PLL - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q4 and Full Year 2024 Piedmont Lithium Earnings Call. [Operator Instructions] And now I will turn the call back over to John Koslow, Investor Relations at Piedmont Lithium. Please go ahead.

John Koslow

morning. good and you, Thank Welcome to Earnings Full XXXX Quarter Lithium's Fourth Call. and Year Piedmont

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

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

have the in found In slide to to financial included and reconciliations comparable metrics and most be presentation. measures can non-GAAP release presentation appendix financial the earnings this directly GAAP today's today's addition, in we

EBITDA I'll presentation references dry metric adjusted to replay over piedmontlithium.com. on are of earnings our our be Any EBITDA, Copies will Keith addition call that, tons website or and to call Keith? release to shipments spodumene With of a and tons. turn references available mean the in of concentrate this to at shipments Phillips.

Keith Phillips

production Operations strong John, thank of American joining Piedmont. Thanks, at well a for another you us for quarter North today. all operating was Lithium and impressive quarter In summary, metrics. good QX with and performed

the allowed to For fourth Piedmont, make in quarter. record the strong deliveries us operational performance

of price making in the profitability. of contango offtakes, realizations lithium market Our and larger selectively and strong delivering quarter improved commercial hedging in long-term resulted our shipments another combined the strategy futures under against

business, we detail Mining. topics a with part our call. venture our side at corporate each in XXXX cost expenses partner joint of successfully later We'll as reduced in announced savings merger the more and cover NAL, plan these On Sayona of the of our corporate the

X. Slide to on move let's Now

NAL 'XX year another produced tons strong in QX the achieved XX,XXX full nearly XXXX. XXX,XXX tons over in and quarter with produced

restart continual improvement with March of XXXX, utilization. Following and operations production of the in strong recoveries mill increasing lithium have shown

can uptick the earlier a ore in in the the result 'XX, capital beginning crushed year. QX direct You in in of storage the in mill invested the see chart utilization dome

has production costs decline with Increased total sequentially ton of a the to improved nearly start from XX% led year. operating the unit costs and of per declining

is move operating $XXX Importantly, mining in when QX old excluding has 'XX, temporarily cash the improvement tonne through with which the costs. and targeted ultimate were improvement led to process a of impact costs NAL mine, a underground elevated in movements, inventory continued Further the workings low. at the new through

North expeditious outstanding America's significantly direct from in namely ultimate speak and in to a In than developing is these operation, lower offers project. about greenfield at implications the it will in location January, of when at brownfield a into performance cost the Sayona manner lithium the results prices. leverage largest announced I program large an asset production in bringing a a strategy validates undertaken the XXXX, NAL we in was XXXX, later results purchasing NAL in that some The exploration undertook more presentation. NAL recovery back lithium and premier an

the turn with investors has energy There an changes let's as to much policy. grapple following development for been Now Slide projects. election to our on possible November's update X domestic transition on focus

declaring had industry, January his assumed the a quote view. earlier the executive many avoid a first a is an have Trump to minerals signed Energy in for the importance XX, overreliance On on and the production While of different EO commentary negative dominance. reinforcement always be the day President's China this we would to critical have indeed to on office, of administration President, order Central Trump national the emergency. President National energy domestic

Carolina lithium energy domestic of without Lithium. sources achieved cannot dominance be National like

remains focus petitioners permit XXXX voluntarily Our to advancing the a Carolina earlier received challenge our North mining and by state was in through petition this withdrawn We on that permitting month. permit in process.

optimistic are during of that assess we land the County and and We rezoning time continue calendar this water year, be air package to with will Gaston permits Commissioners. for our the line achieved Board of

forward course, of we to entering look due their course. will, We process to and approval proceed, in that need

QX, Lithium This Ewoyaa ratification. around the Commission a receive venture operating joint subject paused to anticipate our Ghana's to lease in pleased of remains process, mine Minerals permit were step XXXX. but Ewoyaa's decision market in to process in of but any final mining project, was funding. the subject from the be For investment is Ratification we final Ghana parliamentary and approvals we during October. election a will outcome conditions completion positive the

are At we current Piedmont, conditions. our at obviously a developing given focused market projects measured pace on

