PLL - Earnings call transcript Q1 2024

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Erin Sanders

Please go ahead. Thank you, operator, and good morning, everyone. Welcome to Piedmont Lithium's First Quarter 2024 Earnings Call.

Joining us today from Pinot Lithium are Keith Phillips, President and Chief Executive Officer, who will provide the introductory remarks. Michael White, Chief Financial Officer, will then review our financial results followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our projects. closing we provide live to then session. Q&A will commentary transition before a Keith

today's contain statements in to discussion to reminder, differ release cause a As will and results actual in and caveats. that to that today's the and earnings company's future from forward-looking filings. expectations are included assumptions our subject these SEC various materially Factors may are events relating statements presentation,

comparable Reconciliations Please as have and turn we measures non-GAAP financial to copies and over found on the be included note references directly earnings today's Phillips. the slide release release presentation. to addition, be as In call presentation. With well in in our that, that in I'll the most tons EBITDA are to Any shipments EBITDA. financial concentrate tons. today and of means presentation GAAP lithium to replay earnings website, www.piedmontlithium.com. Further, can available metric measures will reference call of a this our this Keith metric today's discussion adjusted are our to dry appendix

Keith Phillips

Thanks, First XXXX Call. Aaron, us for all Quarter Earnings Piedmont for and you today thank Lithium's joining

reiterate start for be to only today. U.S.-based I at As Piedmont one will and story. Piedmont production is Lithium these to lithium in those of new X mission the do I calls, quickly of like you may companies our strategy of who and our

North be American vehicle resources leading of to chain. the is supply a mission Our electric supplier to lithium

national assets rock processing and that Piedmont's is or further efforts interest. have spodumene producing our strengthen for an which to we materials reliance own security. reduce economic upon eventually concentrate Our strategy our nations goal critical hard is is from in production, support foreign and we based on and U.S. to energy

path with first, of production. the receipt managing is evaluating $XX And on North non-dilutive is nicely really now doing permit. and front morning savings great Ewoyaa very is on achieve Lithium track pleased continued center quarter, we first you'll The on. Lithium effectively through record we with about operation in points cost We're the is and process, is that American the that team key Turning the the options. are: with mining to lastly, are a million hear that Carolina to first in ramping the job. our we're and focused approvals costs, state quarter. keeping we're funding progressing annual identified the this

a XXXX our thinking the shaping up rest outlook as two Finally, halves for Lithium. I Piedmont is the and year of highlight year, to for of that of wanted

As progress we half transitioned from start the to our core will than second and half year.Shifting let's shipments talking was less American affirm at record the shipments second levels review North venture spodumene to and could the Piedmont a is really an we this operating the performance, operation Sayona lithium and about The fortunate operations spending of the on work the to more costs. expected get operation quarter and joint America moved double year pricing first costs. safety and and increase the trajectories toward a of the customers partners, to and heavily largest an completion, of half record up have operational spending side, in which of The was first tribute half projects the at to capital both first by the we truly first the invested production and slide to investment under ramp-up are quarter Key achieved North XXXX. in result team weighted North half. Lithium the be we in continued. strong American agreements, record the in great spodumene production year Piedmont entire quarter of in Mining capital to the than exceptional to second half production the of a XXXX, our that operation Lithium. long-term performed Furthermore, expected expect the first such a producing quarter the in If direction of the Quebec. of now reduction recoveries X, what production, of in quarterly

made we back that more term. that's underscores second will NAL in NAL an future optimistic the expected our quarter half us. is half a Piedmont for life-of-mine will levels shipments of for the offtake We for of been of agreement at most absolute Reduction shareholders guidance asset believe are asset ship I core NAL, production for Michael about XXXX, excitement tons remarks.So the long in the the year. which Inflation Act, with year, our past with qualified our from XXX,XXX of our achieved be talk weighted will Quebec just to full that progress IRA And as the run in expect about be to the supporting this material, rate great favorable shipments his

receipt mining Lithium, gating Caroline permit obviously a significant state achieved. to the of item shifting the in was Now milestone

operations. been with years state state's the had for the working meets to exceptionally high for X.X project standards the development team make Our sure of

But and XX,XXX-ton-a-year both been cradle the Carolina much that strategic we the highly is key was first lithium foundation working portfolio.Caroline situated industry which to as Belt. as Arcadium, same Tin well mining Carolina a along hydroxide in we've integrated founded, haven't the that the development believe project lithium this the in the resource earnings project our Spodumene of of is Albemarle about Lithium the calls, while X talked Piedmont on our key I project permit. upon it's While in was Lithium

American X, North the and U.S. Lithium energy electric proximity distances, in the many project producer at the of transportation or hydroxide located and is The under to is contributor heart concentrate as of project. planned.The be we Page aren't a studies, of a low expect belt advantages Caroline with vehicle technical spodumene industrial some low-cost excellent of for that compelling. be cathode key on deep Based the those with project highlight minimal and should construction Looking battery of the chain. supply benefit familiar mineral from a Carolina should EV to Lithium the pool economics talent Carolina the local and plants growing including in by-products. to battery markets for local also infrastructure, costs, lithium

