NASDAQ$PLL

Piedmont Lithium Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Inaugural revenue and profit were recorded on commencement of lithium concentrate shipments.

Piedmont Lithium reported its Q3 2023 results, marking a transformational quarter with its first customer shipments from the North American Lithium joint-venture. The company achieved revenue of $47.1 million, a gross profit of $23.8 million, and a net income of $22.9 million. However, results were impacted by a 45% decline in spot lithium prices during the quarter.

  • Revenue of $47.1 million was achieved on sales of 29,011 dry metric tons (dmt) of lithium concentrate.
  • Gross profit reached $23.8 million, with a gross profit margin of 50.4%.
  • Net income was reported at $22.9 million, and adjusted net income was $16.9 million.
  • Cash and cash equivalents totaled $94.5 million as of September 30, 2023.

Headline financials

Total Revenue

$47.1M

Previous: $0.00
EPS (adj)

$0.88

Previous: -$0.70+225.7%
Concentrate shipped (dmt thousands)

29.0K

No prior period
Realized price per dmt

$1.62K

No prior period
Realized cost of sales per dmt

$805.00

No prior period
Gross profit margin

50.4%

No prior period
Capital Expenditures

-$39.3M

Previous: $10.4M-479.6%
Free Cash Flow

-$14.6M

Previous: -$14.5M-0.1%
Net Income

$22.9M

Previous: $16.7M+37.4%
Operating Income

$16M

Previous: -$9.6M+266.3%
Gross Profit

$23.8M

No prior period
Cash & Equivalents

$94.5M

Previous: $118M-19.6%
Total Assets

$397M

Previous: $298M+33.4%
Stock-Based Comp

$3.07M

Previous: $1.26M+143.4%

Revenue & EPS history

Piedmont Lithium · Revenue · Quarterly

$47.1M

Q3 2023
Beat estimate in 2 of 9 quarters(22%)
ActualEstimate

Forward guidance

Piedmont Lithium anticipates shipping approximately 27,500 dmt of lithium concentrate in Q4 2023, confirming the full-year guidance of approximately 56,500 dmt for the start-up year, 2023. Capital expenditures are expected to be $18 million - $22 million. Investments in and advances to affiliates are projected to be $10 million - $14 million.

Tailwinds

  • Confirmation of full-year shipment guidance of approximately 56,500 dmt of lithium concentrate.
  • Expected shipments of approximately 27,500 dmt in Q4 2023.
  • Focus on advancing projects with the assistance of federal government finance agencies and strategic partners.
  • Commitment to minimizing dilution to existing shareholders.
  • Strong global EV demand with unit sales growth and increasing battery pack capacity.

Headwinds

  • Material impact from the 45% decline in spot lithium prices during the quarter.
  • Initial shipments being made on the spot market due to the ramp up of long-term contracts.
  • Benchmark spodumene concentrate price fell significantly during the quarter.
  • Uncertainties related to Sayona Mining or Atlantic Lithium data and projections.
  • Risks related to competition and ability to achieve profitability.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

-1.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-12.9%

Avg return

30 days after

59%

10 / 17 earnings

Positive

+9.9%

Q3 2024

Best reaction

-26.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025+2.5%+10.7%
Q1 2025+2.8%-1.3%-12.5%
Q4 2025+3.7%-6.1%-13.0%
Q3 2024+9.9%-3.8%-5.8%
Q2 2024-7.3%-12.2%-25.2%
Q1 2024+0.7%+19.2%-7.6%
Q4 2023-13.9%-5.0%-13.6%
Q3 2023+0.5%
Q2 2023-3.8%
Q1 2023+9.1%
Q4 2022-3.6%
Q3 2022+0.2%
Q2 2022+3.6%
Q1 2022-26.7%
Q4 2021+1.1%
Q1 2021-2.1%
Q2 2021-4.6%
Q2 2015

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