Guess which ASX lithium stock just rocketed 14% on record quarterly production

This ASX lithium miner has released its third-quarter results.

| More on:
View of a mine site.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX lithium stock Piedmont Lithium Inc (ASX: PLL) shot 13.9% higher to 20.5 cents per share at the market open on Tuesday following the release of the company's 3Q FY24 results.

The Piedmont share price is currently trading at 20 cents per share, up 11.1%.

Let's check out the report.

ASX lithium stock rips 14% on record production news

Piedmont is a part owner of the North American Lithium (NAL) project, which is North America's largest producing spodumene mine. It is located in the Carolina Tin Spodumene Belt of North Carolina.

Piedmont owns 25% of NAL, while its partner, Sayona Mining Limited (ASX: SYA), owns 75%.

According to the report, the NAL produced a record 52,141 dmt of spodumene lithium concentrate in 3Q FY24, a 5% increase from the previous quarter.

In total, 48,992 dmt of lithium concentrate was shipped. Approximately 31,500 dmt of that was sold to Piedmont and shipped to its customers. The average grade was about 5.4% Li2O.

What else happened during the quarter?

Mill utilisation rose to a record high of 91% for the quarter, largely due to the availability of the recently completed crushed ore dome. The lithium recovery rate was 67%.

The company said the increased utilisation rate resulted in a 15% quarter-over-quarter reduction in unit operating costs (when excluding the impact of inventory movements).

Piedmont is targeting shipments of approximately 55,000 dmt of spodumene concentrate in the next quarter and total shipments of approximately 116,000 dmt for 2024.

Its previous annual guidance was 126,000 dmt. However, the company explained that it has rescheduled a planned cargo for Q4 FY24 to early Q1 FY25 following a customer's request.

Piedmont said:

While this single cargo push into early 2025 will cause a nominal adjustment from our prior guidance of 126,000 dmt for 2024, we expect this shift to be accretive to our 2025 shipments totals and does not impact Piedmont's total offtake quantities at NAL.

The company released a graph showing how production has changed since 1Q FY23.

What did management say?

Keith Phillips, President and CEO of Piedmont Lithium, said:

Operational performance continues to improve on a quarterly basis and Sayona's recent announcement of the increase to the Mineral Resource Estimate lays the foundation for a potential growth at NAL in the future.

What's next?

Piedmont hopes to become one of North America's largest lithium hydroxide producers for electric vehicle manufacturing by processing spodumene concentrate mined at its assets around the world.

The company's other assets include a mine in Quebec owned in partnership with Sayona and a mine in Ghana owned in partnership with Atlantic Lithium Ltd (ASX: A11).

ASX lithium stock price snapshot

Piedmont Lithium shares are down by 51% in the year to date and down 55% over the past 12 months.

Piedmont's partner in the NAL project, Sayona Mining, is also having a rough year in terms of share price.

Sayona Mining shares are down 50% in the year to date and down 56% over the past 12 months.

This compares to an 8% rise in the S&P/ASX All Ordinaries Index (ASX: XAO) in the year to date and a 22% increase over the past 12 months.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 9 January 2025

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Why this $10 billion ASX lithium stock is surging 8% today

This lithium miner is making its shareholders smile on Thursday. But why?

Read more »

Five happy miners standing next to each other representing ASX coal mining shares which some brokers say could pay big dividends this year
Materials Shares

ASX lithium shares: Best 5 of a weak bunch in 2024

Only one All Ords lithium stock really impressed investors last year with a near 90% share price gain.

Read more »

Three miners looking at a tablet.
Materials Shares

Why did the BHP share price crash 21% in 2024?

This mining giant had a disappointing year. Will things be better in 2025?

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Materials Shares

Why did the Pilbara Minerals share price crash 45% in 2024?

Why were investors selling off this lithium giant this year? Let's dig deeper into things.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

How much could $5,000 invested in BHP shares be worth in a year?

Here's what one leading broker believes could happen with this miner's shares next year.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Bell Potter says this ASX lithium stock could rocket 90%+ in 2025

Let's see why the broker is bullish on this lithium developer.

Read more »

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Materials Shares

Forget Fortescue shares and buy this ASX iron ore stock

Bell Potter thinks this iron ore miner could deliver big returns over the next 12 months.

Read more »

Miner looking at a tablet.
Materials Shares

Are ASX lithium shares prime real estate for value hunters?

Can these stocks recharge returns for investors?

Read more »