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Piedmont Lithium (ASX:PLL) is a lithium company having interest in 100% owned Piedmont Lithium Project in North Carolina. The current focus of the company is on this project with the goal of becoming a leading local supplier of lithium to cater to the growing battery storage and electric vehicle markets in the US.
On 6th March 2019, the company has released an update regarding its SGS Canadaâs facilities. The next phase of PFS-level metallurgical testwork program has already been commenced at SGS Canadaâs facilities in Lakefield, Ontario. Prior to this phase of metallurgical testwork, the Companyâs Phase 2 and Phase 3 drill campaigns produced variability and composite samples from drill cores which will be used to complete the metallurgical testwork.
In 2018, the companyâs bench-scale testwork demonstrated spodumene concentrate grades of 6.0-6.5% Li2O with a low iron content of 0.66-0.76% Fe2O3, which has formed the foundational success on which the current testwork has commenced.
New metallurgical tests will incorporate assessment of Dense Medium Separation (DMS) technologyâs potential as a pre-concentration step to the production of superior quality spodumene concentrate. Locked cycle flotation tests will likewise be performed on composite and variable samples to confirm earlier testwork and estimate spodumene recoveries.
The results of the testwork program will be used to additionally upgrade the procedure of flow diagram amid the following periods of technical study of the Company's planned spodumene concentrator. Test outcomes will likewise be used to structure a pilot testwork program which is planned for the second half of 2019. Additional by-product result testing is planned in the second half of 2019.
The projectâs team of engineers and consultants has also been announced by the company that will be supporting the Company in areas of mining engineering, exploration, land acquisition etc. as the team focuses on a construction decision by the end of 2019. Some of the appointments of consultants and suppliers are; Primer Group has been assigned the task of engineering services and overall study management, SGS Canada will be doing the environmental testwork, Deep Earth Logic would be conducting the pre-blast studies, CSA Global would be providing the resource geology and data management services.
On 28th February 2019, the company presented a detailed presentation regarding its Lithium project in the USA. It demonstrated the efficient economics of the project by stating net present value (NPV) of US$888 million on 13-year initial mine life with steady-state EBITDA of US$235 million. The internal rate of return (IRR) was also reported at 46% (after tax) with two years payback. These numbers have projected the Piedmont Lithium as number one on the profitability index in the comparison of 13 companies having their operations in the region of USA and Canada. One of the lithium demand fundamentals stated by the company was the reduction in the Lithium-ion battery prices on the basis of volume weighted average which led prices from US$1,160 per kwh in 2010 to US$176 per kwh in 2018.
On 23rd January 2019, the company released a statement regarding its Phase four drill program at Piedmont Lithium project.
As of 6th March 2019, the stock was trading 4.76% down at A$0.100 compared to the previous closing of A$0.105. The YTD return of the stock is 14.13%.
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