Michael to our financial over call results. the turn discuss I'll to Now

Michael White

in shipped a the for morning. also tons and dry which Thanks, record We and quarter, quarterly metric XX,XXX good record. XXX,XXX a approximately tons XXXX, approximately was metric Keith, for dry Piedmont

the quarter, $XX.X volume. compared increase to previous recognized The due to in revenue we in For the quarter. increased revenue $XX.X million was million in

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

conditions realizations. second and pleased a achieve to these to strategy of quarter our realizations current consecutive led industry-leading commercial are market We given price price

other equity of charges ended in items, million $X.X with at million and a XXXX the our fourth in restructuring to XXXX. costs $XX.X $XX.X Our and end $XX.X net million transaction gains million results with and merger $X.XX and or per We million of at related GAAP of start Mining, share adjusted of the of $XX.X $X.X including GAAP net $X.XX with compared proposed cost cash adjusted loss our basis. Sayona on per million plan September an a million quarter savings associated year $X.X loss the in in holdings. on cash loss were was or loss of realized Included our to share unrealized security XXXX

full which settle flows cash. in million, Separately, half the fourth year full shortly. prior Now sales payments year the of spot for XXXX Included our quarter payments sources detail Slide negative respectively. provisional to in than $XX cash million amount in uses rate the $XX settlement reduction moving million achieved million annual first for cost received to the final price XXXX. to totaling a and year less more was negative XXXX in the X $X in run savings, were and were and discuss $XX I'll Operating we we of

that ventures expenditures capital we joint than were laser-focused overall fourth in as well down cost in cash quarter containment I'll the outperforming We're that are favorable $X pleased of cycle. for our our to stress as especially guidance. lithium and terms cash less during management, report million on outflows this and

contributed million significant on joint $XX spending planned decline the XXXX. in cash joint first the as year, our cost For capital in $XX XXXX. projects $XX NAL basis. plan, to million of in our joint in venture year-over-year advance a the half we was Contributing completion investing restart million to and CapEx in expenditures capital outflows successfully million reduction reductions and venture executed the in we full to leading of Overall, at our in spending year-over-year venture expenditures $XX and compared to the

of million CHESS of the additional new of net As depository merger, drew raised our in part an $X interest proposed $XX through capital issuance million proceeds our facility. from we working and ASX-listed borrowings credit

expenses by in savings We to Now to our X. difficult and Slide but reduce the retreated. plan lithium in $XX early approximately company prudent took spending to target control initial cost rate We actions the term. were operating introduced let's spending year reduce immediate venture February as as run XXXX million. with joint we an our the turn These for XXXX long action annual CapEx and market the position

we conditions, our annual cost savings expanded the and achieved year. market prevailing plan on October XXXX in total $XX in savings for Based million cost further

and includes recorded plan, fourth million, $X in in in recorded charges cash year of in noncash full charges stock compensation were and Included our charges to severance Carolina the conversion $XX million cost primarily Tennessee and capacity of related $X of to XXXX, quarter. we and Lithium of of million, result part a savings benefit of which accelerated related impairment the to in $X charges reduction million costs related impairment was which As restructuring million of to restructuring our impairment as employee million $X Lithium charges our $X and workforce.

our maintain and in through management. to cost XXXX We detailed discipline investment continue expense

Let's CapEx for outlook XX, to XXXX in investments Slide provide where our and move and to advances we affiliates. shipments,

of part This in shipped ship to XX,XXX an quarter include the to year. metric at which tons first sale We this XXXX. sold the XX,XXX December tons were as expect in does not ex-works but earlier port of dry

dry For with tons making shipments, a to fourth year, XXXX. customers quarter shipments metric full customer anticipate shifted as XXX,XXX shipment to a into request which year result the to XXXX including were full we of a move from tons the XXX,XXX totaling to

As and may timing always, certain factors, impact future requirements shipments. the including constraints shipping customer of

