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Piedmont Lithium Ltd (PLL)
NASDAQ:PLL
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Piedmont Lithium
(NASDAQ:PLL)
50Neutral
Positive Factors
Merger Benefits
The announced Piedmont/Sayona merger simplifies the NAL ownership/offtake structure and provides MergeCo with full exposure to rising commodity prices.
Production Growth
The merger provides a path forward for NAL brownfield expansion with potential to double production.
Negative Factors
Shipment Guidance
FY24 shipment guidance has been lowered to 102-116kt versus initial guidance of 126kt due to a customer request to shift a planned cargo.
Piedmont Lithium (PLL) vs. S&P 500 (SPY)
Market Cap
$161.07M
Dividend YieldN/A
Average Volume (3M)296.61K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees63
SectorBasic Materials
Sector Strength63
IndustryMining
Share Statistics
EPS (TTM)-3.32
Shares Outstanding21,943,521
10 Day Avg. Volume396,876
30 Day Avg. Volume296,610
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.67
Price to Cash Flow (P/CF)-6.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.25Price Target Upside12.40% Upside
Rating ConsensusHold
Number of Analyst Covering1
Piedmont Lithium Business Overview & Revenue Model
Company DescriptionPiedmont Lithium (PLL) is a multinational mining company focused on the exploration and production of lithium resources. The company is primarily involved in developing lithium projects in strategic locations, with a significant emphasis on its flagship project in North Carolina, USA. Piedmont Lithium aims to support the growing electric vehicle and battery storage markets by providing a reliable supply of this critical raw material.
How the Company Makes MoneyPiedmont Lithium makes money by mining and selling lithium concentrate extracted from its projects. The company enters into offtake agreements with manufacturers of lithium-ion batteries and electric vehicles, ensuring a steady demand for its product. Revenue is primarily generated through the sale of lithium hydroxide and spodumene concentrate, which are essential components in battery production. Additionally, strategic partnerships with major industry players help to secure funding and facilitate the development of its mining operations.
Piedmont Lithium Financial Statement Overview
Summary
Piedmont Lithium's financials demonstrate significant profitability and cash flow challenges, with negative net profit margins and declining revenue. The balance sheet indicates low leverage but negative equity returns due to losses, and cash flow issues further compound the financial stability concerns.Income Statement
Piedmont Lithium shows a high negative net profit margin of -168.3% TTM, reflecting significant losses relative to revenue, with a negative revenue growth rate of -16.5%. The EBIT and EBITDA margins are also very negative, at -116.6% and -119% TTM, indicating operating challenges. The gross profit margin has decreased from 14.3% in the previous year to -3% TTM. Despite growing revenues, the company is struggling with profitability.45
Neutral
Balance Sheet
The company maintains a debt-to-equity ratio of 0.09 TTM, suggesting low leverage, which is a positive. However, the equity ratio has declined slightly to 86.9% TTM, indicating a strong equity base but a decrease from the previous year. Return on equity is negative at -27.6% TTM due to net losses, posing a significant concern regarding profitability. The balance sheet reflects a strong equity position but highlights profitability challenges.50
Neutral
Cash Flow
Cash flow analysis reveals a negative free cash flow growth rate of -14.7% TTM, highlighting worsening cash generation. Operating cash flow to net income ratio is -0.51 TTM, indicating cash flow issues relative to income loss. The free cash flow to net income ratio is 0.59 TTM, showing limited cash retention from losses. Overall, cash flow management is a significant concern for sustainability.40
Negative
| Breakdown | |||
| TTM | Dec 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 47.13M | 0.00 | 0.00 | 0.00 | Gross Profit |
| 23.76M | 0.00 | 0.00 | 0.00 | EBIT |
| -22.77M | -39.74M | -19.74M | -10.42M | EBITDA |
| -7.30M | -9.56M | -19.80M | -10.42M | Net Income Common Stockholders |
| -7.29M | -12.97M | -19.99M | -9.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 9.58M | 99.73M | 142.65M | 4.43M | Total Assets |
| 11.21M | 287.92M | 187.85M | 6.78M | Total Debt |
| 0.00 | 1.89M | 2.45M | 2.59M | Net Debt |
| -9.58M | -97.36M | -140.20M | -1.85M | Total Liabilities |
| 1.02M | 17.63M | 7.44M | 2.14M | Stockholders Equity |
| 10.18M | 270.29M | 180.41M | 4.64M |
| Cash Flow | Free Cash Flow | ||
| -47.82M | -52.18M | -34.46M | -11.35M | Operating Cash Flow |
| 995.94K | -26.45M | -16.26M | -9.81M | Investing Cash Flow |
| -94.48M | -59.80M | -34.57M | -1.55M | Financing Cash Flow |
| 70.39M | 121.25M | 174.62M | 8.32M |
Piedmont Lithium Technical Analysis
Negative
7.34
Price Trends
8.37
Negative
10.12
Negative
10.13
Negative
Market Momentum
-0.39
Negative
44.65
Neutral
70.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLL, the sentiment is Negative. The current price of 7.34 is below the 20-day moving average (MA) of 7.66, below the 50-day MA of 8.37, and below the 200-day MA of 10.13, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLL.
