PLL - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Q3 2024 Piedmont Lithium Earnings Call. (Operator Instructions) I will now turn the call over to Erin Sanders, Senior Vice President of Corporate Communications and Investor Relations.

Erin Sanders

Thank you, Operator, and good morning, everyone. Third Earnings Lithium's Piedmont to Quarter Call. XXXX Welcome

White, Lithium Phillips, will review President us updates. the today commentary Chief our session. Keith we Piedmont from Michael operational will and who Joining financial and results. will provide Q&A are Executive transition and to corporate Financial live Keith Chief Officer, introduction closing then provide before Officer, a

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

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

Keith Phillips

in to successful right us challenging Piedmont a Third Lithium's us, successful. jump Earnings to has joining We're for everybody, today but Erin, for going thanks, for Thanks, and Quarter XXXX discuss quarter Call. been today what

theme goals customer spending, strategies. of volumes, second halves first while of first a capital X one, difference able profitability The are also quarter our half shipment of per calls and ton strategy. QX. report If And points to year, refined on describing and quarter. between discuss you'd call heard deliveries our record market X this our year happy exceeded were to commercial in key investment execute number this been our our you during we're and a the half the expected we'll met commercial or that we We improving on

consolidate hedge the we resulted in was in to of futures to a the industry. best comparatively ability realized was that Part of one against the customers. well important once costs. the strategy Our price reduce as executed move market the commingle achieved and shipments transportation quarter two, costs, Number successful American to operating supporting unit records production deliveries North our to as reduced of Lithium quarterly again

affiliates. OpEx, cash with heavy investments and our in improved CapEx spending we position a across Lastly, on focus disciplined

resource North we during increase increased costs records indicated a categories, to Now accordance X for mineral new the I'll America. quarter. Again Sayona the on the estimate, Dode American NAL North let's third about move in project set requirements. more already this quick talk also largest and resources next reduced in Slide production mineral the with including in quarter, operation update. the a Lithium lithium is in the significant slide. production measured and JORC operating

is venture MRE joint operations brownfield steady asset. to positioned consider expansions major well this updated and the projects state, of completion capital at With to the potential

our Meanwhile, permit mining joint regulatory is operating to in mine October. timeline EPA ratification were Turning development and X Ewoyaa in received the the Ghana, major permit during requirement in the parliamentary milestones. its next quarter venture lease. These project major Ewoyaa. the of

the the also XXXX, expect conditions. half timeline first occur market but to project subject of in will We ratification this is prevailing

funding adviser noted potential share to Ewoyaa in engaged CapEx. parties. have is for secure a we financial our we There last from As broad our of call, interest

Inflation should U.S. The The engage broader the Lithium the the to of Reduction pleased we ATVM Carolina with financing indirect conditions. long-term potential form material to decision, recently of credit. of in strategic manufacturing like seems Carolina Lithium. very of discussions final costs. to offers loan we the the funding, after-tax which to and the provided and received XX% this low-cost partners the Lithium, XXX given economics there process market ideally Department At with a ATVM point, are regard With to where moment Carolina guidance the direct applications Act the regarding to to we Carolina this I'd peers potential We're of commitments, ATVM take positive very Department in tax on be by However, we taking some guidance our strategies. improve for new the received time confusion Certain current U.S. like and suited news continue materially capitalize projects Lithium. supports the application credit Energy's sizable of loan for our with is program think some that projects our have clarify in To program. evaluate to funding like market. status Treasury

applications DOE loan ATVM both Lithium several had Tennessee and the for been previously have discussions and We years with for Lithium. Carolina in submitted

we XX-K and reevaluate applications priorities began schedules. in those in As February, development both as in withdrawn disclosed we to XXXX our were

consultation We Programs a and Loan date. application again will Office the the are in we once submit future a ATVM at pre-application with process in fresh DOE