Act royalties returns what offered Carolina matters, the absence the tax As is countries project, a value-added the and of in of tax China. U.S.-based tax are we and corporate like assessed customer of to the XXXX are income the competitive from expected and benefit U.S., resources, should significant After absence the in government better lower regime deep from in that rates. not royalty loan and of of supportive benefits programs markets aware Energy's Department and of significant any spodumene Inflation jurisdiction program. the tax Carolina the as ATVM benefit combines such Reduction also

funding far. some technical this the to a battery to lot interest leverage had government combination program, the offtake mentioned, could of capital in we reduce project, capital, burden.We've strategic by at manufacturers companies, variety are loan Looking our support this intend of as and encouraged funding potential via and who had ATVM a investors provide we've project partners of and thus conversations from car

to take strategic some for processes As time the ATVM timing, partnering complete. loan and

maximizing But refining also moving is right. judiciously highly important state strategic for be the and it's Piedmont. fast, the the Piedmont Caroline always be Carolina of and line in the right more County we'll entire on North value for States. United time we'll of Lithium our to of focused for cognizant it and than re-zoning It's doing to strategic as do frankly, the Gaston funding We're this and highly to So advance shareholders project. we do it process.

the spodumene Let's Ghana is April turn permitting Lithium team meeting our own development continues advance an Team with were to is the and good had across project well sessions the joint Patrick receipt large our its additional our Ghana leadership as opportunity assets positioned in We believe growth and Lithium. interest. and capacity, our given the in Carolina or producer with of driven multiple all Right briefly in capital. and approvals interesting product a term process.Ewoyaa be to mine of to in Piedmont We've relatively project, for low dilution by of to financial through with minimizing will and Piedmont a and to time evaluating the operating expected project, options we some and we and downstream of economics, project long fully the technical line opportunities mention lithium Ewoyaa. our with an cost. us venture received Atlantic Tennessee parties, inbound the on Lithium the It's project Tennessee assist evaluating process adviser is share we're attractive capital CapEx high which XX,XXX of want production. also calls for tons from permitted idea for to funding retaining to our offers have to a for relatively partners permit. going be I shareholders. now, designed great portfolio low expand a hydroxide be at Atlantic with return invested the

more in with provide dilution. detailed of projects development plan each shareholder is Our always a of the discussion. strategically with will these X Michael their invest to and goal minimizing

over that, to with turn it Michael. I'll So

Michael White

a the adjusted with Lithium, $X.X effect to million and lesser severance This of investments cost first price million plan sale revenue, Turning capital Notably, savings $XX.X defer Including costs. initiated a operating quarter for in to million XXXX. these of a associated shipped GAAP related ended much a to to achieve to cost Adjustments compares per adjustments, XXXX recognized loss share. per our first other or quarter million per we of to was quarter per $X.XX $X.X quarter of of and slide tax our of the our XX,XXX costs method $XXX. we and loss annual a extent, savings our tons net metric first equity on Mining and $XX cash, a with quarter, review gain cost $X.X I'd severance-related first share. we realized quarter high-level in $X.XX the spending quarter the million dry adjustments $XX.X associated $XX.X of in We metric net or a like these included ton In the ton. $XX.X Sayona reported loss metric X, million provide securities, million in cost with and million million this $XXX in savings results. Atlantic in approximately equity to realized plan, $XX.X resulting

expect to achieve a adjustment to as our shipped shipments We final earned million of during majority in between we delayed and were quarter shipment and to December spot in pricing $XXX,XXX of of slide $X lithium savings in which part XX, in quarter. the quarter customer spot Included was The first related revenue originally were were the majority to the congestion. depart but due positive our the to experienced scheduled the the to revenue of quarter $XX.X we double-digit and improved of to growth related XXXX.Turning result January tons a November a the settlement shipment. X shipment of revenue weather first the as end prices to of cost January during of tons, the date the shipment approximately as million port

supply working Our quarter during a the capital of customer our quarter. was the January realized for review reflected agreement and higher smaller to I'd significantly cash shipment second like to and slide customer than our spot shipment.Turning XX, part balances a price long-term

align these during during communicated $XX rights. our for the period. paid significantly with Sayona balance beginning improved selling respectively. joint flat Atlantic shares venture our million. relatively million million approximately Our and portion cash February holdings million, call $XX.X capital our and and strategy quarter quarter monetizing We We position $XX.X sales positions these in for holdings net our or These at had impact were in working in our Mining as of a offtake $XX.X on in million assets. ownership Further, of by of no $XX equity sales our prior for bolstered Lithium quarter entire by the noncore fourth during the cash proceeds our We ending years.

a XX, the current to was concentrate settle of spodumene right million liabilities sales across payments have price I'm we made our slide prepayment of Under outlook. tons offtake to was categories, where notable XXXX the production. than primarily we $XX metric to improvements we related less agreement of settlement cash saw decline the spot annual with XX% While to Quebec, discuss XXXX to the our final provisional Sayona several in greater or the pleased XXX,XXX most received.Moving

but our was in mentioned As earlier, XXXX. spot January into shipment scheduled rolled XXXX, over

to current requirements the on of year. As factors, XXX,XXX second deliveries. timing Note including may impact we expect result, the ship ship tonnage logistics our a shipping in plan now customers, Based we the and majority approximately customer of discussions our that tons XXXX. half to with this of

see For in more XXXX capital half in compared expenditures first to a we the of advances decrease of and affiliates, of second to to year. and half expect investments as the XX% than the

relate Lithium contributions to Carolina continued Ewoyaa Our to advances for of and cash in advances Atlantic investments projects, to Lithium while Tennessee wholly advancement Lithium Quebec and expenditures the primarily capital forecasted reflect owned affiliates Sayona our project. to and

As always, to review our Patrick in outlook project changes turn updates. I'll it With is to of and conditions. current operations market over a Brindle subject for that,

