26,625
$22,500
$19,737
$18,420
Macquarie
$21,275
$20,415
$18,545
$17,540
Based on these and other data this Study assumes long-term pricing of $18,000/t for battery quality lithium hydroxide and $900/t for spodumene concentrate for the life of the project. Figure 12 compares the pricing used in the BFS to historical China pricing for lithium hydroxide.
As shown in Figure 13 below North America is seeing considerable growth in battery plant capacity. Figure 14 below shows the corresponding lithium hydroxide demand for the announced U.S. battery plant capacity at full production.
Figure 13 –Current battery plants operating, under construction or announced in the United StatesFigure 14 –LiOH Demand for Select U.S. Giga-Factories
Market Strategy
Piedmont is focused on establishing strategic partnerships with customers for battery grade lithium hydroxide with an emphasis on a customer base which is focused on EV demand growth in North America and Europe. Piedmont will concentrate this effort on these growing EV supply chains, particularly in light of the growing commitments of battery manufacturing by groups such as Ford, General Motors, Stellantis, Toyota, LGES, SK Innovation, Samsung SDI and others. Advanced discussions with prospective customers are ongoing.
By-Product Marketing
Piedmont proposes to produce quartz, feldspar and mica as by-products of spodumene concentrate operations. The Company engaged John Walker, an independent consultant, and Pronto Minerals, a joint venture between the Company and Ion Carbon & Materials, to assist the Company in estimating market opportunities for its by-products as shown in Table 18 below.
Table 18: Market Forecasts and Basket Pricing for By-Products ($/t)
Quartz (t/y)
Feldspar (t/y)
Mica(t/y)
Average Realized Price ($/t) Mine Gate
252,000
392,000
28,000
$69.70
Operating Cost Estimates
Spodumene Concentrate Operating Cost Estimate
The SC6 operating cost estimate was prepared based on operating at approximately 1.90 million t/y run-of-mine ore producing an average of 242,000 t/y of SC6. Table 19 summarizes the estimated operating costs at steady-state. Costs are presented on an FOB chemical plant basis. Analcime by-product from lithium hydroxide manufacturing is assumed to have zero credit value.
The operating cost estimate was prepared based on producing 30,000 t/y of lithium hydroxide monohydrate. Table 20 summarizes the estimated average operating costs for lithium hydroxide production over the life of mining operations and when using third-party spodumene concentrate.
Table 20: Chemical Plant Cash Operating Cost Summary
The operating cost estimate is based on Q4 2021 U.S. dollars with no escalation. Target accuracy of the operating cost estimate is ± 15%. Operating costs are based on steady-state production. The average operating costs include the commissioning and ramp-up phases of both concentrate operations and chemical plant operations. Third party SC6 sales are not included in the by-product credits.
During years 12-30, the chemical plant operations pay market price for spodumene concentrate either delivered CIF to the port of Charleston, South Carolina, or to DAP to Carolina Lithium’s rail siding in Cherryville, NC.
Operating costs assume that Carolina Lithium employs contract mining services.
Figure 15 – Lithium hydroxide production average steady state cash cost first 10 years
Capital Cost Estimate
Table 21 highlights the total estimated capital expenditures for the Project. Variable contingency has been applied to project costs based on the level of engineering definition completed and the confidence level of supplier and contractor quotations. The capital cost estimate has a ±15% accuracy and is based on Q4 2021 costs.
Table 21: Estimated Capital Costs
Cost Center
Total Capital Costs ($ mm)
Mining
$81
Concentrator
$162
Byproducts
$45
Lithium hydroxide conversion plant
$408
Project indirects
$99
Owner’s costs
$73
Total Initial Capital (excluding contingency)
$867
Contingency
$120
Total Development Capital
$988
Deferred, working and sustaining capital
$351
Project Schedule
An integrated schedule was prepared as part of the BFS. The level 1 summary schedule is presented in Figure 16. For the purposes of financial modeling construction of the Carolina Lithium Project is assumed to commence at the start of Q3 2022. Project approvals including a state mining permit, rezoning, air permit, and special use permit are required before construction activities can commence on the 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.