largely past operating project take require the energy per this scale advancing crushed Recoveries during X, we which current very phased held previous permits commissioned at approvals America's further the with more water progress produced work tons production concentrate increased quarterly air XX,XXX dry continued from We're dome a measured driven by but parallel, XX%, to in in cost specifically quarter-over-quarter. of gain metric utilization downturn. that Our as certainly to is development XX% highly and trend. an see XX%. underpin has in markets QX. increase On profile. will impact quarter, We're lithium also Carolina the the to national is safety injuries, record a ton time the Slide we steady market to project X% duty but improve permitting, of this that into excited however, QX, lost not volume nice little security, with if or to achieved than no funding medical was to Mill dive to current focus, quarter-over-quarter no the a a important strategic decreased injuries. aid least, ongoing project Lithium you injuries, a of quarter. incident-free In best approach NAL Last stronger spodumene record availability modified a a September of XX% a the more pleased and adjustments. deeply the related ore exclude and and no inventory NAL's

fiscal production regarding of all You which and sales can guidance also excellent. year see look on this operations, Sayona's XXXX slide

it on who turn our I'll to financial a Now performance. provide over will Michael, detailed QX discussion Michael?

Michael White

Keith. morning, Thanks, everyone. Good

third compared and quarter to the We previous and to volume in to the to quarter $XX.X and $XX.X declined for Revenue shipped quarter Slide approximately previous from million shipped lower increased the year $XX.X metric which recognized more is in from volume tons prior the the will X, dry million our the revenue in XX,XXX quarter Turning million our previous I in than quarter, pricing. quarter quarter. results. prior due outline doubled twice year lithium due

ton SCX an per per metric quarter. was equated metric $XXX basis, to On ton price realized realized our $XXX. equivalent the for Our price

realizations, commercial moments. in strategy pleased a are conditions. in these successful especially will few price our achieve given more market to about detail We Keith talk

$XX.X planned GAAP benefit results gains Also $XXX,XXX mainly with impairment GAAP to net per on in in or and restructuring XXXX quarter to were of loss on lithium $XX million impairment or charges in security Included and million results the in GAAP was share $X.X compared in cost ended net quarter cash as we our the transaction to our adjusted and share Lithium Carolina our related were for loss costs. per quarter. realized capacity $X.XX and plan, the million to which second hydroxide Third $X.X $X.X $XX.X severance an included cash related equity shifted $X.XX holdings Lithium associated adjusted employee and of We savings million was million end basis. other Tennessee our costs. at and million unrealized with

sources outstanding investments months the us million plus quarter to to the end that We're in quarterly expected Slide the borrow payable the from in million quarter, have in the to September at lowered spodumene improved spending Further, to have have and of report focus the concentrate we supported in which are structure. we facility with as outflows volumes $XX were provides ship million the of our of NAL, cash NAL's minimal this benefited feed. X Ewoyaa vessels million. affiliates of we date cash during facility from liquidity at improved increased multi-year value on Let's time at cash. outperforming facility is and of balance finalizing SOFR the previous $X resulted within and additional complete our XX credit based of million only uses move $X which compared remains into to entered position on credit and capital cost mid-XXXX, as for to Sayona-Quebec loading, are previous crushed ore against to from in reduced since advances the net permitting that significantly rate to $X guidance Investments succeeded credit completion the were credit committed a up borrowing. we quarter. pleased of for allows as of which X.X%. This dome Interest Borrowings efficiencies operating availability. expect $XX at borrowing which a proceeds working XXXX, In the partner,

were in right capital of Our target. quarter expenditures million the $X on

manner. will It XXXX our cost to $XX part costs cycle. Let's cash annual as appropriately not critical thoughtful that rightsizing is cycle plan. our during set we long target our cost down how million savings of move agile last, continues Slide at our are year. yet while beginning X down to the review cost structure we plan. This million know do the to to of $XX to manage action cost And savings achieved We savings the our a the committed we be above in in taking XXXX

and expenses the workforce recorded and reduce Tennessee cash bringing XX%. We savings in to benefit severance primarily charges and actions XXXX reduction related expect total charges $X.X within We noncash through related recognize XXXX. in restructuring This at in costs during taken to the XXXX million operating fourth exit to includes to This workforce majority impairment employee expenditures. in $X.X to our the and impairment further our costs capital mainly $X.X Lithium. includes million of XX%, million and quarter in charges by September

expect in costs and employee most our as in benefits the reduction. of to workforce incur recent severance fourth result $X quarter We a approximately million

these to and down review areas, which cost joint during to approach plan, our measured a spending outlook. cycle. XXXX As in part the significant of We've our venture made of savings expenditures take will are part we we progress as continuing capital