CapEx our and reduce For our outlook, investments project-related to expenditures. we continue

full million in to be CapEx than and to and for million quarter million advances venture $XX quarter the year This than to in to Joint for the We $X approximately million first full are year. million less XXXX. expect XXXX. $X $X the million first also the $XX million $X expected less in in investments and $X compares in CapEx

With changes may Our conditions and over in the back materially. subject turn that, outlook vary presentation is market to to Keith. I'll

Keith Phillips

Michael. Thank you,

like to market. Turning XX. some the to I'd thoughts lithium on Slide share

strong report of to another price soft pleased backdrop are We lithium realizations the a quarter market. against of

basis of the SAX equivalent led price on $XXX realized again an Our industry. once

in we the from our the lags market. saw embedded in benefit the contractual in During customer a quarter, contango lithium futures contracts

strategy always in been markets contracts lags pricing longer-term successful, the may on a our achievable our go-forward the that has comparatively and realizations price mean be commercial in strong forward highly narrowing basis. not contango the While our

to strongly. lithium with for market continues As sold the for XXXX million very that grow sales record for year Slide EV end demand another EVs globally. XX was lithium XX market, approximately shows

U.S. growth last the demand EVs by equivalent dominant the and Europe and XXXX, units growth was on record grew roughly number sold of the in in to the million total year, largest XXXX. modest globally Chinese market X.X in While year-over-year

Energy like help growth storage And rapidly are meet intermittency and from there stationary sources to market. systems power power growing storage the to lithium evolve from are demand modernize grids, renewable avenues generation centers. in demand power of growing data manage sources new within for

CATL, our matter by positive a represent for lithium-ion outlook massively XXXX, producer, of fact, total a of As the to demand is markets. XX% battery expecting ESS leading lithium world's demand

a in merge conclude On Piedmont with with to merger last and to a planned The fully split together morning's on an producer on current lithium development will our diluted roughly announced in brings be with create basis. an transaction Mining. XX-XX pipeline and exciting Canada like which comments some all-stock America year, Sayona of brief States, ownership XX this bigger, the I'd stronger, merger Sayona largest the in call North with an November company, intention to complementary businesses United X Ghana. the simpler

Under drill between operational opportunities potential impressive owners. American evaluate current unique Sayona at company limited the Piedmont the receives expansion operator growth offtake the priorities production NAL's to competing combined structure, majority from Lithium. positioned earlier our year joining forces, is its resulting by North partner. is By this the agreement, of and results while is benefit

the brownfield and per Canada a We improvement one Carolina growth and low located share in of technical NAL ton to experience projects project the able MergeCo so think cost is also across operating portfolio the Ewoyaa, per opportunity and with are Lithium operating excited is CapEx merger. for the is of we key and Moblan. reasons best ton expansion lithium to in about possible enlarged

X. year for of located less a and concentrate ratio For James in the largest one region to America. in a tons Moblan, definitive is the familiar boasts of that strip The with of per of in and XXXX XX% resource spodumene feasibility of return rate this post-tax XXX,XXX project is study Bay bases the project North low spodumene internal high-grade a those demonstrated Quebec, X.X

top down $XX deal. consolidated merged On Capital RCF projects to the committed corporate of current $XX corporate of MergeCo the of approximately the industry's backing leading financings at realize announcement of into the enable with $XX The entity source and of advance upon development the the completion private completed MergeCo million million secured market. capital million merger on the toward expects provide funding time annually This improved during the to Resource side, logistics. to equity through mining combination of Funds, important will capital to functions to merger synergies a the

spodumene American versus other to planned has spodumene XX and as the peers. America, position shows Slide in is NAL the concentrate several production largest MergeCo preproduction its and current developed. of the Piedmont Sayona North producer assets at are potential leadership maintain North

Importantly, call is more optionality, significant Scale in Ewoyaa. Q&A. over unit costs the and make that, focused ignores Increasing can peers reduce and investor production business broader a a relevant scale chart operating American improve to this With this at appealing purely to on potential North can can downstream business. we is turn the customers, for to community. all while crucial