The BFS project economics include the following key parameters related to royalties, tax, depreciation, and depletion allowances:
Royalties of $1.00 per ROM tonne based on the average land option agreement
Current 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
Depletion allowance of 22% is applied to the spodumene concentrate and mica sales prices. For spodumene concentrate used internal to the Carolina Lithium operations a transfer price equal to the market price has been used to calculate depletion.
Depletion allowances for quartz and feldspar concentrates are 14% within the financial model
Depreciation in the concentrate operations is based on Asset Class 10.0 – Mining in IRS Table B-1 using the general depreciation system (“GDS”) over 7 years with the double declining balance method
Depreciation in the chemical 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
BFS Economics
Modeling Assumptions
A detailed project economical model was completed by the Company 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 monthly basis, including estimated cash flow for construction activities and project ramp-up
Mine scheduling was prepared on a quarterly basis for the first five years of operations, and annually thereafter.
Pricing information for battery-grade lithium hydroxide sales and spodumene concentrate supply are based on a fixed price of $18,000/t for battery quality lithium hydroxide and $900/t for 6.0% Li2O spodumene concentrate
Royalties, tax, depreciation, and depletion allowances according to stated assumptions
Financial Modelling
A comprehensive economic model has been prepared which fully integrates the Carolina Lithium Project including concentrate and chemical operations. The Study assumes a chemical plant production life of 30 years commencing 3 months after the start of mining operations. The chemical plant operates using self-supplied spodumene concentrate for the first 11 years of operations followed by market procurement of SC6 from year 12, including potentially from offtake sources currently controlled by or contracted with Piedmont. The mining production target is approximately 20.1 Mt at an average run of mine grade of 1.0% Li2O (fully-diluted) over an 11-year ore reserve life. The overall life of chemical plant operations is 30 years.
The current economic model is based on a monthly projection of capital costs and assumes that the full capital cost is spent across 21 months prior to commissioning of the concentrate operations and across 24 months prior to the commissioning of the chemical plant. Concentrate operations are assumed to ramp to full production over a one-year period and the chemical plant is also assumed to ramp to full production over a one-year period.
Payback Period
Payback periods for the Project constructed in a single phase is 3.5 years after the start of chemical plant operations or 5.5 years from the start of construction. Payback period is calculated on the basis of after-tax free cash flow.
Sensitivity Analyses
The concentrate operations and chemical plant components of the Study have been designed to a BFS level of detail with an intended accuracy of ± 15%. Key inputs into the Study have been tested by pricing, capital cost, and operating cost sensitivities. The impact to after tax net present value is presented in Figure 17 while impact to project IRR is presented in Figure 18. Additionally, applying discount rates of 7% and 9% resulted in NPV7 of $2,360mm and NPV9 of $1,768mm.
Figure 17 – Net present value sensitivity analysis for the Carolina Lithium ProjectFigure 18 – IRR sensitivity analysis for the Carolina Lithium Project
Conclusions and Next Steps
The Study results demonstrate the potential for Carolina Lithium to become a major North American lithium hydroxide producer on a fully integrated spodumene mine to lithium hydroxide chemical plant basis. The Company will now concentrate on the following initiatives to drive the Project forward:
Complete an expanded Scoping Study to define a Phase 2 lithium hydroxide operation using partner sourced spodumene concentrate
Continue evaluation of environmentally sensitive issues for incorporation in mine planning
Undertake bridging and optimization engineering activities and launch FEED engineering
Selection of EPC contractor for execution of the Project
Respond to additional requests for information from DEMLR and continue to advance mine permit approvals
Complete and submit a new air permit application for the proposed 30,000 t/y Carolina Lithium Project
Engage in further pre-application consultation with Gaston County in advance of rezoning and special use permit application submittals
Complete formal submission of the Company’s Advanced Technology Vehicle Manufacturing program loan application
Continue to evaluate opportunities to add quality assets to the Company’s portfolio
Evaluate strategic partnering options in partnership with Evercore and JP Morgan
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources and Proven and Probable Ore Reserves
The information contained herein by Piedmont has been prepared in accordance with the requirements of the securities laws in effect in the United States and Australia. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are used herein as defined by the U.S. Securities and Exchange Commission (“SEC”) in Regulation S-K, Item 1300 (“S-K 1300”) and as defined in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). The terms “Ore Reserves”, “Proven Ore Reserves”, and “Probable Ore Reserves” are used herein as defined by the U.S. Securities and Exchange Commission (“SEC”) in Regulation S-K, Item 1300 (“S-K 1300”) and as defined in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”).