Patrick Brindle

update Thanks, turn an Michael. for now can on operational NAL. to We XX slide

March job rate. NAL. a The getting ramped led continued pleased team we're Sylvain through there recordable ramped Concentrate XXXX. fully also production operations has achieving has excellent production with noted, to improved has operations July steadily from done Collard, March each incident rate new quarter. Keith steadily lowest As with their the an this Safety records of by with ramp-up nearly achieved since last the success subsequent at quarterly

a quarter, dry Global XXXX XX%, metric exceeding to has QX dry third prior by XX% between XXXX record during NAL while averaged During concentrate the recovery metric XXX reached X ramp-up XX,XXX quarter, the of ahead now including XX,XXX NAL new shipments Average XX, In accepted was tons. recovery spodumene a metric tons month sold tonnes XX%. dry production XX,XXX to March, Piedmont to QX XX,XXX remainder operations tons. increased daily July March the parties.Moving records metric out XX%, XX% target record lithium the of utilization of set to deliveries of dry were with during the during achieved global from shipped XXX quarter production period. production, through of while slide mill production at the

of materially the number project been improve this the has is existing a upon rates, NAL production of and remains on underway corresponding now spodumene of dome full costs. production ore is reduction unit now second will the Lithium to into The activities tied in operating We to new commissioning XXXX. XXX,XXX to levels tonnes NAL, full as materially complete ore crushed quarter. from continued concentrate of Concluding that XXXX rate metric are dome dry Construction in and by XXXX should Ghana expect NAL June on now on project. should mill XXX,XXX the and of dome. target ramp crushed of forecasted Commissioning to move achieve to brief production to ramp-up half well operations. a July improvements management's and system utilization re-feed complete rate XXX,XXX increases sales with to run this result XXX,XXX in Ewoyaa as tons.I'll update dry-metric crusher and track a

environmental, continues leadership project's development Ewoyaa. partnering year. offtake incorporate results Ewoyaa. team DRA Work evaluating with process was the I this Lithium Lithium drill offtake also later with spodumene portion for work month, JV an optimization planning at Piedmont's requirements As also to and series is meetings wholly-owned several government and closely EPCM partnership the progress. Carolina project of a social, diligence contractor, other received of management DMS XXXX we only similar technical advancing of Atlantic brief studies portion estimate Keith concentrator Piedmont from towards is Atlantic Commission the has upgraded the and our the Atlantic Tennessee capital resource due update. projects, the the mentioned, in United a Ghana with and phase. in I'll in Ghana Ewoyaa. for the process progressed streams on offtake and with group interested together provide our of last States, to mineral for calendar mining lease.Here a now from Global work ratification into Atlantic infrastructure bids have an lithium QX, XXXX support the of is Minerals the while continues parties to In and mining

are self-sufficiency strategically lithium know, of growing the may the in battery of some America. projects level in you goal both achieving are critical belt As located to and

about own, within At has boundary. just cash comments property permit, to earlier our spoke couple Keith in-depth we As materially a cash same of from purchase make the additional permit operational worked remainder mining outside have our perspective. lease all boundary have or of of time, related exercise. of the mine the for of will We right defer our outlook the actively received of I to this receipt purchases an Carolina effort that permit sit This the newly a management to XXXX. improved properties as

as for our mining to And receipt permit turn Lithium, the the site. update Tennessee the Etowah for refine project With to Piedmont's the time the our stated, agreement hand, development options. the over Keith funding to strategy. an explore back in the our discussions McMinn this of on project With and we're continuing of with at mining in concludes continue of our Tennessee community, receipt portfolio. Carolina update with that, City of plans it project context for with in local global and the Keith renew will funding permit.That on County we engage line we're Over state I'll and market option the Lithium evaluating

Keith Phillips

lithium the quarter that market. I'd like sales of presentation first Thank There's as in experienced a EV were In up XX%, market are with the imploding year same true. global sales some that about XXXX, not simply to you, Patrick. our a conclude thoughts is and the the EV ago. increase market narrative the

announced would showing continued of lot end minerals have While their imagine softness XXXX a year-over-year XX% in key year-on-year and are the April story, chemical global and are this some see results to in is U.S., there's increases. Several who markets. CEOs a love growth there been I OEMs and

a period sales Ford historically record reached XX%, in high on prices marked ago. year from up and lithium. same grew increase to X all-time an EV monthly years from last the we goes year. Volvo XXX% for ago, sales a EV on.Moving list had Kia slide XX% XX, the

come prices down have began those recovery. know, sharply, you February, As around but some we see to

Over weeks, news us by to last spodumene concentrate a supplier. XX%, is have X concentrate as obviously prices the good which XX risen spodumene for

greenfield most prices We and prices continue believe required recover that well are the of are world's as the below develop incentive to projects. current hopeful levels we fund to lithium

again away As in third is in If fast-growing Lithium a linear seems years a I'm be young, believe Piedmont's just I deploying XX beneficiary. experienced I and strong XX to at we've think leverage lithium or see we a from the over XX, before. to market an graph, reaching the Inevitably, growth, industry. I least you this lows supply for expect The more will experienced to some like time as XXXX the be continue the curve into highlight cyclicality we've past decade. contango volatility than will the lithium rise, time capital can highs prices in want opportune demand-growth if prices. be direct right, and to in forward leaving is sector.Moving slide maturity. possible rise to is the

biggest a through As cost the you offtake have NAL producing of actually really prices our we to something. and more you're North material ceiling. to rising America's only or leverage if know, subject you half agreement, spodumene get producer is

sheet million we're the $XX fortified key Carolina year. permit. should directly the XX, good to in impact checked savings received noncore and on exiting the profit.Lastly, some company with identified We track for of and lithium our we page balance cost catalysts X investments, this We in So outlined far gross on XXXX, so we're any the first making for by prices quarter. our boxes some mine progress our improvement we've achieve

and report government and key funding X on and but further advancing at quarters, agencies improvement with production is areas: key in on will costs subsequent continued our focusing Ewoyaa in and U.S. We for focus unit progress parties. really in Carolina volumes strategic NAL

your maximize portion shift to value level.That Thank As minimizing there while our and concludes to is attention. call. Q&A. at presentation of corporate long-term time always, Piedmont the dilution the We'll equity the for priority for you shareholders

