Australian (ASX) Stock Market Forum

PLL - Piedmont Lithium

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  • Piedmont Lithium to change primary share market listing to the US, retains secondary listing in Australia
  • ‘Recent activity in the US battery materials equity markets validates our efforts to re-domicile Piedmont’

"Recent activity in the US battery materials equity markets validates our efforts to re-domicile Piedmont, and we look forward to completing the work moving our primary listing to Nasdaq, while maintaining a secondary Australian listing,” said president and chief executive, Keith Phillips.
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"It is an exciting time for the battery materials industry in North America. Our North Carolina location places us in an ideal position to play a pivotal role in helping power North America’s electric vehicle and clean energy storage revolutions,” said Phillips.
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Piedmont Lithium has scaled up its forecasts for mineral deposits at its flagship project in North Carolina. The company said on Thursday the global mineral resource estimate at the site was 40 per cent more than previously forecast. The project site now has a mineral resource estimate of 39.2 mT.
“The expanded resource offers the potential for increased annual lithium production something we will evaluate as we prepare our updated scoping study for release next month,” said Keith Phillips, president and chief executive of Piedmont Lithium.
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Eeeeek !

Screenshot_20210721-105819.png
 
PLL fell 20% in the US last night. But yes, it seems there's news available to some but not released to the ASX yet.
 
If this story is true (and there seems no reason to doubt it) why would anyone trust them to execute any better in the future?

GASTON COUNTY, N.C. (Reuters) -In its quest to build one of the largest lithium mines in the United States, Piedmont Lithium Inc has overlooked one crucial constituency: its North Carolina neighbors.​
Piedmont last autumn signed a deal to supply U.S. electric automaker Tesla Inc with lithium sourced from its deposits in North Carolina, sending the company's stock up tenfold.​
Piedmont has also hired investment banks to find investors for its $840 million project, which would include an open-air pit more than 500 feet (152 m) deep and facilities to produce lithium-based electric vehicle (EV) battery chemicals.​
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The company, however, has not applied for a state mining permit or a necessary zoning variance in Gaston County, just west of Charlotte, despite telling investors since 2018 that it was on the verge of doing so.​
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Five of the seven members of the county's board of commissioners, who control zoning changes, say they may block or delay the project because Piedmont has not told them what levels of dust, noise and vibrations will occur, nor how water and air quality would be affected.​
"Piedmont has sort of put the proverbial cart before the horse," said Tom Keigher, chair of the board of commissioners. "Why in the world would they make this deal with Tesla before they even have approval for the mine?"​
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"We finally have a project to debut and really talk about," said Keith Phillips, Piedmont's chief executive officer.​
"Maybe it would have been better had (commissioners) been in the loop constantly. We didn't really have the time or resources to do it and we didn't even know what to tell them, until now."​
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In September 2018, Piedmont told investors it expected to obtain permits by the end of 2019. In August 2019, executives said they would apply for permits and rezoning "in the coming months."​
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Piedmont said both times it was "not aware" of any reason why the county would not approve zoning changes, even though it had yet to present any information to commissioners. In December, Piedmont said it expected to receive local zoning approval before the end of June.​
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Piedmont had been set to meet with commissioners in March, but canceled with three days' notice, further straining the relationship. Piedmont said it canceled that meeting in order to further refine its plans.​
"This has been the worst rollout of a project from a company I've ever seen," said Chad Brown, a commissioner who opposes the mine.​
Phillips, Piedmont's CEO, gave the company's first presentation on the proposed project to commissioners on Tuesday night​
"We haven't done a good job - and I blame myself - engaging with the community," Phillips said at the nearly three-hour-long meeting, which was webcast. One commissioner told Phillips it likely will be easier for the company to raise the necessary $840 million for the project than it will be to secure community support.​
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State officials added their review process could stretch for more than a year as they solicit comments from at least six other state and federal agencies.​
"I'm not even going to accept an application from Piedmont for rezoning until they have their state permit in hand," said Brian Sciba, director of Gaston County's planning and zoning office.​
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'MINE AROUND MY PROPERTY'​
While some landowners are prepared to sell if the offer is enticing enough, others say Piedmont has bullied them.​
"They told me that if I don't sell, they'll just mine around my property," said Emilie Nelson, whose 14 acres Piedmont has tried to buy since 2017.​


au.finance.yahoo.com

In push to supply Tesla, Piedmont Lithium irks North Carolina neighbors

GASTON COUNTY, N.C. (Reuters) -In its quest to build one of the largest lithium mines in the United States, Piedmont Lithium Inc has overlooked one crucial constituency: its North Carolina neighbors. Piedmont last autumn signed a deal to supply U.S. electric automaker Tesla Inc with lithium...
au.finance.yahoo.com au.finance.yahoo.com
 
Welcome to the reality of a green future world and the metals necessary for it. There is a reason why China dominates the processing of Lithium. As the American Democrats would say "how hard is it to dig a mine". They want the "clean" energy without the dirty shovels.
 
