Piedmont Lithium Stock Tumbles Due to Decrease in Lithium Prices

Shares Plummet

Shares of Piedmont Lithium took a hit on Friday following the release of the company's fourth-quarter results, which were negatively impacted by a significant decrease in lithium prices. The stock experienced an 11% decline, dropping to $12.30 during midday trading - marking its lowest point since late 2020. Overall, shares are down approximately 57% since the beginning of the year.

Financial Performance

Belmont, N.C.-based Piedmont reported a concerning negative revenue of $7.3 million for the fourth quarter, a stark contrast to the positive $47.1 million in revenue achieved in the previous fiscal quarter. Analysts surveyed by FactSet had anticipated fourth-quarter revenue to be positive $26.6 million. Additionally, the company reported a loss of $25.4 million, or $1.32 per share, for the quarter ended on December 31st. This was higher than the year-ago loss of $10.9 million, or 61 cents per share.

Strategic Shift

Piedmont's Chief Executive, Keith Phillips, disclosed that the company intends to adjust its offtake volumes by focusing on securing longer customer contracts. This strategic move is aimed at mitigating the impact of price volatility in the future.

Price Decline

The company witnessed a drastic decline in its realized price on lithium sales, dropping to negative $513 per dry metric ton from $1,624 per dry metric ton in the third quarter.