Let's fourth review to Slide year expectations. to full move forward XX our quarter and

metric from adjusted have full request shipments to dry range in to outlook our XXX,XXX year approximately XXXX tons customer XXX,XXX dry of one a metric to tons We a shifts for which due QX to therefore, quarter be from shipment for of combined a second shipment, a into our to to reducing planned first transportation shipment XXXX costs. XXXX Sayona-Quebec allow shipment and potentially the December XXX,XXX January with

for at production which venture customer XXXX quarter fourth North to is to allocations offtake, be shipments is guidance aligns the XX,XXX our the fourth XX% not of Lithium. or shipped tons outlook tons dry any of XXX,XXX It's of with metric to and adjusted quarter This NAL. important outlook Our American tons. will tons the our from in production higher note joint at XX,XXX accretive

project-related including CapEx Of greatly our in course, are of reduced may customer and first as as compared well expenditures and both shipments. investments of the XXXX. shipping impact key The certain the outlook factors, future full that year requirements is takeaway half XXXX constraints to timing

a CapEx in CapEx than fourth million. million expenditures basis, is $XX in be XXXX. heavily compared reduced expected to On This We expect the to of less capital $XX in is $X to year $XX quarter. million full million

year full to $X and and expect to million to the This $X million $XX million be advances approximately venture to fourth million We investments quarter XXXX. $XX in XXXX. $XX million in compares for joint

outlook in And the changes our to presentation back always, subject conditions. is to that, over Keith. I'll As with turn market

Keith Phillips

realized about SCX tail at today pricing an we of of market, Thank have at being you, the Michael. starting call the basis. cycle, industry the compare thoughts pricing the I'd this with a prices. our share like able reported some realized in this end to is across Since equivalent earnings benefit look quarter's to on

costs equivalent a Our basis. of you result shipments second Which, an was $XXX contango quarter. our took price can half consolidation the of ton, being markets futures the average reduced transportation an an see from this improve Sayona-Quebec, strategy industry-leading of price commercial advantage realizations the to lithium which slide, on with JV, in profitability of for was as also Improved again, SCX significantly. our to

leverage will prices to costs continue As The work Michael streamline further on schedule lock futures working noted, partners we trading possible. remains in opportunities to the market and continue we to specific to all generate cost shipping while to higher where our to shipments with minimize contango, shipments, in freight evaluate company opportunities commingling future savings. by to

As on lithium for focused X the market, we're trends. key

cuts First, project and market. supply across delays the

shortages and in Slide aren't curtailments and from term. at that level a coming are expect XX, next-gen lead greenfield on medium support delays see prices can I just major and ultimately you Lithium the producers will much to lithium development, As to producers.

to have full experience X Sales X EVs consecutive sales, September, alone XX% market through August X September million consecutive X has Second, over record months, been more for million continues demand September. were than sold. months EVs. sold than year-over-year The through and XXXX There more growth. stop. And up EV with China

Beyond production up in XX% prices the with XX, Lithium market up up concentrate reported in ESS battery of evidence and with the the a markets trough spodumene $XX demand pricing we see days. in past growth is strengthening. growing, and is September recent exact, fast just September, from XX $XXX growing by to be EVs, also production year-over-year

end lithium a direction. the The good right cuts the markets. believe consolidation, very in and We countercyclical in the third and for into thing all see diversification we shareholders That's growth these M&A, of accessing is lithium business. geographically demand trend market consolidation, point investments trends, in importance and supply,

the Q&A. forward to the for up can to We year. so turn we With the are over that, call looking operator coming I'll open back