Competent Persons and Qualified Persons Statements
The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled or reviewed by Mr. Lamont Leatherman, a Competent Person and Qualified Person, who is a Registered Member of the ‘Society for Mining, Metallurgy and Exploration’, a ‘Recognized Professional Organization’ (RPO). Mr. Leatherman is an employee of the Company. Mr. Leatherman has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Leatherman’s credentials also allow him to satisfy the requirements of a Qualified person in accordance with the United States Securities and Exchange Commission’s Modernization of Property Disclosures. Mr. Leatherman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to lithium Mineral Resources is extracted from our announcement entitled “Piedmont Increases Mineral Resources with Completion of Phase 5 Infill Drilling dated October 22, 2021. This announcement is available to view on the Company website at www.piedmontlithium.com. Piedmont confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcements; b) all material assumptions and technical parameters underpinning the Mineral Resources in the original announcements continue to apply and have not materially changed; and c) the form and context in which the Competent/Qualified Person’s findings are presented in this announcement have not been materially modified from the original announcements.
The information in this announcement that relates to Metallurgical Testwork Results is based on, and fairly represents, information compiled or reviewed by Dr. Jarrett Quinn, a Competent and Qualified Person who is a Registered Member of Ordre des Ingénieurs du Québec’, a ‘Recognized Professional Organization’ (RPO). Dr. Quinn is a consultant to Primero Group Americas Inc. Dr. Quinn has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ and a Qualified Person under S-K 1300 standards. Dr. Quinn consents to the inclusion in the report of the matters based on information in the form and context in which it appears.
The information in this announcement that relates to Process Design and Operating Costs is based on, and fairly represents, information compiled or reviewed by Mr. Andrew Siemon, a Competent and Qualified Person who is a Registered Member of the ‘Australian Institute of Mining and Metallurgy’, a ‘Recognized Professional Organization’ (RPO). Mr. Siemon is a full time employee of Primero Group Americas Inc. Mr. Siemon has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ and a Qualified Person under S-K 1300 standards. Mr. Siemon consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Capital Costs and Financial Analysis is based on, and fairly represents, information compiled or reviewed by Mr. Stephane Normandin, a Competent and Qualified Person who is a Registered Member of ‘Ordres des Ingenieurs du Quebec’, a ‘Recognized Professional Organization’ (RPO). Mr. Normandin is a full time employee of Primero Group Americas Inc. Mr. Normandin has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ and a Qualified Person under S-K 1300 standards. Mr. Normandin consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Mining Engineering, Mining Schedule, Mining Costs & Ore Reserves is based on information compiled by Mr. Chris Scott and reviewed by Dr. Steven Keim, both of whom are employees of Marshall Miller and Associates (MM&A). Dr. Keim takes overall responsibility as Competent and Qualified Person for the portions of the work completed by MM&A. Dr. Steven Keim is a Competent Person who is a Registered Member of the ‘Society for Mining, Metallurgy & Exploration Society’, a ‘Recognized Professional Organization’ (RPO). Dr. Keim has sufficient experience, which is relevant to the style of mineral extraction under consideration, and to the activity he is undertaking, to qualify as Competent Person in terms of the JORC Code (2012 Edition) and a Qualified Person under S-K 1300 standards. Dr. Keim has reviewed this document and consents to the inclusion in this report of the matters based on his information in the form and context within which it appears.
Forward Looking Statements
This announcement may include forward-looking statements. 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. Forward-looking statements in this release include, but are not limited to, statements with respect to risks related to:
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 an exploration 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 Ghana as well as properties that Piedmont may acquire or obtain an equity interest in the future;
completing required permitting, zoning and re-zoning activities required to commence mining and processing operations for the Carolina Lithium Project;
Piedmont’s ability to achieve and maintain profitability and to develop positive cash flows from Piedmont’s mining and 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; and
Piedmont’s failure to successfully execute Piedmont’s growth strategy, including any delays in Piedmont’s planned future growth.