Operator

session. We question-and-answer now begin Instructions]. will the [Operator

first of David Your line from question comes of the Cowen. Deckelbaum TD

David Deckelbaum

wanted balance you can your ship maybe of the overview. inform Thanks us the tie today Or is and give pricing for that there have for the remarks just we're the your offtake that rest some just Is partners stuff to some the and seeing for what the date market that prepared start this rest of I to and are shipments better your more on relative how of offtake micro Keith, on the expectations gone to index as what to year. sort any the some of you back of to maybe for of the partners? what contrasting might the the to to go-forward year year pricing. color

Keith Phillips

all spot you first our the As know, were evolved market during XXXX. in the spot shipments market, and

So to being we cases of convention, kind were months, based in been up were ended some really prices had or rapidly. receiving pricing X post-delivery kind of the falling which the to shipment difference X in That M+X date. opposed X, on at receive as or pricing

it had a and big So, us some on others. impact

one are, the reference different. lagged case, on go it of In I little a contracts price, based but it they're basis. lags more the on they're traditional based case, is and the another prices concentrate market on a is based them, the specifics are on Our hydroxide and into won't price

will backward I or and with now would actually what or next reverse forward as you having Certainly, be look smoother. the two lags three, fallen And with will see negatively So, hopefully, by lags right prices going forward, into is in think the pricing things. early that from impacted XXXX XXXX. that going those be month we

are back customer requirements this year. ended really Our

will steady In you some that's and have into and shipments evolving still the a later things As in other market considerably considering have than spot the earlier, year. more approach spot year. I half, month have We the the through more so or something be second in partly we're you'd unique months we'll experienced seen, It two had this of think this the that better market, just shipments pricing some those spot achieved shipments, see being as or build probably there is we well. from half see last as been X may X people, market, to on.

David Deckelbaum

talking obviously you application I is Carolina the a fully pursuing, an Tennessee. discussed from you're perspective, just Tennessee ATVM permitted. strategic know wanted for to shift I think, that gears, Loan I

see You to I pursue coincident financing then you upstream a FID or Lithium Carolina well project Ewoyaa, that funding you requirement integrated back options come just only? intention talked about sort feedstock. the options and guess for at as obviously obviously a have the up, for in do Tennessee Carolina of there vertically side. with least but Or a be was plan would Ewoyaa upstream Can to to with feed that online as

Keith Phillips

is. right of a at time was for now what for got received. line the them large, U.S. be two thinking develop the us wouldn't both large us We're to about development and the mine It point with really projects. it's for Yes. That the projects to permit prudent a They're try achievement team, capital massive simultaneously. big

about Tennessee So its and has that own body. significant sequentially. advantage ore we'll Carolina be thinking a it has over obviously that doing

benefits location, a around North in location it It's Carolina. belt. we've is as project by not strategic the surrounded people The same on great and that great spodumene people a had Carolina, in Tennessee customers. with is infrastructure, A lot but So exceptional. conversations Tennessee of great around

own bringing material and we've of Carolina on spodumene relies spot from together that savings right are everything contemplated site it on imported substantial. be the doing pretty cost benefits has So to and Ghana. its

for have applied an ATVM on we application an formerly that an Tennessee. Tennessee. had when put that we on for ATVM hold we loan We for at proceeded submitted Loan So Carolina

the no transport average that's all the which the $X either existing a indirectly costs directly think being, is just make China be weeks or where plants, the only convey to it's is. these its interesting. close on Carolina, conversion the is world, being of around But material involved around concentrate It We the will will months from a same involved is it's who's to ton. Carolina, you and And ore economics of a just We've about America. plant what sending customer we're here site, into cadence NAL. $XXX site at on savings. coming in the the the there will We be projects send in massive plant gotten for this same ours project may a material to the because again, When going well, project. there's the meets do planet and certainly, a as own to the chemical on same formal has a the excited the becomes superior are There capacity Quebec. be. VAT very your communication really thing developing site it doing body concentrate the to the the ton North decision spodumene about nowhere in time but in where because really NAL chemical plant facility, mine. but about In a

has advantage is know, thinking there's something huge you be strategic dormant As a But partially there. facility we'll built about. that kind a a of

Operator

Your Austin line question from of from Yun comes next the Macquarie.

Austin Yun

mining share government Firstly, congratulations I'm approval again if permit. of support. funding to options. the some understand on get try just wondering you you the I color the could on some

and wondering Thank split? colors the would Just you. on be equity debt very That potential any like helpful.