Operator

Partners. ROTH line (Operator Capital Instructions) Our the Joseph question from with of comes first Reagor

Joseph Reagor

to I insight shipment on could do Or way QX, fence? thing, guys the right guess leaning potential one, first you of kind this be it have shifted, which now? that that's is the second on on

Keith Phillips

I'd almost would December. one we in It's will cash. say fence a it's The By to scheduled are in Joe. the January. toward would shipments, cost January. the transport We currently Thanks, savings has joint The co-mingling pretty have deferral on shipment significant. scheduled but leaning -- venture would we significant. save save perspective, probably very resolved be or million the transport certainly million to $X.X Jointly, that From $X.X that That's coming over save that. costs. USD our in we it something makes sense days.

Joseph Reagor

Okay.

M&A. mentioned you thing, Second

the companies to opportunities some call seeing pre-revenue market of guys for and M&A? you that Given let's there industry current just do related? you there is highlight to guys are Or that them something wanted you struggling, are the out as

Keith Phillips

to highlight wanted theme. just I it an as No, industry

a or fast-growing this time. seen I -- over the think other at matter. consolidation the in number of of it's I day, you've a probably a a commodities decades, be think We've large the trend. boom over second a This there And it's as of I few really end in is lithium just third got We're general the will business. as the next inning think. companies,

good consolidation industry will I good investors. think should theme and thinking think be something the for aware a be And of just I about. and that people is for

Operator

Cowen. question from your of comes David And the Deckelbaum TD with next line

David Deckelbaum

over on the a next was in that I you hoping years. outlook bit just little the dig could few

seem the that for like clarified a that benefits economics or improves think of process some of to like X? view sort through there going Could XXx you for just the the partner offtake target I then set you next ATVM partners progress of that be process a It and of how FID project there. or and perhaps would decade? the the Carolina strategic a an the you you'd loan sort goal with or highlighted first at perhaps looking over for loan would year or end at

Keith Phillips

probably and on We're have when Yes, But would of that is We some so projects question. recovery with permanently, deferred, confidence the our I coming. David, based don't projects, in happens. and but highly other market confident think is great Ultimately, great many timing that's projects being many projects. marginal, deferred a the lot it of it. the the as not characterize recovery a I fundamentally,

just Projects enough think the be there's to at grow. to point, continues like needed. Carolina demand some not going going meet I to be to lithium that are

We're bit. the I the different offtake detailed a bring think was really on operation wants easy sort to long capital mining that the can an which and further. probably Western in the in obviously limits little Carolina very of with a group end in few advanced. you're would Western right execute. Carolina capital, just own, could brings And partner to be in that's been so do ideally, have bring rezoning partner off engineering. bring these We just strategy priority engineering project want the really who a of of But day, in help lithium, of expertise is on can an right, an market execute to party and execute group That than sort companies' We've engineering, offtake. I that detailed not conversations help project build to less forth the the but financial on in of ago, through certainly today ATVM share our At the really it's relatively end we've really struggles the on could of of -- a Australia, to is work Tianqi completed others. they That's which Everybody The we immense more isn't loan there's taker, work or think, to challenging. years mind not the a on since who integrated could we've somebody could the spodumene an but the capital, partner. the Australia, and bring U.S. credible bring. well early seen concentrate customers was thought ago, could Albemarle finding do think and time but our project. some at of front. process of part. the we've to #X detailed given straightforward of larger ideal time. front it. and and of on X put front that is struggles downstream it partner project, bring is the think we going XXXX. the And can priority other and more They it advance their tail party with They lot conversations brings hydroxide now, as we this a is a a team capability. operating the a a get money decade, hope FID on who everything people, the here structures. my we Whether a would the in limits We're things then toward else. done before hard with for lot DFS that end invested of And way And given best partner, course, timeline the that's one. to amount

David Deckelbaum

catalysts like, half Ewoyaa. in as into it next you I there appreciate we perhaps relates 'XX that, guys the have And to first rationalized year, seems 'XX ahead of it the some and considerably for budget Keith. as are go just

financing requirements corporate assessment? Is that are at as are well. minimal But would fair the level a in capital it 'XX. that some the quite Piedmont holistically there at guys strategies seem for looking You

