Piedmont Lithium Inc. (NASDAQ:PLL) shares are trading lower after the company reported a second-quarter FY24 revenue of $13.23 million, which missed the consensus of $18.15 million.

In the quarter, Piedmont shipped about 14,000 dry metric tons (DMT) of spodumene concentrate under long-term contracts, and the realized price per ton was $945, up from $865 the previous quarter.

North American Lithium (NAL) produced around 49,700 DMT of spodumene concentrate, up 23% Q/Q. Lithium recovery and mill utilization reached new highs at 68% and 83%, respectively.

Piedmont stated that the crushed ore dome was commissioned in the quarter, and steady production is anticipated in the second-half od the year.

The company reported an adjusted EPS loss of $0.65, missing the consensus loss of $0.26.

Outlook: Piedmont expects shipments of 126 thousand DMT of spodumene concentrate in FY24, 30-34 thousand DMT in the third quarter, and 63-67 thousand DMT in the fourth quarter.

The company says that shipments may vary quarterly due to constraints and customer needs, and most shipments will be long-term contracts or spot sales to manage risk, supported by steady production at North American Lithium.

Keith Phillips, President and CEO of Piedmont Lithium, said, "In H2'24, we expect to sell the majority of our 2024 NAL offtake, prioritizing contract customers and structuring spot shipments to limit our downside exposure. Capital allocations and investments in affiliates are anticipated to be modest given the completion of the NAL ramp-up and expected timing of Ewoyaa development."

"Given the prevailing market realities, we have taken steps to help ensure our long-term competitive position and the preservation of the upside of our assets. These steps include the decision to consolidate our U.S. lithium hydroxide development strategy by moving our planned Tennessee Lithium conversion capacity to Carolina Lithium."

"The receipt of the mining permit in Q2 has made Carolina Lithium the focus of our U.S. development and allowed us to actively engage with potential strategic partners interested in a project-level investment."

"While lithium prices have remained depressed, we are encouraged by the growth across the electrification sector and the long-term potential of the lithium market. The world continues to move toward electrification, which will require exponentially more lithium than is produced today in the U.S. and globally."

Investors can gain exposure to the stock via Sprott Lithium Miners ETF (NASDAQ:LITP).

Price Action: PLL shares are down 3.58% at $8.63 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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