Keith Phillips

funding in and those a year others. They was our an approximately ATVM We so the a total DOE several have and at corporate from the was secured the It from General were loan. package ago. level Lithium Americas. or package ago. ATVM coming loan of Motors We've at from equity friends been commitment They XX% weeks market. loan an for [indiscernible] announced had looking happy

In more like I equity total to We'd world partner would the equity. the something It's funding. funding we spodumene come the number conversations range We've in really location. target. think about would a or we'd about an on had the lot to ideal might far think located think from XX% of us, Ghana, the the a of all people getting of in we're XX% care We is into was Africa. cap, will care, capital best-located debt significant market we corporate for X be like cap We in located at coming General talk projects. they when We world. LAC-market with than best X lithium our If the at it market Canada, in with substantial a the U.S. all corporate lithium in might you level. in at NAL by the cap the project But and level. focused project level think of all our was, The something current level A-list happily do think asset of the of Carolina. people. and best rather of we asset Carolina the have brought asset far Motors, lithium come two, first what is project

are financing see. at process expedited. time, be the X-year will take from DOE can in it So ready the looking people recovery a now time XX-month lithium are the we're commented sort great to this But think lines projects I would the mean, a We'll Not and good. frankly, process. prices an in to for at has been as to be line benefit these process a of getting hopeful market up funding interested realistically The they recently, ATVM the viewing process project, but has people. XX- time right

that year, hope in together, But certainly, announcements So obviously, before later you tell. bring this will XXXX. project to time see later may development my some guess, we partnering

Austin Yun

Great.

moment, agreement assumption the different question company project. is dilution. on production? on project, working I any impact understand the I of the is funding Ewoyaa believe, for Would the is at options Just on the have minimizing you potential that around while the XX% have offtake which the potential one quick

Keith Phillips

the around Our Ewoyaa, I capital think is DFS requirements on million based $XXX for levels.

for creep So a we're budgeting there. modest CapEx

So to our agreement material. hope right, our our is offtake use is and XX% of which the for use offtake

around Atlantic a year, it's So a or mile concentrate, Ocean. XXX,XXX tons XX,XXX the from high-quality

offtake committing touch the Atlantic of obviously share to that with lot are So potential their people adviser more it's can commit value money offtake have they're and can has secure same, go announced longer, their by of in you interested an all willing material discussions, there you and depends it. how funding half more funding much upfront. material. the can money how The for material on can much the going the these a the anywhere, you're where process raise question and to do the funding we parties to We're with raise for capital commit. to the and party. of In in you

to raise So process. formally of loan. the commencing funding our be i.e., the we're and [indiscernible] something a offtake over we've to weeks for the prepaid committing adviser may had and basis, an be that a CapEx via next of inquiries, all that's customer inbound we on optimistic hiring able But several we'll kind a

next pursuing over be we'll the aggressively something that's So several months.

Operator

question of of Reagor next Joseph ROTH the Your comes MKM. line from

Joseph Reagor

would that outlook first. timing What's continuing of kind fund $XXX about a on on is a construction the a when have might current actually Ewoyaa you It There be the topic seems when your of or there. bit of million debate to occur so? there to decision out

Keith Phillips

give definitive He's funded, our until I'll just Lithium frankly, of a development To been kind we in on us get you to the $XX XX.X% exploration closer Patrick, earn He XX.X% you Board stake. share A details. or to of sold study. capital. to We've million that's need some funding small ago. the project can first comment, know, amount the the remainder. stake already a feasibility and two we in Patrick, the of brief then the to Atlantic because other by earned fund week as of of was was Ghana XX%, of the down of chime maybe in a our

attractive we're project, we because at and think we into it and a with we're a comfortable that's running great very an made, commitment level. So

being the when bit is So There's done. and target real There a little for that's required. as moving to do where of essentially, a question FID then is, engineering the of have you any you still get work still number are approvals project. it point a

second reason of the have expectation is conveyed Atlantic more wrapped year, or year.My that for not in half line the really leases, into that next be drag, it time kind in of will this time related mining and likely this any Atlantic on the they guys up those mining to and ratification it's to move and can I sense they're because think spill just hopeful the of move. government we're take et the tend you business looking never hope cases, things but some Ghana, cetera, they and things,

not So funding It's our a plant view cetera, the million place a will build take January. in where months. check out fund over you over is then in of we're likely like XX we'll and XX to write million really that might next, the month, in million X position be year in $XX time. to be to the in $XX the as first earnest, in $X It we'll et next begin half

So that's best perspective. my

Patrick Brindle

kind to don't partners That's line work really is that of which move a and of on in a project lot necessarily the people with at down that That's cetera, our forward exceptional they time et hands the a government. the mine it's we by it a working to move have it market, Atlantic, mining projects. requires an conversations a ratification collectively for operating case we funding to time can about and built are a continue still control. decision as And project. or That's I Ewoyaa investment EPA, the mine hard very CapEx taken a OpEx scale. of project The an regulatory permit, in gating approvals together of not the of minerals a are the is, further be parliament. global trying as thought, It's other the principal which characterizing get project in through partners.Just before competitive higher other to kind much commitment, can view item CapEx that all really commission, We alongside with lease the opportunity. the

from this material. So material. to get lithium and like Tennessee we it's don't from who a work. that opportunity parties built we really put have don't We to the We'd perspective, money agreement, offtake money our have to need the third return high to take

a somebody extent build of or the quite we're something the a we who to So to. to to attracted material XX,XXX have loan project. who will year needs XXX,XXX commit we It's else it, money us can tons

Joseph Reagor

you NAL, cash for mind to made, have improvements long-term spodumene the operating basis? cost the your of and ton what's guys goal guys given rate over in annual per Shifting production

Keith Phillips

Since it's a Sayona. venture operated joint by

we're to what operator sort extent, publish rely but the active follow limited we They're guidance, some on of in ahead to on fundamentally, of Joint We're Board the we're on we the venture, feasibility them. I'm definitive and and the So of provide it. did comfortable them saying a very joint Venture. to get They study.

hard costs We would optimistic that particularly levels some costs will being are completed, with that, meaningfully environment are in. think that projects will been an toward these whether inflationary levels be We production DFS capital we think we've of trend they in But achieve increase improve the will meaningfully. like that dome.

