Why Did Piedmont Sell Shares in Atlantic Lithium?

Piedmont Lithium Advances Capital Strategy with Atlantic Shares Sale

BELMONT, North Carolina, January 18, 2024 - Piedmont Lithium, a major player in the lithium resources sector crucial to the U. S. electric vehicle supply chain, has announced a significant financial transaction involving the sale of a portion of its shares in Atlantic Lithium to Assore International Holdings.

Sale of Atlantic Shares to Assore: A Lucrative Deal

Piedmont Lithium has entered into an agreement to sell 24. 3 million shares of Atlantic Lithium for GBP 0. 25 per share. This sale price represents a premium to the prevailing market price.

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The transaction will generate approximately US$7. 8 million in proceeds for Piedmont. Following this sale, Assore International Holdings will own about 28. 4% of Atlantic Lithium.

Piedmont's Remaining Stake

Post-transaction, Piedmont will retain ownership of 32. 7 million Atlantic shares, equating to approximately 5. 2% of Atlantic. Importantly, this sale does not affect Piedmont's joint venture, earn-in, or offtake position with Atlantic or the Ewoyaa project.

Piedmont Lithium's Financial Position: Strong Financial Standing

Keith Phillips, President and CEO of Piedmont Lithium, stated, "We finished 2023 in a strong position with approximately US$72 million in cash and US$47. 4 million in marketable securities as of market close on January 17. " He emphasized the Company's view of its Atlantic shares as a potential source of capital and expressed satisfaction with the bolstered cash balance following the agreement.

Disciplined Capital Deployment

Phillips also highlighted the company's disciplined approach to deploying capital in the current lithium price environment. He reaffirmed confidence in the potential of Ewoyaa as a logistically advantaged, low-cost spodumene concentrate producer, aligning with the company's strategy for the anticipated recovery in the lithium market.

Piedmont Lithium's Operational Highlights: American Lithium Mining Pioneer

Piedmont Lithium, based in the Carolina Tin Spodumene Belt of North Carolina, is positioned as one of the world’s lowest-cost producers of lithium hydroxide. The company plays a strategic role in serving the U. S. electric vehicle supply chain.

Diverse Market Service and Sustainability

The company serves a broad range of markets, from Lithium-ion battery metals to essential minerals for consumer and industrial products. They employ sustainable technologies in their production process, emphasizing their commitment to being a low-carbon producer and a socially responsible business.

Recent Financial Performance

In the third quarter of 2023, Piedmont Lithium reported inaugural revenue and profit following the commencement of lithium concentrate shipments. The company recorded a revenue of $47. 1 million on sales of 29,011 dmt of lithium concentrate, a gross profit of $23. 8 million (50. 4% gross profit margin), and a net income of $22. 9 million.

Piedmont Lithium's Strategic Financial Maneuvering

Piedmont Lithium's sale of Atlantic Lithium shares to Assore represents a strategic move in strengthening its financial position. It reflects a calculated approach to capital management while maintaining significant involvement in the promising Ewoyaa project. This transaction, combined with their robust operational performance, positions Piedmont Lithium advantageously in the evolving global lithium market.

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