Operator

Your the line first question Instructions] [Operator of of from Peterson JPMorgan. comes Bill

William Peterson

may come do you that how fruition much for more touch guess maybe is related X tariffs U.S. refiners your versus on are questions shipment could that Canada, I the Actually, actually underlying was is towards my potential I domestic assumed impacts impact how of profile. and they to hoping if China other planned the to environment. regions? there industry

Keith Phillips

into thanks. minerals, The American the that by were be tariffs that which XX% days. XX% they the see question. number effect, I X would Yes, critical Bill, tariff the come headline if importer, effect. We'll be be Good announced deferred would for an were would number to XX the paid and tariffs for were think, is February customer. supposed take

customer. So tariffs. liable would we American obviously one for have those They be

may XX% of who to overall these impact in think may to a their or elsewhere other scheme were come that at and shipped divert to with it I take it That's overall before. the the in them to, could material decision-making that things, in about not pass. wanted locations if a the operations to tariff to avoid global they and And levels, talked we've of customer price if scheme customer we've things, them.

happen chose to that if they So could do that.

to trading shipments shipments venture that we none and joint make for the or customer, broader of our For goes international through to companies other U.S.

apply. tariffs wouldn't the So

William Peterson

challenged And of and you supply/demand discussed some into sort guess, fairly on supply/demand years, off maybe market your it over experience and what the based account I is project own around past taking and for prior have few curtailments, appears your I delays, the environment. based still expectations and around especially company not still XXD on next year is maybe or this policy support, over too, And that maybe behind assuming as a years? I guess the credits underlying working is perspective, tax scenes the and expectations the from few may well. may that, also U.S. remain

Keith Phillips

is question. good ball we our cloudy say would people. Yes. Again, I don't -- other crystal as as

the in aggressive XXXX. I think for have term, think young a expectations industry. I remains very lithium do I don't near any particularly

market, will middle a And now business and here, third hopefully, in joined bull I fantastic this I bear tail it think or that the years, or of second market of a a difficult probably in think I over in difficult inning next and bull we're the end market. in we're I evolution the of went the XX X We years. the I've bear industry say remain through XX will volatile. had a market. the been

call, storage expect of be I don't what demand, Nobody developments. really rip at will it. surprise. and other any catch talked by projected will might be market the be there'll we -- energy point, these it roaring things. exactly in I be it It And bull here everybody cause will about another know it some fully like could

cash So remain I'm on a we our expect We're spot industry counting volatile. price flow budgeting bullish, long-term do but do medium and the basis. not I -- internal to

XXXX surprised. to we're pleasantly be -- for on a counting hoping we're and challenging planning So

mixed bag. support, In policy I terms it's think a of

credits don't that maybe XXD the I disappear, see issue. an really that even likely think disappear. will as I big may

continues I think the U.S. a market market EV to today. be relatively small

on. we've from multiple the might is X X vehicles. cars bring EV think or the continuing vehicles and vehicles on are buy every solution Model to new for U.S. X We've or got ago, I which years the come interesting people that now the X, S Model gone and market in X to year, Tesla people really new market,

will I help. think that

continues But at terms global grow the the energy story. priced commodity storage of part rate. is is fantastic in of on to China a again, a really becoming basis. a And important --

be XX% We projecting X% maybe have total XXXX. a from few X% analysts by minds up some X% That's it or over of will demand ago. years or in people's

So that's a real pleasant surprise.

bullish, medium long-term So term, and short uncertain. term

on though policy. should I add

kind He's Carolina include hard on this can't USA, will anticipate could very national really Trump particular. table whole good in that's energy think theme. for for like I we and think focused security on we thing clearly well pound And the think projects support USA, yet us. a I of very that

Operator

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

Joseph Reagor

on complete I the do timing update for an you expect first and guys of there? hurdles when left like have you So thing, guess, to get to the merger what's