XXX,XXX DFS tons the So year. targeted a

I probably in my year own think a tons to view, exceeding something JV think the a but accomplish. XXX,XXX hopes that's I I stretch goal is think

this second half I to think that get hope to of year. the rate in we run

costs, XXX,XXX a lower quite more be competitive.We year and make the of XX%. tons it greater the or asset tonnes will unit that So at will get

own good the but for benefits more the from makes We JV much us. XX% production, the So most JV increased of that's viable. that the It to X.XX%, up JV.

So haven't I last excited a we going It announcement there's was thing up. a on see lot with One NAL. fall. about, production ramp we're but think drilling talked been to of big

announcements potential and joint is venture. a from mineral I This think large you Sayona resource. the see very future

located the and misunderstood being to the opportunity Val-d'Or. Quebec. is even resource north. pretty history the go its increases, of from rail, version some in tundra XX an increases, in reserve I Every far interesting, by town life extensions, for of future it's project think to it's going is asset miles production We miles has from is that mine It's frozen the asset. think NAL really perhaps of medium in asset best the hinterlands in think XX other strategic and I from term given the highly been the a very

it. we going So bigger it's better and it's very about and really excited to advantaged get and are think

Operator

comes of BTIG. the of next Gregory line Your from question Lewis

Gregory Lewis

been of talking ATVM. did I I some loan a sequencing on you've obviously, the the touch of for Tennessee, Keith, that. going between Tennessee the guess around how give and your comments Carolina, to with in bit North and better on adapt my already securing process does is about want we a ATVM in more sight congratulations is line takes have question the if little on financing because forward

decision both of months. you money do forward? think projects that that mentioned XX how terms I pool XX about take Carolina, to to to North going think Like in for move might we making of

Keith Phillips

to the in that's but process DOE Tennessee that doing government on Carolina, The to expect. reasonably and the a work, articulate done as by of we'll benefited is we're fundamentally, July. make involved. very going from does need been A that plant. lot diligence been it's by done today, team advance earlier the same work deep the We work to have exceptionally But chemical scenarios. hopefully, which decision work you'd lot the Xth soon soon, as ATVM first reasonably of We're on a project not different of

is with the of technology working the lot same. So

work haven't that's some perspective. Tennessee far Carolina we that technical done where reasons, in about been But in loan advanced not I it's that that either for think up time. permit So, so a and from far deal we've weeks along.And the transferable commitment a from event, optimistic giving for away the is mine a we're largely been big strategic

time think is be an project other it, it not a that seen billion-plus level depressed announce where We've do where lithium might even characterize something it. we're if in could at, I like would a building $X we a similar things. do So, the environment prices companies I to right still you think are level,

So we're not massive value. think a there's in strategic hurry. We

in joint about partner a venture America. think in our business, all we're the North module biggest producer As we and

We an asset associated and have right. sort it own with agreement favorable an of offtake in very its is that

have have near-term which CapEx. strategic these And of We kind which then at production. decade Ewoyaa, production realistically low of are we big relatively the second-half is projects,

help offtake help the with basis in on come to to technically, with the help partner dilutive. the to do So it's funding, that get really get and or funding important right, least partners it to right

So we're a patient. We're not be in going to hurry.

is lithium think I together remains end XXXX funding interest strategic up from all excellent strong. and a to we timing positive timing XXXX might darn I of over because And this in momentum good bring to think the see our our pretty expect kind and market very being very, the perspective.

Gregory Lewis

And EV on, see then increase. penetration want higher-level the touch lot I macro people continues to thanks a slides, for to of did despite

you're has projects. like Just under kind Has couple over cadence? of been all I obviously, ago of any months Has just pricing simply of in stabilized, feel change recovered, there multiple last ones there demand cadence it's up. kind Or the multiple have we're we're lithium EV slowed, that now? change? kind having offtake having that backdrop, are still at X of multiple having the months changed of conversations, conversations been has but around the as any same customer kind that

Keith Phillips

But any they've investments of are little who everybody of kind strategic There asset are it very line a that's say, realization. hasn't big or or wavered have frankly, others where I But here produce But a to and American lot time macro X and achieved demand material I is and very X I so or big bide would can about an opportunistic. substantial think about interest only customer a interest get funding. next making customers lithium strong, very are just there's I say, from now developed on amounts a of lower for frothy, North with take at customers in to it's projects an to strong, one of several particularly might come who meaningful parties Canadian active changed. price for need some of I'm remains going than our basis, would extent, have our spodumene. will. time asset that, time, American and can people much who more the lithium be different is, To need what arisen a that produce blue-chip talking has supply. we they say these years. trying think like who There the position with is all. way more would in parties is of for really we to on we're

basically are that interesting, with that some operation XXX%. probability success there spodumene is the are pretty the things While of

with proven execution anybody still good where lot can into The of but a think people to they're of they good material be with lot spodumene by be can may hydroxide a other that, increasingly other or locations. I body turned projects. and have can that particularly get quality That's a battery focused produce You issues, spodumene a guys on find strategic it, carbonate. in

Operator

Your next line Peterson JPMorgan. question Bill of comes of from the

William Peterson

Bill on XXXX? is Kakani can associated estimated story touch Mahima starting re-zoning costs you a pursuing latest what XXXX also with on Peterson. And or for of any with is sort maybe your This is Maybe thinking then of that land process? Carolina, mining this it on Is the for purposes?

