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Sunday, May 19, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Lithium

Piedmont Lithium shares shoot up 16% after acquiring key mining permit

The company waited over 2.5 years for the approval

Piedmont Lithium shares shoot up 16% after acquiring key mining permit
Piedmont has adopted a 2.5-mile stretch of road near the newly permitted Carolina lithium project. Photo credit: Piedmont Lithium

North Carolina’s Piedmont Lithium (Nasdaq: PLL) received a key mining permit for its proposed Carolina lithium project in the state after waiting more than 2.5 years for approval. Shares of the company had risen by 15.9 per cent at market close on Monday following the news.

The permit was approved by the state’s Department of Environmental Quality and its Division of Energy, Mineral, and Land Resources. It authorizes the construction, operation and reclamation of the site.

“We plan to develop Carolina as one of the lowest-cost, most sustainable lithium hydroxide operations in the world,” President Keith Philips said. “The project is being designed as a fully integrated mining, spodumene concentrate and lithium hydroxide manufacturing operation.”

Philips says there are currently no sites with the same characteristics anywhere in the world. The Carolina deposit is one of the largest in the United States and the mine is expected to reach a depth of 500 metres.

Piedmont still needs financing for the operation. It has considered the U.S. Department of Energy and other “strategic parties” as possible financiers.

Read more: Lithium South explores alternative production methods at Hombre Muerto North

Read more: Lithium South completes pumping test in Alba Sabrina Tenement

Lithium price drop may delay plans

The company recently cut 27 per cent of its workforce as part of a US$10 million cost-cutting initiative. This was due to the current low price of lithium and its impact on the industry. Some analysts predict that Piedmont may have issues with its financing goals because of this.

The value of the battery metal has plummeted by approximately 80 per cent since last spring.

Piedmont is known to have a spodumene concentrate supply deal with Tesla (Nasdaq: TSLA) active until next year. However, Tesla will have the option to renew it for three years in 2025.

North Carolina is home to the world’s largest lithium company: Albemarle Corporation (NYSE: ALB).

 

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