Piedmont Lithium Risk Analysis
Piedmont Lithium disclosed 36 risk factors in its most recent earnings report. Piedmont Lithium reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Piedmont Lithium Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $5.19B | 15.23 | 9.02% | 5.58% | -5.36% | -74.25% | |
60 Neutral | $11.19B | ― | -6.22% | 3.26% | -39.35% | -120.10% | |
50 Neutral | $161.07M | ― | -6.55% | ― | ― | ― | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% | |
42 Neutral | $8.54B | ― | -12.18% | 2.11% | -44.08% | -183.44% |
* Basic Materials Sector Average
Performance Comparison
PLL
Piedmont Lithium
7.43
-5.86
-44.09%
ALB
Albemarle
72.67
-49.37
-40.45%
FMC
FMC
41.38
-19.94
-32.52%
SQM
Sociedad Quimica Y Minera SA
42.71
-7.06
-14.19%
Piedmont Lithium Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -10.49% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record shipments, successful cost reductions, and strategic mergers. However, these were counterbalanced by challenges including net losses, negative cash flows, and market uncertainties impacting future prospects.Highlights
Record Shipments and Revenue
Piedmont Lithium shipped approximately 55,700 dry metric tons in Q4, setting a quarterly record. The company also achieved a record for the full year with 117,000 dry metric tons shipped. Revenue for the quarter was $45.6 million, an increase from $27.7 million in the previous quarter.
Cost Reduction Success
The company successfully implemented a 2024 cost savings plan, achieving $14 million in annual run rate cost savings, surpassing the initial target of $10 million.
Strong Operational Performance
North American Lithium (NAL) achieved strong production metrics with nearly 51,000 tons produced in Q4 2024 and over 190,000 tons produced for the full year. Unit costs per ton declined by nearly 20% from the start of the year.
Permitting Progress
Piedmont received a Mine Operating Permit for the Ewoyaa Lithium Project from the Minerals Commission of Ghana, pending parliamentary ratification. The state mining permit for Carolina Lithium was also received, with optimism for air and water permits in 2025.
Merger with Sayona Mining
Piedmont announced a merger with Sayona Mining to create the largest current lithium producer in North America. The merger is expected to bring annual synergies of $15 million to $20 million.
Lowlights
GAAP Net Loss
The company reported a GAAP net loss of $11.1 million for Q4 or a loss of $0.55 per share.
Negative Cash Flows
Operating cash flows for the fourth quarter were negative $6 million, and for the full year, negative $43 million.
Lithium Market Challenges
The company acknowledged a soft lithium market with potential narrowing contango in lithium futures, impacting future price realizations.
Delay in Ewoyaa Project
The ratification process for the Ewoyaa Lithium Project was paused due to Ghana's election, delaying the project's advancement.
Company Guidance
During the Q4 and full year 2024 earnings call for Piedmont Lithium, the company highlighted several key performance metrics and strategic developments. North American Lithium achieved strong operational results, producing nearly 51,000 tons in Q4 and over 190,000 tons for the full year 2024. The company recorded a cash operating cost of $709 per ton in Q4, marking a new low. Piedmont's shipments reached approximately 55,700 dry metric tons in Q4, contributing to a total of 117,000 dry metric tons for the year, both records for the company. Revenue for Q4 was $45.6 million, up from $27.7 million in the previous quarter, with a realized price of $818 per metric ton. Despite a GAAP net loss of $11.1 million for Q4, the company executed a cost savings plan, achieving $14 million in total annual savings. Looking forward, Piedmont expects to ship 113,000 to 130,000 dry metric tons in 2025 and plans to further reduce CapEx and joint venture investments significantly. The company also discussed its strategic merger with Sayona Mining, aiming to create the largest lithium producer in North America with anticipated synergies of $15 million to $20 million annually.Piedmont Lithium Corporate Events
Executive/Board ChangesM&A Transactions
Piedmont Lithium Announces Executive VP and COO Retirement
Neutral
Dec 9, 2024
Piedmont Lithium Inc. announces the retirement of its Executive VP and COO, Patrick Brindle, effective December 31, 2024. Brindle will assist in transitioning his duties during this period while receiving his current salary and benefits. The Separation Agreement includes a lump sum payment of $31,147 and potential additional compensation if a merger with Sayona Mining Limited finalizes by the end of 2025. Brindle’s stock awards will vest fully upon his departure, subject to certain conditions including non-competition and confidentiality clauses.
Business Operations and StrategyFinancial Disclosures
Piedmont Lithium Reports Record Q3 2024 Production Growth
Positive
Oct 28, 2024
Piedmont Lithium Inc. reported a significant increase in its Q3 2024 operations, shipping 31,500 dry metric tons of spodumene concentrate, with a record production of 52,141 dmt, marking a 5% rise from the previous quarter. The North American Lithium operation, jointly owned with Sayona Mining, achieved a remarkable 91% mill utilization and 67% lithium recovery, leading to improved operational cost efficiency. The company anticipates further growth with adjusted shipment targets, bolstered by NAL’s status as the largest spodumene mine in North America.
Business Operations and Strategy
Piedmont Lithium Advances with Ghana Mining Permit
Positive
Oct 9, 2024
Piedmont Lithium Inc., a key player in the North American lithium market vital for the electric vehicle supply chain, announced that their joint venture, the Ewoyaa Lithium Project in Ghana, has secured a Mine Operating Permit from the Minerals Commission of Ghana. This significant achievement marks a step forward in the regulatory process, moving the project closer to construction, contingent on further approvals and market conditions. The project, developed with Atlantic Lithium, underscores Piedmont Lithium’s strategy to become a major lithium hydroxide producer and contribute to a net-zero energy future.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.