Piedmont Lithium (ASX:PLL) has received a partial prepayment of US$31.6 million for a September shipment of 15,000 dry metric tons of lithium concentrate to a ‘major’ international trading company.
Piedmont, which has a $1.26 billion market capitalisation, says as production continues to ramp up, it expects to receive its full 2023 offtake allocation of 56,500 dry metric tons of lithium concentrate, with the balance to be sold by its joint venture (JV) arm.
As previously announced, the North American Lithium (NAL) project, owned in a JV between Piedmont and Sayona Mining (ASX:SYA), began commercial production in March 2023 and delivered its first JV shipment of 20,500 dry metric tons to a third party in August.
Sayona earlier this week announced its Managing Director and CEO, Brett Lynch, was stepping down from his post for personal reasons, with Non-Executive Director James Brown taking on the role of Interim CEO.
Commenting on the new prepayment, Piedmont Lithium Chief Executive Officer (CEO) and President Keith Phillips says: “This is a significant day for Piedmont Lithium as we announce the first shipment of lithium concentrate under our offtake agreement with NAL and the receipt of a prepayment, which significantly increases our cash position.
“we expect sales from Piedmont shipments to help fund our strategic initiatives while reducing our need to raise equity in the market“
We look forward to the additional Piedmont shipments and JV shipments planned for 2023, and we expect sales from Piedmont shipments to help fund our strategic initiatives while reducing our need to raise equity in the market.
Additionally, we acknowledge the board-level changes of our partner, Sayona Mining (ASX:SYA). We would like to thank Brett Lynch for his vision, which enabled Piedmont and Sayona Mining to successfully acquire and restart the NAL operations, and we look forward to continued success as we welcome James Brown as the interim CEO of Sayona Mining.”
Piedmont notes that the partial prepayment has increased the company’s cash position to roughly US$100 million.
Piedmont Lithium is a lithium company situated in the US. The company’s portfolio of assets includes the Carolina and Tennessee lithium projects, alongside its partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium (ASX:A11).
Write to Aaliyah Rogan at Mining.com.au
Images: Piedmont Lithium