Keith Phillips

is declined market this, And wait like significantly. kind word rate has better I it. you our significant market unfortunately, think you used and rate a all Michael about we'll I if burn deploy for Ewoyaa, reductions staffing rate, be a cost burn Capital reductions indicated, as burn the capital. from other the perspective, -- when Yes. muted our remains and well. overhead has and will I of But mean the given think

be Ewoyaa, view at our a this Atlantic capital we've case, same. shares as of the One at our that's for that think financing stage requirements I looking options thing clearly doing would independently I'd quite share at In modest. capital. been mention Atlantic of quite has well. been

debt some be the that in together level. together to are capital the best good to and That's in between think fund It like be discussions each the and I really kind underwritten really internally, or are I the to so on the over been parties work equity project of way package company world, a of something X conversation the kind strong probably funding DFC the on ideal bring package someone of an that at could else. by bring there's financing operating is project someone requirements the XXXX. the and a it'll working into of significantly. that we'll advancing Those of the partners minimized think course Washington

Operator

question line And the your next of Tyler DiMatteo comes from BTIG. with

Tyler DiMatteo

up follow partner ideal to wanted on comments I the Keith, there.

need And particular challenges like in to like particular? your does what I the related You of kind curious look of of comments quickly versus terms laid a things of the with conversion aspect surrounding to does in then in could that that out be though, for things, the decision to I'm you're for. how integration looking some the external the partner, a you conversion be if guess X in-house made? work going to

Keith Phillips

number Albemarle's of chemical A them each are them. all, But mean, bit in being of of U.S., unicorn. Lithium Yes. know might other. significant not a number X not project I of bodies a X of a that imagine, It's Listen, spodumene who Carolina Kings ongoing reasons those we have for companies discussions you a there ore in Mountain, the Chinese, and we've had variety are there as with the is Everybody, demonstrated of lithium are Chinese, -- group partners a there's and expertise are obviously. production. viable

lot given major its of somewhere characteristics, you're you you're chain just about sort list. everybody is and the idea, business want people. a the feedstock battery the in player -- had good and pretty U.S. of in supply a kind in think If high the conversations with you interested low-risk in of does, a which and is a We've as Carolina spodumene on good being

not might are year partner to isn't valuable a be to more who be in thought bringing I have project our value in conversations. XX% to they about the value XX-XX bringing important anywhere. who's somebody from think from deal. an there's venture a terms of from lot at partner massively intrinsic of to a of think And is Carolina in value strong. things a you juggling you do and pretty that -- Are Interest going how a protect bring really X partner, It's us joint the It's interest. that more and in It's it'd really now. are extreme. years one value is a you're That's balance. capital? partnering perspective, bringing trough shareholder on project ago or We'll How Lithium, bad about the versus have going you perspective. These for things spodumene a operator? do easy they continue

engineering integrating going a XX,XXX-ton think we've of who before, XX,XXX Outotec to partner as do the healthy. something And going do, extent, continue and and things, messaged in like has they're into And We is when things the plan that, course, to view of size been right chemical we a bring to plant a contemplated that's our a partner so With point think on they're tweak the some process, XX,XXX-ton original have of I a that's of look tons? Metso straightforward. the that's two capital, on autoclaves. I XX,XXX or certain tons to already, want good. be pretty fresh things take has to capability variety you and a going plants, in at project will

team decided has, have plant. after have a XX,XXX-ton to to doing one a a of efficient the DFS, capital and XX,XXX-ton work lot autoclave subsequent Our lot probably it's more

You course. like will are due can't should aren't -- available. but in those out worked economics, that on important, XX,XXX-ton all build autoclaves have impact positive there be Details things

Tyler DiMatteo

Right.

to of in the NAL. just a Okay. Great. Or utilization rates, And nice that opportunity terms see about that and Maybe where be maybe kind improve maybe recovery peak ramp then seen some do I'm we further? you even today a that you've the little customer think are versus curious comments your can around here? of of and bit kind balancing at just some requirements of you of lumpy. at how

Just just maintaining set curious you that kind for there. the see how of asset opportunity

Keith Phillips

Yes. is They're doing team the ground Listen, on question. the a just job. No, at good NAL fantastic outstanding.