Keith Phillips

I release, hopes to -- the We said Sayona think -- be file going faster few be to process in really is to predictable, should mid-XXXX. In next hope or but be could weeks. documents the it That SEC determinant. our slower. Yes. SEC we filing initial It's we file somewhat and

frame, you you think reasonable I way about that's it. midyear July think if to So June, think and a think time

Sayona first time. biggest pro always review registering the SEC the will formas, the be their and is for hurdle review SEC say I'd of with of their the

IPO, a it So just be review in, like initial information. their of an will say, financial

Canada, have a we reviews other I about the comments. didn't from Canadian think hurdles, feel which I Investment any transactions think good perspective,

will in be the still be review, to of the filed. modest hurdle. optimistic present bigger, I market. issues. doesn't player CFIUS stronger, deal overall CFIUS a together kind that any we've going it's We're passed but this So company we mean Hart-Scott-Rodino,

issues. or I don't antitrust anticipate So any Hart-Scott

get. we're we'll need deal it's votes, And think which We shareholder for both of each then companies. a shareholders optimistic great we

So real does mean, XXXX is July after fiscal will the the first But better or close no the with as be, fiscal a that have for believe it visibility surviving I to SEC reason in question close problem Sayona their yes, it close comments. with we'll in purposes, we'll that. on as 'XX. have it ultimately, company, planning does -- their And

Joseph Reagor

color. some can partner other comment able was color it? of there Do permitting additional you than question, around one on you Ghana. and great you they not your was any to That be And on did? any and have Or but give this, speculation more comment may in media advancement what the then

Keith Phillips

Yes.

week think last I in there people I it's of Africa. a week big any and with a lot and commentary it's a they the Daba just that, different than think were or that. lot was more about this and the of world around around before, projects serious conference. -- There's don't

Ghana I now in team the job election federal perceived was think The is leadership mining. process. doing Atlantic to by friendly party December. Atlantic There that toward minerals is critical in of good even be development a advancing a that's in more

think that's positive. a we So

make we'll progress think I year. So good this

in I any it's perspective, and prices medium a to where think are bullish. carbonate level new from really a spodumene hard and is longer-term Obviously, prices a -- anywhere. we're and where where support hydroxide this market in a We're project investment market and at in

now. in an investment which OpEx justify Ewoyaa, Ghana, to right even it's CapEx, hard with is low great a project, relatively here So low relatively even

XXX% obstacles. we're means will point. might that in change. have those We line advance with have time a check Carolina you take away or Moblan. a that hurry at with certainty certainly been Sayona items the or in permitting project not in just the big change Ghana like and lead in But as as mean long we're we it But and boxes take will Ghana. comfortable project I otherwise a those or of in I some kind like

Operator

the comes Noel Parks Your next Brothers. from line question of Tuohy of

Noel Parks

term? bit the, And regional partnerships various if the I perspective part could projects near sort or a industry's was do Quebec. model on as of think you wondering guess, third-party of or possibly of just you if the see around little sort sort of the in being mobile? you could And business in on those longer sort something expands a of Sayona I talk material processing from your that are into be horizon the

Keith Phillips

focused question. production very 'XX great we weren't In When on lot. a transportation over NAL a costs. That's XXXX, back like time costs transportation were kind of mean putting frame, the market strong. into markets spodumene today, were a People particularly

Quebec If you remote not NAL most a have remote, every other but -- are. mine, in is assets other

of Just getting to market part process. is expensive the material an the

first, to or that somewhere get a or else. port, you Becancour, City Montreal Quebec to use or So it's we whether have

to now Then right you customer. of customers, in Most have you a to are as get the China. know,

expensive an So the part process. it's of

of projects that are a -- in a so couple Quebec. of one, highlight. means So things Number spodumene I'd lot there

them them very we have very really and interesting infrastructure high. will are them -- to high, of people remote. good of be ore get be some many Some challenging -- will labor and good really bodies. think costs and companies, good -- expensive. be to of some the market Many CapEx will

So we're best from happy by far far located the best James NAL perspective. we we think by think spodumene project the projects, Quebec And the Moblan of North Bay a is in located. is that very

