As part of its offtake agreement with North American Lithium (NAL), Piedmont Lithium was pleased to announce they have received a partial prepayment of $31.6 million for the sale of 15,000 dmt of 5.4% lithium concentrate.
A major milestone has been reached in Piedmont Lithium Inc (ASX: PLL) quest to become a global provider of lithium resources to the US supply chain with the receipt of the first payment for NAL’s first shipment of lithium concentrate.
A large international trading business purchased 15,000 dry metric tonnes of 5.4% lithium concentrate from the company on a free-on-board (FOB) vessel basis, and the company has now received a partial payment in the amount of US$31.6 million. Midway through the month of September is when the vessel is going to be loaded with its cargo in preparation for the shipment.
Future Lithium Shipments Will Increase
The first shipment of lithium concentrate under the company’s offtake agreement with NAL and the receipt of a prepayment greatly enhance the company’s cash position, making it a historic one for Piedmont Lithium.
Additional exports and JV shipments are scheduled for 2023, and Piedmont Lithium anticipates using the resulting revenue to fund strategic initiatives and reduce the company’s reliance on the equity market.
According to Piedmont, its offtake and joint venture partner North American Lithium (NAL) has been producing commercially since March of this year and has already sent its first JV shipment of 20,500 dry metric tonnes to a third party.
The remaining 56,500 dry metric tonnes of lithium concentrate from Piedmont 2023 offtake allocation will be sold by the JV the company said in their announcement.
The company stated that it now has a cash reserve of around US$100 million, indicating a robust balance sheet that will allow it to pursue its objectives.
Piedmont president and CEO Keith Phillips stated:
This is a significant day for Piedmont Lithium as we announce the first shipment of lithium concentrate under our offtake agreement with NAL and the receipt of a prepayment, which significantly increases our cash position.
