Exhibit
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Description
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Press Release
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Piedmont Lithium Limited
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(registrant)
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Date: July 30, 2020
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By: /s/ Keith Phillips
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Name: Keith Phillips
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Title: President and Chief Executive Officer
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•
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Completed an updated scoping study for Piedmont’s integrated mine-to-hydroxide project. The mine-to-hydroxide project comprises
a mine and concentrator producing spodumene concentrate which will be transported to Piedmont’s Chemical Plant and converted into battery-grade lithium hydroxide. The updated scoping study includes the results of the new Chemical Plant
PFS.
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•
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Completed additional metallurgical testwork to produce 120 kilograms of spodumene concentrate from core samples collected from
the Piedmont Lithium Project. Concentrate qualities and recoveries were consistent with earlier testwork programs.
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•
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Completed a bench-scale lithium hydroxide testwork program at SGS Canada, Inc. in Lakefield, Ontario which demonstrated
conversion of Piedmont ore to battery-quality lithium hydroxide.
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•
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Entered into a memorandum of understanding (“MOU”) with Primero Group (“Primero”) for the delivery of Piedmont’s planned
spodumene concentrator on an engineer, procure, and construct (“EPC”) basis, with Primero to contract operate the spodumene concentrator for a period of up to six years following construction.
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•
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Concluded a definitive and exclusive marketing agreement for byproduct quartz, feldspar, and mica with Ion Carbon, a division
of AMCI. The Company continues to advance offtake discussions for byproducts with quartz offtake discussions the most advanced.
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•
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Appointed Mr. Austin Devaney as Vice President – Sales & Marketing. Mr. Devaney spent most of the past decade in senior
marketing roles with Albemarle Corporation, most recently as Vice President, Strategic Marketing and Customer Excellence.
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•
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Completed a U.S. public offering of 2,065,000 of its American Depositary Shares (“ADSs”), each representing 100 of its ordinary
shares, including the exercise of the underwriters’ over-allotment option, at an issue price of US$6.30 per ADS, to raise gross proceeds of US$13.0 million (~A$18.6 million) (“Public Offering”).
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•
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Piedmont has also received commitments from existing non-U.S. institutional and sophisticated shareholders and directors for
120,000,000 of its fully paid ordinary shares, at an issue price of A$0.09 per share (which equates to the same issue price of the Public Offering), to raise gross proceeds of A$10.8 million (“Private Placement”). Completion of the Private
Placement is subject to shareholder approval.
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Keith Phillips
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Tim McKenna
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President & CEO
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Investor and Government Relations
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T: +1 973 809 0505
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T: +1 732 331 6457
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E: kphillips@piedmontlithium.com
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E: tmckenna@piedmontlithium.com
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Table 1: Piedmont Merchant Project Key Economic Outcomes
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Unit
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Estimated Value
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Initial capital cost
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US$M
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$377
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Life of Project lithium hydroxide cash costs
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US$/t
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$6,689
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Life of Project revenue (real)
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US$M
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$7,336
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Life of Project EBITDA
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US$M
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$3,627
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Net operating cash flow after tax
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US$M
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$2,911
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Free cash flow after capital costs
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US$M
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$2,380
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Average annual steady state EBITDA
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US$M/y
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$149
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Average annual steady state free cash flow
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US$M/y
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$114
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After tax Net Present Value (NPV) @ 8% discount rate
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US$M
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$714
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After tax Internal Rate of Return (IRR)
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%
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26%
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Payback from start of operations
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y
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3.34
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◾
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25-year project life with Mine/Concentrator and Chemical Plant constructed in a single phase
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◾
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1st quartile operating costs
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−
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Lithium hydroxide cash costs of US$3,712/t (AISC of US$4,209/t)
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−
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Spodumene concentrate cash costs of US$201/t (AISC of US$240/t)
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◾
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Exceptional project economics
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−
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NPV8 of US$1.1B
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−
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After-tax IRR of 26%
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−
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Steady-state annual average EBITDA of US$218M
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◾
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Mine/Concentrator and Chemical Plant engineering completed to PFS-level
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Table 3 – Results of Piedmont Lithium Hydroxide Testwork Compared with Industry
Specifications
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Product
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Unit
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PLL Results
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China Spec1
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Livent Spec2
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Ganfeng Spec2
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LiOH
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(%)
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>56.5
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≥56.5
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56.5
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56.5
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Na
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ppm
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<20
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≤80
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20
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20
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K
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ppm
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<10
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≤20
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10
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10
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Fe
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ppm
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<2
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≤8
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5
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5
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Ca
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ppm
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<9
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≤200
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15
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15
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Cu
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ppm
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<1
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-
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5
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5
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Mg
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ppm
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<0.7
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-
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-
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10
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Si
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ppm
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8
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-
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30
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30
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Cl
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ppm
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<10
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≤50
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20
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20
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SO4
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ppm
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<100
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≤150
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100
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100
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CO2
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%
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0.48
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0.40
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0.35
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0.50
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Table 4: Results of Combined DMS + Locked Cycle Flotation Testwork Results
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Product
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Li2O (%)
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Fe2O3 (%)
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Recovery (%)
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Spodumene Concentrate
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6.21
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0.87
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82.4
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Table 5: Average of Results of Six Locked Cycle Byproduct Tests
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Li2O
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SiO2
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Al2O3
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K2O
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Na2O
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CaO
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MgO
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MnO
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P2O5
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Fe2O3
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Quartz Concentrate
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0.02
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99.0
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0.32
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0.04
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0.11
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0.01
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0.01
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0.01
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0.01
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0.01
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Feldspar Concentrate
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0.12
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68.0
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19.35
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2.45
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9.30
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0.17
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0.04
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0.01
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0.15
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0.05
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Name of entity
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Piedmont Lithium Limited
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ABN
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Quarter ended (“current quarter”)
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50 002 664 495
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30 June 2020
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Current quarter
US$000 |
Year to date
(12 months) US$000 |
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1.