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.
Based on the assumptions made as part of the Carolina Lithium Project’s BFS announcement dated December 14, 2021. EBITDA defined as earnings before interest, taxes, depletion, depreciation, and amortization. Indicative NPV and IRR of the Carolina Lithium Project when applying current spot prices as reported by Fastmarkets on 12/03/21 of $31,000/t for LiOH and $2,300/t for SC6 for pricing assumptions in the project’s financial model.
Based on the assumptions made as part of the Carolina Lithium Project’s BFS announcement dated December 14, 2021. EBITDA defined as earnings before interest, taxes, depletion, depreciation, and amortization. Indicative NPV and IRR of the Carolina Lithium Project when applying current spot prices as reported by Fastmarkets on 12/03/21 of $31,000/t for LiOH and $2,300/t for SC6 for pricing assumptions in the project’s financial model.
Based on the assumptions made as part of the Carolina Lithium Project’s BFS announcement dated December 14, 2021.
EBITDA defined as earnings before interest, taxes, depletion, depreciation, and amortization.
Indicative NPV and IRR of the Carolina Lithium Project when applying current spot prices as reported by Fastmarkets on 12/03/21 of $31,000/t for LiOH and $2,300/t for SC6 for pricing assumptions in the project’s financial model.
Carolina Lithium AISC presented based on December 2021 BFS results showing Piedmont’s steady-state AISC during the first 10 years of operations. All other costs shown based on Roskill May 2021 cost curve but assuming $900/t SC6 input costs for Merchant Converters to match BFS pricing assumptions. ↑
Water scarcity values published by AWARE and available at wulca-waterlca.org/aware/ LCA results previously announced on June 9, 2021 ↑
Atlantic Lithium and Sayona are spodumene projects in which the Company has equity interests and offtake agreements ↑
References to $ in this announcement are United States Dollars. ↑
Due to rounding the capital costs as presented do not add to $988mm ↑
Spodumene concentrate production in the BFS is a production target based solely on Ore Reserves, prior studies established production targets based on Indicated as well as Inferred Mineral Resources. There remains significant opportunity to increase the operational life of Carolina Lithium beyond 11 years by conversion of existing mineral resources to ore reserves or by discovery of additional resources within the TSB ↑
Steady-state cash costs of LiOH production during years 3-10 using SC6 sourced from Carolina Lithium ↑
Steady-state cash costs of SC6 production at Carolina Lithium at a BFS level from years 3-10 ↑
Average annual EBITDA during years 3-10 of operations. The average annual EBITDA life of chemical plant is $346mm ↑
The Terms “Feasibility Study” and “Bankable Feasibility Study” are defined and/or referred to by the JORC Code (2012 Edition) and the SEC adopting for release S-K 1300. With regards to both JORC and SEC rules, feasibility studies are intended to support the economic viability of Ore Reserves via a detailed engineering and financial analysis. The Bankable Feasibility Study in which this announcement relates includes assumptions pertaining to the production of lithium reserves currently controlled by the Company and processing of purchased spodumene concentrate from other entities. As such, the term “Feasibility Study” as referred to in this announcement presents a business case which includes costs and revenues associated with reserve and non-reserve material. With regards to assumptions related to the production of the company’s Ore Reserves, all engineering and financial analysis aligns with the requirements of JORC and SEC rules to meet feasibility level standards. While the feasibility study and this announcement present a business model which includes non-reserve material, the Company and its consultants have completed a stand-alone analysis of the Company’s reserves to document their economic viability absent assumptions of purchased spodumene material. ↑
Overall metallurgical recovery from spodumene ore to lithium hydroxide monohydrate assumption within resource model ↑
The metallurgical recovery of ore reserves is based on 77% recovery of ore to spodumene concentrate, and 91% metallurgical recovery of SC6 to battery quality lithium hydroxide as reported in this announcement. ↑
Expenses attributable to SC6 delivered to the lithium hydroxide conversion plant for processing. ↑
After depletion of Ore Reserves the model assumes that Carolina Lithium purchases SC6 at market rates of $900/t plus $35/t inland freight costs from U.S. port to Cherryville, NC. ↑
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