Piedmont Lithium (ASX:PLL) has set a new record from production at the North American Lithium (NAL) Mine, during the second quarter of this year.
During the second quarter, NAL produced 49,700 tonnes of spodumene concentrate, representing a 23% increase from the previous quarter. Lithium recovery and mill utilisation also achieved new highs of 68% and 83%, respectively.
Piedmont Lithium, which has a market capitalisation of $261.51 million, shipped 14,000 tonnes of spodumene concentrate in the second quarter, with a realised price per tonne of $945, compared to $865 per tonne in the first quarter of this year.
The company’s revenue totals $13.2 million on sales during the second quarter.
As of 30 June 2024, Piedmont Lithium has $59 million in cash at hand, according to its latest quarterly report.
CEO Keith Phillips says NAL continues to show its potential as an asset, achieving steady-state production and exhibiting future promise with new drilling results and completing the crushed ore dome.
“In the second half of 2024, we expect to sell the majority of our 2024 NAL offtake, prioritising contract customers and structuring spot shipments to limit our downside exposure,” Phillips says.
“Capital allocations and investments in affiliates are anticipated to be modest given the completion of the NAL ramp-up and expected timing of Ewoyaa development.”
For the remainder of this year, Piedmont Lithium expects to ship 96,500 tonnes of spodumene concentrate, resulting in 126,000 tonnes in total shipments for 2024.
Meanwhile, following the receipt of the Carolina lithium state mining permit in the second quarter of this year, the company has consolidated its US project development strategy to deploy capital and technical resources more efficiently, and leverage its foundational North Carolina Project.
As part of the company’s strategy, Piedmont Lithium plans to shift the proposed Tennessee Lithium conversion capacity to Carolina Lithium to include two lithium hydroxide trains constructed in a phased approach.
The company currently has an air permit application under review with North Carolina’s division of air quality that will allow for up to 60,000 tonnes per year of lithium hydroxide production.
Phillips says given the prevailing market realities, the company has taken steps to ensure its long-term competitive position and preservation of the upside of its assets.
“These steps include the decision to consolidate our US lithium hydroxide development strategy by moving our planned Tennessee Lithium conversion capacity to Carolina Lithium,” he says.
“The receipt of the mining permit in Q2 has made Carolina Lithium the focus of our US development and allows us to actively engage with potential strategy partners interested in a project-level investment.
“These conversations, as well as those related to the Ewoyaa offtake-partnering process, have been positive, and we look forward to their continuation.”
Piedmont Lithium is focused on developing its multi-asset, integrated lithium business to enable the transition to a net zero world and create a clean energy economy in North America.
Write to Aaliyah Rogan at Mining.com.au
Images: Piedmont Lithium
