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Piedmont Lithium banks US$31.6m pre-payment for inaugural sale of NAL concentrate

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By Imelda Cotton - 
Piedmont Lithium ASX PLL inaugural sale NAL concentrate offtake
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Piedmont Lithium (ASX: PLL) has banked a US$31.6 million partial pre-payment for the inaugural sale of 15,000 dry metric tons of lithium concentrate from the North American Lithium (NAL) joint venture operation in Canada.

The funds were received from a major international trading company for shipment of the 5.4% grade lithium oxide product on a free-on-board basis in mid-September.

The payment has increased Piedmont’s cash position to approximately US$100 million and reinforced its strong balance sheet.

Start of commercial production

NAL started commercial production in March and delivered its first shipment of 20,500dmt of lithium concentrate to a third-party earlier this month.

Production ramp up is reported to be progressing well and Piedmont expects to receive its full 2023 offtake allocation of 56,500dmt, with the balance to be sold by the joint venture.

Under an offtake agreement signed earlier this year, the company is entitled to the greater of 113,000 tonnes or 50% of spodumene concentrate production in a calendar year.

Milestone for the operation

Piedmont president Keith Phillips said the partial pre-payment was a milestone for the NAL operation.

“This is a significant day as we announce the receipt of a pre-payment [for concentrate] which increases our cash position,” he said.

“We look forward to receiving our additional shipments… we expect sales [from those shipments] to help fund our strategic initiatives while reducing our need to raise equity in the market.”

First shipment

NAL is a joint venture between Piedmont (25%) and lithium producer Sayona Mining (ASX: SYA) (75%).

The operation completed its first shipment of 20,500dmt into the global spot market in early August via a major trading company.

The shipment took place less than two years after the partners acquired NAL in June 2021, along with its facility in Quebec’s Abitibi-Temiscamingue region.

The operation is believed to be the foundation of plans to develop a lithium hub in Quebec.

Piedmont and Sayona have committed to developing downstream processing capabilities by 2026.

Mr Phillips said NAL was well positioned to meet the ever‐growing demand for lithium and play a role in the global energy transition.