Piedmont Lithium Ltd (ASX: PLL) which is into the metal and mining sector and 100% owner of Piedmont Lithium Project in North Carolina made an announcement on 6 December 2018, about the expansion of land position by 15% at Piedmont Lithium Project which is now a total land of 1,383 acres. It is a step towards meeting the goal of the company to become a strategic lithium supplier to the markets catering to electric vehicle and battery storage market.
There was an expansion in the core project of the company by 18% which makes the total land of 622 acres. The current land acquisition is touching the existing mineral resource. Now, the company is going to finalize the drilling target and is expected to incorporate in the upcoming phase 4 of the drilling program — all the deals which are being structured in the form of options and deferred purchases. This will enable them to minimize the direct cash expenditure.
The company has given an exceptionally good performance since its inception. The performance since its inception is 263.64%. The performance of the company in 5 years and ten years remain positive. In 10 years, the performance of the company was 328.57%. For the past five years, the performance of the company is 300%. However, since last year, the performance of the company is -29.41%.
For the period ended 30 June 2018, the company incurred a net loss of US$9,957,817. The company holds a total asset of US$8,056,598 and total liabilities of US$1,989,084 which implies that the company is in a position to clear its long-term obligations. The company holds total current assets worth US$7,310,599 and total current liabilities of US$1,989,084 which highlights that the company is in a good position to meet its short-term obligations as well as the net working capital. On the other hand, there is an increase in the accumulated loss in FY2018 which indicates that the shareholder’s wealth is being eroded. The total shareholder’s equity is US$6,067,514.
There is a net cash outflow from the operating activities of the company worth US$7,581,996. Here, the main source of cash outflow is due to the payment made to the suppliers and the employees.
There was a outflow from the investing activities of the company worth US$602,180. Here, the main source of cash outflow was due to the purchase of assets which was required for exploration and evaluation. The company also purchased property, plant, and equipment and made payment for deposits.
There was a net cash inflow from the financing activities of the company worth US$11,833,809. Here, the main source of cash inflow was the income which was generated by the issue of shares. Simultaneously there was a cash outflow in the form of share issue cost.
Further, as a result of net foreign exchange difference, there was a cash inflow. By the end of the year, the cash and cash equivalent available with the company was US$7,238,489.
As of today, the share traded flat on ASX as it maintained a constant open price, day’s high price, and day’s low price. At present, the market price of the share is A$0.120 (AEST: 4:00 pm, 6 December 2018) with the stock holding a market capitalization of A$67.11 million.
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