I top think mill of we're from XX, Mining the or year of component cost mining XXXX. is old XX the workings of so down They that bring another will XX% the kind be mill in the run an XX% still. where to plant, for years in ago. in through mining some costs elevated There's probably still are the a probably. opportunity crush at the We're or once pit we're the through -- level. challenges working rate of working underground particular on

mineral it future in And and resource funding, is lot, talked money flowed opportunity out bit. significantly drilling little NAL, real then the that's of this end haven't So a funding is the there important, and they're funding about a NAL. raised, through the we It increased estimate at by ongoing quarter. work. this so that at Drilling had year. will Sayona that This done is the but the that still be

of expansion XX- lowest would that there CapEx be Or really in brownfield per probably a a of resource And XX-year say opportunity in is, should ton update mine flow It's exciting. cash Quebec. another Quebec. way? the the going in maximize life? XXXX. probably the at to far the life. the it question or Early And by looking in thing is the then expansion days be right think right and a double thing you'll and kicking location think but around, to is is with obvious production project have I to I you're And be mine -- reserve best see doubling that production project brownfield decades

real greenfield on of relative site of shared to project. a separate see kind kind from You'd benefits standalone infrastructure

as the we -- term, NAL term, to That's beginning gets expansion very in think it That's at development kind Ewoyaa that there Carolina in near relatively exciting. certainly fit nicely. you of in something timeline next-generation about. for the brownfield So Sayona be medium but to about very talk are with our stuff, could to

Operator

Capital your Greg line Jones the with question from And BMO comes next Markets. of

Gregory Jones

I consistent understand shipment we in with next into tons around year? more remaining the to shipments aligned But expect timing. QX or baseline timing question the obviously was into what how this transpire First of Do tons year. the shipments related should XX,XXX about I might transpired you had rolling of got QX. XXXX? XXX,XXX think how subsequent You've or be maybe relatively to XX%, commentary quarters

Keith Phillips

Greg, a that. question. information we great have Yes, it's some And on

We haven't of kind guidance. shared

in when spot of disadvantaged I we if protect and be other with things and think think says, a price dollar counts. we focused And shipment, for us lumpy that quarterly something do this kind or month, months the are not It's a provide it push. the XX,XXX when just an or now think shipment end positive working hard Sayona ton there that's like transport get to I $XX have we today's some price I ago, happen. becoming revenue kind on shipment. just a friends really you then started ton that and I'd this It's And spodumene or that. transport can the at like on or costs, on, error. can is When difference will and in of between have shipment XX,XXX item I $X,XXX, And margin. every we'll -- those costs people to or $XX that and best the who XX,XXX then, transport of on low mean conversations, I it's push. June unfortunately, it to XXXX a increasingly, a minimize this need February, I ton don't or contract that really up to March, December material it's In can whatever? to or the didn't so generally ends that, a we're a our is ship There's less share versus environment, $XXX it's variety they we at do we're whenever of QX $X,XXX do I really, reasons. here customer mean XX,XXX on lumpy. we sequencing. we XX customer, might a guidance a $XX producing $X,XXX why rounding or negative market, price much. focus or a Every costs margin But

do indicated, higher a of in then of XXXX, we Michael due as sort I have tons should expect, than XXX,XXX shipments, defer have we -- to in have and couple tons. shipments extent think mean, we XXXX the we XXX,XXX we the XXXX I

model. think that's understood and it's to I fair

be and requirements the think in pretty being XXXX, and and in a bit what timeliness the desires should it it's QX joint year, little to the will We'll works how else. be delays. terms between this fair quarter even and I be heavy that It record these discussed. for of quarter, venture's, quarter, biggest need it balancing group will on QX just balance the always a of us. for we've with quarter out. the the next everything terms biggest see of And our will based each But be act a then of shipments

