Piedmont Lithium Inc (PLL) Reports Inaugural Revenue and Profit in Q3 2023
Piedmont Lithium Inc (NASDAQ:PLL) reports Q3 2023 revenue of $47.1 million on sales of 29,011 dry metric tons (dmt) of lithium concentrate.
The company records a gross profit of $23.8 million, reflecting a gross profit margin of 50.4%.
Net income stands at $22.9 million with adjusted net income of $16.9 million.
PLL confirms full-year shipment guidance of approximately 56,500 dmt of lithium concentrate.
On November 7, 2023, Piedmont Lithium Inc (NASDAQ:PLL) released its financial results for the third quarter of 2023. The company reported its inaugural revenue and profit, marking a significant milestone in its journey. The revenue for the quarter stood at $47.1 million, generated from the sales of 29,011 dry metric tons (dmt) of lithium concentrate.
Financial Performance
The gross profit for the quarter was $23.8 million, reflecting a gross profit margin of 50.4%. The net income was reported at $22.9 million, with an adjusted net income of $16.9 million. The diluted earnings per share were $1.19, and the adjusted diluted earnings per share were $0.88. The company also reported an adjusted EBITDA of $16.2 million, reflecting an adjusted EBITDA margin of 34.3%.
Cash Position and Guidance
As of September 30, 2023, the company had cash and cash equivalents of $94.5 million. PLL is on track to deliver its full-year shipment guidance of approximately 56,500 dmt of lithium concentrate.
Operational Highlights
The third quarter was transformational for Piedmont as it made its first customer shipments under its offtake agreement with its joint-venture operation, North American Lithium. As a result, Piedmont became a revenue-generating lithium company and recorded adjusted net income of $17 million and adjusted earnings per share of $0.88.
Market Outlook
Despite a 45% decline in spot lithium prices during the quarter, the company remains optimistic about the future. The demand for electric vehicles (EV) remains strong globally, with unit sales growth of 35% year to date and global EV penetration a record high of 18% in 2023. The company expects the U.S. electric vehicle market to grow significantly, driven by the positive stimulus provided by the Inflation Reduction Act.
Future Plans
With North American Lithium in production, Piedmont looks forward to advancing the rest of its projects, with the assistance of federal government finance agencies and strategic partners where possible, and always with a view to minimizing dilution to existing shareholders.
Explore the complete 8-K earnings release (here) from Piedmont Lithium Inc for further details.
This article first appeared on GuruFocus.