NAL exciting. ton XX as than should The a else. very infrastructure Val-d'Or. miles we you is excited build that. particularly expand think CapEx brownfield think So about projects, per that is project lower from about there. rather be expansion somewhere We're just we're to And already greenfield

So about we're that. excited

Moblan would NAL more margins. North benefit, costs market conversion could to and provide from improve benefit. that, opportunity having could a all meaningful on said could spodumene transport The American It benefit save Having locally.

difference. how the where a makes is business on everything big to from you even, to a just and else, China, a big shipment that's people are say, it material If imagine breaking costs, $XXX ton Quebec take depending that

will now plant develop So in Quebec chemical that. inherit that we're the Arcadian to Rio people built Tinto right The in only cheering for being is plant Becancour.

like say year, that. a is more something to capacity. it's lot Quebec need size of that. to I going the tons XX,XXX a Forget want

said and goes, far bigger has and that where are on potentially way a partner execute be as participate the Sayona and I spodumene there we in is the Quebec. miner the as basis, strategy and Quebec margin downstream to other capability think can who we've as in the provide have said, some with our technical as make to really think ideally parties and I in stronger and

It will be happened. wonderful if that

I Arcadian could be like think if at for really Quebec. the sort I well for definitely of from Rio up -- industry. us. in for see Tinto, good down the plant trying spodumene good gather multiple sources be goes someone to would doubling Becancour and be would would good Quebec, It be It good that certainly for

Operator

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

Gregory Jones

prior to heard the envision wanted up line on you the time current during ratification your comments regarding market If project please. regarding XXXX, the from advancing development a how Just follow occurs I question here? Ewoyaa, do environment.

forward you in down? potential were would Would you slow do quickly you the How it and as as you advance start the think updates? possible? the permit, about get project If situation you where moving

Keith Phillips

Yes, good question. And I'll give our perspective. you

it's think our by I partner. Atlantic, shared

I a We'll company what think have -- call the by will And merger soon new we name be that the by our think partner. time also it's made I a by Sayona, this decision ultimately enough. MergeCo. shared for is

topic So of it's something it's a conversation. --

dilutive mine. invest right would and we a you countercyclically If and really you view a be year, take funded would it's highly the Rio But the say invest to just be the Atlantic. Tinto view or don't highly were do $XXX way, us, a to fair so new that could time at you a $XXX is to not spodumene it to has to think it. be it's that to go if everyone dilutive think trough. time we're build would it that do I We

or We the could That's Washington are organizations Those sources different on development a the conversations basis. for international be joint others, commercial engaging like project take a organizations. with DFC time. will finance banking that in funding debt in

up and the where all ratification. -- that permitting place put a to on put to ready its will from suspect equity So dilution company then the participant the wrap refine year the to we're asset funding And we strongest in I And be footing. to XXXX funding debt minimize go. perspective, the put any really we

Board price not done, And on or basis, does the question boards do the your of IRRs meet then hurdle. spot boards project when, once funding approve probably do all the is, the the -- would that's approve a the any

is this Board everybody a there going are with. think that that to $XXX to to with is very project So test a question at, hurdle spot the answer a projects And say, have from is be pass spodumene deal that I few going perspective.

some That building will to this going change be environment. people expansions say is there going few here to or in one And will up there. brownfield because be in I we spodumene environment. prices no go because -- may are to building or have be nobody, this But think it's

steps early to tell, for we'll is through. a too Greg. waiting guess have stronger But to still it's market. So my We these go be

Operator

for That concludes closing over conference back our I now the will session. Koslow turn Q&A to John remarks.

John Koslow

joining concludes call. you, Thank for morning. Thank operator. today's you That this

release, and a presentation this copy of earnings our piedmontlithium.com. at Thanks, are call website available on a reminder, a our of replay everybody. As

Operator

call. you all gentlemen, Thank and concludes that for Ladies joining. today's

may You now disconnect.

Piedmont Lithium (PLL) 20 Feb 252024 Q4 Earnings call transcript