Michael White

This Michael. is

things was stick one was to we of to the view follow-up hockey Keith's a ramp-up NAL. of at in comments, shipments, the and As experienced due XXXX that that the

that we're of though stick next going out in be that well had QX we're forecasted are that accretive full and XXXX. as and have are into lumpy, hockey as tons to the as a going we experienced ramp-up, at of mentioned it's not of we that year, from production quite be looking even that going to year moving Keith Now to QX

saw little will more balanced a it than be bit year. this what you lumpy, still While

Gregory Jones

the blended Just question true a inventory In this had $XXX cost the on into mentioned weeks around few $XXX were about adjustments are NAL numbers? that And X should a ex think costs disclosed costs side. the we release Sayona ton in costs morning, ago. movements. how How and it at a the release operations those the its cash about inventory at operating

Keith Phillips

should through but a volunteer at will at way crack process been a And now, -- is That's still costs. of have the first we been in did disclosures. cash of you improvement if its -- some until cost high prior number, you little DFS get mill, That's think AUD over high-cost it's Australia. I quoted it. a run relatively was, sort there. as that. we're adjustments. they've to IFRS modeling should a good research It's real, while. just in true We're I XX.XX good significantly of kind see take kind rate embeds sort a hope it's a I for that cash think to of mining the to material material working Sayona number approaching better, We inventory. run of of lower that And They forward. run ramp-up, that of which continue think, levels. a I and with -- from rate. through any you includes as feeling the operating think number mean it's think disclose whatever or about cost cost I'll quarters. cash any which of GAAP point inventory kind some number you're the lot we the perspective, Greg, cash, had but in -- They quoted reports Yes, it. Listen, do than I And or kind going couple starting the do ex And

Operator

the with your line Bill Peterson And comes question next from of JPMorgan.

Bennett Moore

on for Bennett is Bill. This

much contract comment how on regards your you hedging? share expectations spot did in to contribute in of shipments? relative beyond could of remind long-term this us kind relative versus Looking to pricing QX, the And to the strength XQ,

Michael White

take that? to me want you do Keith,

Keith Phillips

Yes, sure.

Michael White

in take have contract we're take But we out benefit with arrangement, price question. on we contango benefit our QX, versus We so shipments partner as of customer And a the fixed between take not and hedging, shipments, did well other which the through enter long-term as for on partner of takes. able shipments of for a not we're positions into normally hedging, to able that. spot perspective, the to From shipments. advantage the do spot those the break but future contracts and each. we've Thanks trading do been seeing our

we because going to if trading XXXX, can delivery looking contract future partner gives do are quarter, our spot that long-term that yet into need look we shipments to if need primarily shift potentially to take at see having a ready the strong a need but customer to to But into us may long-term we to primarily a into that to. customer we a customer we pivot are XXXX, shift we But offtake flexibility As we're sales. go contracts. we make as and sale a that

Bennett Moore

permits? I And then do rough if see I your necessary are feedback agencies for these? guess to has with around air and the Carolina, barriers water could, timing And far? any expectations you on What gaining been what so the

Keith Phillips

No.

those It's the water -- I well. side think progress. in we expected, going think than are been taken I on air and but it's longer it's

think still half first rezoning need the through I critical. go the which is process XXXX. our is We expectation local obviously to process, rezoning

year ideally, we thinking other move to and in that from would behind to process. XXXX place. are be the whole permits as loan have forward have once I begin will and where a partner the bring that additive try that to have -- really once Which ATVM going think think I be currently all We we're once a us, we we to well together we process there. as

Operator

line (Operator B. with Instructions) Key Riley Our Securities. next question comes from of Matthew the

Matthew Key

CapEx. financial you advisers to that fund some mentioned You engaged the with Ghana

environment level, that in at the market. in a sense think that be I imagine huge market? package current guys spodumene? timing in we're financing of aren't And the asset given of the you the develop to high that do you expect also, do you to price makes rush what in Just depressed current for a a most what kind