Keith Phillips

there's The of of we'll be process, costs the doing part rezoning it's the that are single-digit dollars. but millions the through I it studies engineering it's associated life of as pretty some modest. process, mean with in

is in years, is pretty funding the when do think or the about if a the it. and county, commencing a us right a process. And in against time from a we reached right the rush don't of right months of May, to is. now XX from conclusion time and not kind we think during rushed we XXXX. think we'd an kind is time kind do capital perspective, And really which I We're the of up the years, of looking to the bumping that's The to the process, really think a project This at holistically. of rezoning perspective. for thing it's us we're we if lines from election it that just sort We've is as sort timing XX to year, in X-month of X- of to be kind that question development the line for time the that as we we're project it. time do frankly, we're ever, important commenced for economic process. biggest to county And probably

this is So the formally that ourselves to of embark prepare course XXXX. our really year of that plan on with in kind to over properly

William Peterson

Maybe you'll for internally Do a second expect back full level get beyond question normalized then. cash production? year to Or room in 'XX move considering the of to lower this to projected cost even rate in half your and there to on get run NAL. you is cost

Keith Phillips

in view. Patrick if pipe in has I'll a give you he my answer, different

substantial think we're this progress going pretty I to year. see

costs the that in mentioned Patrick think that QX I affected [indiscernible] adjustments reported. inventory

would And kind over a hit or see kind are really at quarter I this internal we expect I of end But think in the you meaningful question and should half rate. run quality year. average of where way on of think we in cost then QX I their the And ores two cash in second the our reverse be are greater the targets by basis, a think think improvement production higher the and and hope movement. of those will it's work of of of time. we a out to I improvement maybe year. But to

Patrick Brindle

produced that. as a basis. would we improvement I operating ton do meaningful on unit We expect production see agree with costs increases, in Yes,

and the of through mentioned that we the still part in greater think I some quarter, working last the through old pit, will of we're underground works persist XXXX.

cash some we're still old cost going operations. kind there's works, for into think room those XXXX, as get and back operating into of even of improvement fresh I level half first through we So of rock the some

Operator

of comes line BMO next Markets. of from Your question Greg Capital Jones the

Gregory Jones

regarding looking timing question My for forward. shipments of the is and first XXXX

that shipments sales How out you that beyond? Do increases under as of was and smooth sales? should for we expect I those contract [indiscernible] comment to demand. into might to timing about the think reasons half Michael customer you this year heard relative that the XXXX I amount the spot back related think heading sell

Michael White

We're year basis. XXX,XXX delayed tons think, this that a shipping unusual shipment. is on normal in an versus I a we had XXX

that this into So customer are we're also shipments. in there XXXX, It's $XXX million an the transitioning some unusual year. delays of unless would later expected year be kind for number

gearing our XXX,XXX think a customer the they'll customers material. they over X this is kind to fully up XXX,XXX year. So to account geared for our be X up the entitlement year, year We now, are course do a receive so. between sit contracts, of we around of Right tonnes tons where

So beginning effectively, XXXX be material smooth a to contract shipped all in will relatively customers our of basis. our on

possibility ship those quarter, Now all by the vessel, extent next, one one shipments to ships into being having lumpy things et in of the there's and go two cetera.

not year. So quite we'll the there and and that's need they be and just shipping Sayona it unusual are but extra this something up, year the don't have our later need we yet. customers partner, and now, working the do with year, for ramping shipment just This on our the is an next calendar, actual they schedule we're material

unusual a year. we back-ended from why lithium benefit shipments So somewhat that's have a not, knows, This will who may predict may we can't to perspective, be work our the that pricing it prices.

Gregory Jones

on take industrial should there read-through sequence. the a appreciate in X for Carolina Piedmont was Can made the on that today's agreement Carolina, decision? that terms comments in team I and projects. your call that that Tennessee meaning near around assessing the purchase elaborate of There please jump that the the And development any we Regarding earlier exited is complex note you release the the has might of ahead in timing Tennessee.

Keith Phillips

an pick down as core that lot was we for I would we it When And be became market million, capital close property helpful. a that's it little in secured if of a old more on available property we the existing industrial Tennessee some had $X an It's in There were of thought infrastructure a very infrastructure property shut and thought. a aware more where we option the of cash bit down. might million. be think It a There road efficiencies. management up frothy of was that permitted, that may just $X can was the we by. foundry, sale. got had for

and the property. that think that made we it sense, optioned time. at We did we So thought

we it, kind to realized was we have of forward, it need a to move have As it. we didn't nice

assets did out that difficult studies we lithium not Our where writing and might hadn't a market project us. letting people contemplate really decided property. we're for just all a engineering technical Tennessee a and non-core the walk the on benefit. work check selling that having in property much we It just from it We away off, figure was yet, done how even potential benefit

And where So property lots some secure we cash made it we or is the are just in with day who to about a anything property be may There's other Carolina management a nothing kind really into that area. we was core decision. it that property over And do based But again tactical available. has wouldn't might property the one on I that of knows, read decision permitted. in decision downmarket. the of the

Gregory Jones

recent benefit in an be of mine of both loan you activities of eligible ATVM addition could. The a what Final this and program, more to may extraction it the there is could funding question, loan under may expenses. the form aspects to could production of understanding that recently clarified program fund so from Carolina, announcement? pursuing In you or portion sort this I mining if office DOE that relation