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Cash flows from operating activities
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-
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-
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1.1
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Receipts from customers
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1.2
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Payments for
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(632)
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(3,798)
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(a)exploration & evaluation
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(b)development
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-
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-
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(c)production
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-
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-
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(d)staff costs
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(353)
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(1,956)
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(e)administration and corporate
costs
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(160)
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(1,026)
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1.3
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Dividends received (see note 3)
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-
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-
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1.4
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Interest received
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35
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221
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1.5
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Interest and other costs of finance paid
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(42)
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(68)
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1.6
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Income taxes paid
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-
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-
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1.7
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Government grants and tax incentives
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-
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-
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1.8
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Other (provide details if material):
(a) business development
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(214)
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(932)
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1.9
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Net cash from / (used in) operating activities
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(1,366)
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(7,559)
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2.
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Cash flows from investing activities
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-
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-
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2.1
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Payments to acquire:
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(a)entities
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(b)tenements
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-
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-
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(c)property, plant and equipment
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-
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(13)
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(d)exploration & evaluation
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(731)
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(3,708)
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(e)investments
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-
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-
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(f)other non-current assets
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-
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-
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Consolidated statement of cash flows
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Current quarter
US$000 |
Year to date
(12 months) US$000 |
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2.2
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Proceeds from the disposal of:
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-
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-
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(a)entities
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(b)tenements
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-
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-
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(c)property, plant and equipment
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-
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-
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(d)investments
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-
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-
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(e)other non-current assets
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-
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-
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2.3
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Cash flows from loans to other entities
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-
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-
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2.4
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Dividends received (see note 3)
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-
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-
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2.5
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Other (provide details if material)
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-
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-
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2.6
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Net cash from / (used in) investing activities
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(731)
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(3,721)
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3.
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Cash flows from financing activities
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13,010
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27,700
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3.1
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Proceeds from issues of equity securities (excluding convertible debt securities)
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3.2
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Proceeds from issue of convertible debt securities
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-
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-
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3.3
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Proceeds from exercise of options
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-
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-
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3.4
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Transaction costs related to issues of equity securities or convertible debt securities
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(1,078)
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(1,832)
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3.5
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Proceeds from borrowings
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-
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-
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3.6
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Repayment of borrowings
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-
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-
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3.7
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Transaction costs related to loans and borrowings
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-
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-
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3.8
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Dividends paid
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-
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-
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3.9
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Other (provide details if material)
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-
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-
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3.10
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Net cash from / (used in) financing activities
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11,932
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25,868
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4.
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Net increase / (decrease) in cash and cash equivalents for the period
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4.1
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Cash and cash equivalents at beginning of period
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8,952
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4,432
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4.2
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Net cash from / (used in) operating activities (item 1.9 above)
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(1,366)
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(7,559)
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4.3
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Net cash from / (used in) investing activities (item 2.6 above)
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(731)
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(3,721)
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4.4
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Net cash from / (used in) financing activities (item 3.10 above)
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11,932
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25,868
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Consolidated statement of cash flows
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Current quarter
US$000 |
Year to date
(12 months) US$000 |
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4.5
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Effect of movement in exchange rates on cash held
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100
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(133)
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4.6
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Cash and cash equivalents at end of period
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18,887
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18,887
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5.
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Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts |
Current quarter
US$000 |
Previous quarter
US$000 |
5.1
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Bank balances
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14,337
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2,117
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5.2
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Call deposits
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4,550
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6,835
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5.3
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Bank overdrafts
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-
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-
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5.4
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Other (provide details)
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-
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-
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5.5
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Cash and cash equivalents at end of quarter (should equal item 4.6 above)
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18,887
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8,952
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6.
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Payments to related parties of the entity and their associates
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Current quarter
US$000 |
6.1
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Aggregate amount of payments to related parties and their associates included in item 1
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(170)
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6.2
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Aggregate amount of payments to related parties and their associates included in item 2
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-
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Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such
payments
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7.
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Financing facilities
Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.
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Total facility amount at quarter end
US$000 |
Amount drawn at quarter end
US$000 |
7.1
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Loan facilities
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-
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-
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7.2
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Credit standby arrangements
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-
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-
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7.3
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Other (please specify)
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-
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-
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7.4
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Total financing facilities
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-
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-
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7.5
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Unused financing facilities available at quarter end
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||
7.6
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Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or
unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
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Not applicable
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8.
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Estimated cash available for future operating activities
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US$000
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8.1
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Net cash from / (used in) operating activities (item 1.9)
|
(1,366)
|
8.2
|
(Payments for exploration & evaluation classified as investment
activities) (item 2.1(d))
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(731)
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8.3
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Total relevant outgoings (item 8.1 + item 8.2)
|
(2,097)
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8.4
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Cash and cash equivalents at quarter end (item 4.6)
|
18,887
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8.5
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Unused finance facilities available at quarter end (item 7.5)
|
-
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8.6
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Total available funding (item 8.4 + item 8.5)
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18,887
|
8.7
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Estimated quarters of funding available (item 8.6 divided by item 8.3)
|
9
|
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
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8.8
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8.8.1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
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Not applicable
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8.8.2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does
it believe that they will be successful?
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Not applicable
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8.8.3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
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8.8.1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
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Not applicable
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Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3
above must be answered.
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1 |
This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
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2 |
This statement gives a true and fair view of the matters disclosed.
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1. |
This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how
they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
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2. |
If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
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3. |
Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the
entity.
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4. |
If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to
the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
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5. |
If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX
Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its
CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and
that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
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