© Reuters.
Piedmont Lithium Inc (NASDAQ:PLL) marked a significant milestone in Q3 2023, transitioning into a revenue-generating entity after its initial customer shipments under an agreement with North American Lithium (NAL). This transformative period saw the company generate its first revenue and profit of $47.1 million from the sale of 29,011 dmt of lithium concentrate, reflecting a gross profit margin of 50.4%. The diluted earnings per share stood at $1.19, while the adjusted diluted earnings per share were $0.88.
Despite a challenging market environment characterized by a 45% drop in spot lithium prices, Piedmont managed to record a net income of $22.9 million and an adjusted net income of $16.9 million. The company had cash reserves amounting to $94.5 million at the end of Q3.
Looking ahead, Piedmont Lithium plans to ship approximately 56,500 dmt of lithium concentrate by year-end, remaining on track to meet its full-year shipment guidance. This optimism is fueled by a consistent surge in lithium demand propelled by robust global EV demand and an increase in battery pack capacity.
The firm’s confidence also stems from a 35% year-to-date unit sales growth and record high global EV penetration of 18% in 2023, spurred by the Inflation Reduction Act. With the aid of federal government finance agencies and an aim to minimize dilution to existing shareholders, Piedmont plans to advance the rest of its projects.
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