Michael White

that we that's with [indiscernible] Yes, good. noted interest,

the the The CapEx It know, plant activity the would qualify. it would As qualify. think was you not pure of of The mining mining I high. is upstream concentrate doesn't not ATVM business. the extend itself overall operations. part downstream share does extend, may that mining The program to

critical really re-evaluating about The projects thought is we've minerals team something mining lot of obviously global Carolina, D.C., it now. availability what news. loan assumed have we and critical DOE U.S. There's as That's for means. So, and digest minerals that will a That around good we're that projects. wouldn't really activity we for to activity. historically, beginning a in be

we're I around encouraging. instance, the think it's still with for Ghana, So DFC and discussions in

Operator

Richardson next question the from line of Evercore ISI. Stephen Your comes of

Stephen Richardson

are kind on in of their know talk about terms on dependent Tesla's you Corpus and too ramp-up ramp-up want in the said of I of back what what much year? is that shipments probably and, what offtake could of squaring the just don't you in year and the the On year. customers, Are some you comments of you'll part balance some for creating about in spot the in the kind the from but at and previous Michael more have terms uncertainty to shipments the terms NAL dependent earlier balance of your of kind of you of the of script timing deliver the

Keith Phillips

said, when a supply think talk people have material, take in didn't want you as chains Well, of to specifically, about or the the that material I two each customers a ago. don't customers this year is but ability project so long-term you offtake I our taking exist with like

is kind going So is where a converter through kind of using they're well. as process a that the other material capacity our to effectively to for building of going that's due that material customer convert

just material. less think I on this Albemarle may on done Quebec spot would these, think when than not way turn and later long-term and we like than some The has in with our spot needs better in for if year, currently as true. that's regular based thing. we've you it's material the okay.Interestingly, in market it announced announcements others. seen it's can we XXXX, each later shipments natural expecting, that are agreements. We'll slips recall, the of they to a Yes, that of from the we have of people past get customers, a If hopefully, either a cadence into they're year do to one customers we spot we these shipments evolved

And really ship we'll we time. renew kind to we're as One But, have years. really our over I'm customers to to X them of is each of material NAL, those be discussions of and of months, those. customers want one with going so have forward them will somewhere, and we're the is their long requirements confident as is out years, X fulfilling XX having happy it's really coming want we to looking X evolve.

Stephen Richardson

fair well the promptly what the you more than as I'm payment in to spot working on us of is on market it the some you do I earlier of, offtake on assuming, just Can these, assume you remind you sell terms capital? the paid that get in appreciate terms comments

Keith Phillips

generally are to material. opposite the prepay the in spot interesting. of it's It's shipments done the generally Yes, who sort companies are via trading for happy

a million of a XX% might it's they of of say ship, the Let's payment make value $XX XX% or provisional the shipment upfront.

X,XXX, case, So that's I money X months by it to us reverse occurred, August, think, big later. because last got after we we owe delivery to and happen that all going that when we in had provisional the customer actually prices time to were settled, and had was the in it to August over the payment a

I our contract on good promptly and negotiated. with So we're after reasonably we to reasonably average will the think have They by JV. shipments, is prepay, on shipment terms be them that don't paid and they pay hopeful we've pay they standard before the timing pay

We have XX days the for material. JV effectively to the pay

our long-term generally and think better they're for customers. We are it's shift rather stable. us the interesting. more terms So We'd to

the the you, for of is you money It's material. to can you with not can It a people market the free. prepay advantages funding of upfront. cost but it, costs spot the it's get associated get One

Stephen Richardson

of things been Carolina. There's about lot asked a

at one last you in. fits kind EPA XXXX I comments part. just it time how time when for on line and couple the you last funding And sounds then line would affair. at partnership right like years? are done of a understood Can the over on your conversations, DFS and a plus on zoning, that of Just the next where the considering remind acknowledging my cut be this runs us this that multiple you've

Keith Phillips

an engineering ongoing lot we've a for to work some that. good updating from Tennessee learning We the study, money, thought did obviously lot on the on basis. of last been design a in of good some We an but haven't that. year, given did technical updating technical There's spent work

course. formally DOE these I It I time I partnership but commencing be this the kind and to So, it how think going parties we're XXXX. could line, will the conversations process begin of bigger could they're be depending comprehensive over discussions of and as about already take but funding funding rolls and we're to place, beginning, really think on their announcements multiple think think out. them, this they'll going strategic conclusions strategic course you quarter, involved, The give year, sort run conversations of

X line, to. about could the we it. for think As about that's want more take you we move from thinking lithium sort we're if we now, way development prepared things this; as quickly, decisions the There's probably more question be we years the of a markets But recover time, earlier. we time think quickly if at can

really updating technical a of studies, of terms thought. that we lot haven't In given

updating are technical We work internally.

of some economics compelling. partnering really at bring the the market. kind But generally process, will, conclusion We speaking, think of we point both economics projects around remain to of a new maybe the

Michael White

the air is Yes permit underway.

think I year. air encompass this to we're permit hoping that

October slotted we have targets. as sort think moving I target, of but in a these are

requirements the during process. of have details changed Some permitting around the

We But something half significant ago. Kings obviously But a and Tennessee. in air that received that's We're a years don't an for doing X our accommodating work. pretty fresh year. we're Mountain see risk. second with the of particularly timing from received we're the So that property or for perspective, an comfortable X permit targeting we've process. permit as We air that

Operator

turn questions. back for remarks. no closing Erin are conference further There the now over will Sanders I to

Erin Sanders

Thank call you. That our concludes today.

of we can and you find thank Piedmont our earnings website. reminder, your time call release, a replay in our And you this As and a Lithium. presentation on for interest

Operator

Thanks today's disconnect. you for now concludes everyone. may joining, call. Ladies all gentlemen, that Thank and you

Piedmont Lithium (PLL) 9 May 242024 Q1 Earnings call transcript