Keith Phillips

and material the for a on we've funding a material. to happy car We've of plants, had do going And been is project real value That's doing tons just big question, great essentially urgency They're outreach. broad Yes, conversion half spodumene a a year in No, that retained. a many XXX,XXX customers, in those secure companies, our produce good provide time, having, to offtake lot of to been users, are focus tons concentrate. Matt. slowly, get has that year project financing. That project. job. That's going have Yes. a will XXX,XXX that We great The move the it's adviser At place. markets, there's companies, same so the account, been we customers the battery put to It's has offtake. well. order etc. to of the conversation more less given project

announced bit, really or a people, months process than up. fine. which lock later a started specific several been offtake that And that,, line so they production ago, Atlantic, you something When As offtake there's people. about going these could 'XX very they're of now as have we funding, process lot XXXX probably complicates to they interest. the They've think similar was of own talking similar little may their has is know, to on. discussions as in deliveries. We're idea partners in trying the

be time. be over with financing, used Ideal of the material level Finance debt debt, The the think over the and U.S. I we to best which through it's best government are project effectively we to debt. loaning cost time it asset. form shipping market because anyway of someone form to the of might the like could both project what for more at recover, money develop thing something form something, would if wait financing, we've decided have build these take Africa. lowest back jointly do, the where to us flag debt it the really others to Development the as in something going secure we're pay is People Corp. offtake

project balance a through could We sort And -- perfect. you with the conversations which child. that, It's funded some on clean plus had some project XX% of have the Ghana, sort and is a developing a offtake quite very like energy poster both project accretive group. in -- spend it's country see our on dramatically. project of of We that really They're could minimize raise loan friendly minus a or equity us. to our that like sheet still really then funding could own do be

lease be something an interim in sovereign buying that be that. That's the half. capital that our and in basis which expect to is part the ratification would There's say That's by process, ratification the an for come December. would I'd on It's as of the the thing forward $XX well. parliamentary to into waiting -- money that The is delayed we be on they'd we're but the as Ghana. money in available that fund project this other fund first million and will And look trigger Ghana, to of welcome by investment ratification beyond capital well. stake, year there wealth election mining get in X% a to a

Matthew Key

for you'd have it. of Or That's when is forward conditions just Ghana final that there considerations of price spodumene you'd prior to mostly super to market you kind like project? in that lot a on that helpful. want developing But investment decision you'd is going or there? long the be And see of with? to Got of certain term confidence comfortable occurs, specific specific price it kind a that a that is want just think there kind

Keith Phillips

$XXX -- to think, needs project And able positive line $XXX not be in can you spodumene return The meaningfully the anywhere at want hard price, $XXX or a on it's positive return Matt. $XXX We greenfield some I or where is, spodumene question, to good price. numbers. be kicked to bottom investment. world you find generate a a around generate higher. a project, It's to investment Yes. It's on

and at personally but away, I this inevitably it's pressure come, think kind continued bright far happen that don't just test no I necessarily demand that think of increasing that time think line on supply. will The and will given stage. -- there's growth I

Matthew Key

with -- Great quarter the job

Keith Phillips

CapEx a be the could just the good because timeline, -- per about the project as a separation. Ewoyaa ramp-up The pretty is of fast. is, highlight its What's low ton medium project, relatively dense it's construction

We're the was similar could sort done are far about a the the what ore low might that processing, pretty of Sigma pretty similar down think excited is best per projects indication this ton, good early you on, fast execution CapEx timeline so for advance. of relatively job body, development from it. being there The could I've that's As where be this ramp. They've a analogy relatively which be one deferred, quick. how great about And project seen.

Operator

there Sanders. call are time. over questions back will And turn the Erin I at to no further this

Erin Sanders

Thank your That you, interest and today. for We you our Operator. time Lithium. concludes call in Piedmont thank

of As Thank this presentation, a a reminder, our you replay can find release, website, piedmontlithium.com. and on call earnings our you.

Operator

This call. concludes today's conference

You may now disconnect.

Piedmont Lithium (PLL) 12 Nov 242024 Q3 Earnings call transcript