Since July 21, PLL published some good stories including the BFS but possibly lost credibility before the market after their crash happened with some perceived insider knowledge.
Today again PLL is going down against the lithium trend. Could there be something under the sleeve to surprise the market again?
DNH and looking for an opportunity however if it goes below 70.



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Marcus "Today" Padley had a thing about Lithium recently.

The thirst for lithium will not be quenched anytime soon. “There are 200 new battery megafactories in the pipeline by 2030 and 122 are already operational. China is pegged for 148 of them,” read the Marcus Today memo. “If all 200 were to be producing batteries at full capacity, annual demand would be 3 million tonnes. To put that in perspective, that is 37 times what was produced in 2020.”
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Piedmont Lithium Inc shares have doubled since the start of the year, but all of that gain was realised by mid-February. Thus, the stock price has been flat for 10 months. “This company has a North American focus in North Carolina. It has hard rock lithium in 3 locations,” stated the Marcus Today team. “It is going through… environmental hurdles. There are still plenty of boxes to be ticked.”
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However, the memo noted this is not a binary outcome stock, as Piedmont has other projects in progress — one in Canada and another in Ghana. “Capex again will be relatively high at $839 million but it should pay that back in under three years,” the team stated. “Just for good measure, it is also ESG friendly.”
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and, no wonder the shareprice went down. The Marcus Army probably on holidays, as well.
 
Couple of announcements today -

Carolina Lithium Advancing Toward Final Investment Decision

International Investments Support Plans for Additional U.S. Hydroxide Production

  • Piedmont expects to double U.S. lithium hydroxide production to 60,000 tpy
    • 30,000 tpy at the fully integrated Carolina Lithium Project
    • 30,000 tpy at a second planned U.S. plant, with site selection expected in Q2 2022
    • Piedmont plans to produce or has offtake rights to an estimated 500,000 tpy of SC6 production
  • Flagship Carolina Lithium Project is advancing toward a Final Investment Decision
    • Bankable Feasibility Study (BFS) published in December 2021
    • Economic Impact Study (EIS) published in January 2022
    • Key workstreams for 2022
      • Detailed engineering / Front End Engineering Design
      • EPC contractor selection
      • Final permitting and approvals
      • Strategic partnering and potential project debt financing
  • Investments in strategic resources in Quebec and Ghana position Piedmont for future growth
    • Partnering with Sayona Mining (ASX: SYA) to develop one of Quebec’s leading lithium businesses
      • Planned H1 2023 restart of North American Lithium’s spodumene concentrate plant
      • Piedmont holds offtake rights to 50% of NAL production life-of-mine
    • Partnering with Atlantic Lithium (AIM: ALL) to develop a world-class spodumene resource in Africa
      • Expected increases to mineral resource estimates in 2022 based on recent drill results
      • Feasibility Study (FS) expected late-2022; investment decision to follow............
 
What's the reason for the past two large SP increases?
 

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My 2nd pick

PLL is dual listed, NASDAQ and ASX.

It is at 100/1 ratio, so currently it is US$44 on NASDAQ and 64cents on ASX.

AU64c x 100 x exchange rate(0.68) = US$44.

So when you read valuations of $180, don't get too excited, they are talking the NASDAQ price.

Positives
  • As JohnDe has noted above, PLL has 4 projects in the pipeline, so well diversified in the lithium space.
  • Near term producer via NAL/SYQ. PLL also has an agreement with SYA where PLL has rights to the 1st 113000t ( I tried clarifying this, but it turned into an unreadable mess, basically the agreement was made when Lithium prices were low, so now it becomes a windfall for PLL at SYA's expense, is how it looks to me)
  • USA policies are supportive of North American lithium projects.
Their November 2022 presentation lays it all out.

Rodney Hooper has a few youtube vids that are positive on PLL, some of Rodney's presentations look agricultural at their start, but he presents good info and reasoning.
 

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