Sayona Mining Announces Increase to Mineral Resource Estimate for North American Lithium

Rhea-AI Summary

Piedmont Lithium (Nasdaq: PLL; ASX: PLL), a leading North American supplier of lithium products for the U.S. electric vehicle supply chain, has announced an update to the mineral resource estimate for North American Lithium (NAL). This update was reported by Sayona Mining (ASX: SYA), which jointly owns NAL with Piedmont in a 75%-25% split.

The mineral resource update, prepared in accordance with the JORC Code (2012), signifies a potential increase in the lithium resources at NAL. However, Piedmont cautions that Sayona's statements have not been independently verified, and Sayona is not subject to U.S. reporting requirements. Investors are advised to exercise caution when considering this information.

Positive

• Potential increase in lithium resources at North American Lithium
• Joint ownership of NAL with Sayona Mining provides strategic partnership

Negative

• Lack of independent verification of Sayona's mineral resource update
• Sayona not subject to U.S. reporting requirements, potentially limiting transparency

Insights

Mining Industry Analyst

The updated mineral resource estimate for North American Lithium (NAL) is a significant development for Piedmont Lithium and Sayona Mining. This increase in the resource estimate could potentially extend the mine's life and boost production capacity, which is important in the rapidly growing lithium market.

The timing of this announcement is particularly noteworthy, given the surging demand for lithium in electric vehicle batteries. With NAL being a key asset in Piedmont's portfolio, this resource upgrade could strengthen the company's position in the North American lithium supply chain.

However, investors should note that resource estimates don't always translate directly to economically viable reserves. The next critical step will be to assess how much of this increased resource can be converted into reserves and incorporated into the mine plan.

Financial Analyst

This resource upgrade could have positive implications for Piedmont Lithium's valuation. With a 25% stake in NAL, any increase in the project's value directly benefits Piedmont. However, the market's reaction may be tempered by the fact that Sayona, not Piedmont, prepared the resource estimate.

Investors should focus on how this news might impact Piedmont's future cash flows and earnings potential. An expanded resource base could lead to increased production and revenues in the long term, but it's important to consider factors such as capital expenditure requirements and operating costs associated with extracting the additional resources.

While this news is generally positive, prudent investors will wait for Piedmont's own assessment and any updates to their production forecasts or financial projections before making investment decisions.

Lithium Market Specialist

The expansion of NAL's mineral resource estimate comes at a critical time in the lithium market. With global demand for lithium expected to surge by over 40% annually until 2030, securing substantial resources is vital for lithium producers.

This upgrade potentially positions Piedmont and Sayona to capitalize on the growing market, particularly in North America where domestic supply is important for the EV industry. The resource increase could allow for scalable production to meet rising demand from automakers and battery manufacturers.

However, it's important to note that the lithium market is highly dynamic. While current projections show a supply deficit, new projects and technological advancements could alter the supply-demand balance. Investors should monitor how this resource upgrade translates into actual production capacity and Piedmont's ability to secure long-term supply agreements.

BELMONT, N.C.--(BUSINESS WIRE)-- Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL; ASX: PLL), a leading North American supplier of lithium products critical to the U.S. electric vehicle supply chain, today announced that Sayona Mining Limited (“Sayona”) (ASX: SYA) reported a mineral resource update for North American Lithium in accordance with the JORC Code (2012). NAL is jointly owned by Piedmont (25%) and Sayona (75%).

Sayona’s announcement can be found here.

The statements in the link above were prepared by, and made by, Sayona. The following disclosures are not statements of Piedmont and have not been independently verified by Piedmont. Sayona is not subject to U.S. reporting requirements or obligations, and investors are cautioned not to put undue reliance on these statements.

About Piedmont Lithium

Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Our goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where we hold an economic interest. Our projects include our Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic Lithium (AIM: ALL; ASX: A11). We believe these geographically diversified operations help us to play a pivotal role in supporting America’s move toward energy independence and the electrification of transportation and energy storage. For more information, follow us on Twitter @PiedmontLithium and visit www.piedmontlithium.com.

Cautionary Note to U.S. Investors

Piedmont’s public disclosures are governed by the U.S. Exchange Act of 1934, including Regulation S-K 1300 thereunder, whereas NAL discloses estimates of “measured,” “indicated,” and “inferred” mineral resources as such terms are used in the JORC Code and Canada’s National Instrument 43-101. Although S-K 1300, the JORC Code, and NI 43-101 have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, they at times embody different approaches or definitions. Consequently, investors are cautioned that public disclosures by NAL prepared in accordance with the JORC Code or NI 43-101 may not be comparable to similar information made public by companies, including Piedmont, subject to S-K 1300 and the other reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827298858/en/

Erin Sanders

SVP, Corporate Communications & Investor Relations

T: +1 704 575 2549

E: esanders@piedmontlithium.com

Source: Piedmont Lithium

FAQ

What is the significance of the mineral resource update for North American Lithium (NAL)?

The mineral resource update for NAL, reported by Sayona Mining, suggests an increase in lithium resources. This could potentially enhance the value and production capacity of the jointly-owned project, benefiting Piedmont Lithium's position in the lithium market.

How is ownership of North American Lithium (NAL) divided between Piedmont Lithium and Sayona Mining?

North American Lithium (NAL) is jointly owned by Piedmont Lithium (25%) and Sayona Mining (75%).

What cautions does Piedmont Lithium (PLL) provide regarding the mineral resource update?

Piedmont Lithium (PLL) cautions that Sayona's statements have not been independently verified by Piedmont. Additionally, Sayona is not subject to U.S. reporting requirements, and investors are advised to exercise caution when considering this information.

What standard was used for the mineral resource update at North American Lithium?

The mineral resource update for North American Lithium was prepared in accordance with the JORC Code (2012), which is an internationally recognized standard for reporting mineral resources and ore reserves.