Piedmont Share Price: Investing in Growth (ASX:PLL)

The Piedmont Lithium Inc [ASX:PLL] is making moves with a recent acquisition of NAL and investment in IronRidge.

Two days after announcing the acquisition of North American Lithium (NAL), Piedmont Lithium today announced the completion of an initial investment in IronRidge Resources Ltd [ASX:IRR].

Piedmont Lithium Inc [ASX:PLL] share price is currently exchanging hands for 78.5 cents a share, a slight drop of 1.9% for the day.

ASX PLL - Piedmont Share PriceSource: Tradingview.com

 Zooming out, and we see in PLL’s share price appreciation the recent boom in ASX lithium stocks.

Over the last 12 months, PLL shares gained 800%.

Let’s dive deeper into Piedmont’s recent announcements.

Piedmont invests in IronRidge

PLL today revealed it completed a 9.9% investment in IronRidge Resources (IRR).  

This was followed by a satisfaction of conditions pursuant to a subscription agreement between the pair announced on 1 July 2021.

Piedmont previously entered into a Project Agreement with IRR, aiming to acquire up to 50% of IRR’s lithium portfolio based in Ghana via staged investments spread over 3–4 years.

The staged investments will support exploration, a definitive feasibility study, and the initial capital cost for IRR’s Ewoyaa Project.

 The Ewoyaa Project will be beneficial for both PLL and IRR as it has an estimated initial Mineral Resource estimate of 14.5Mt at 1.31% Li2O.

In June 2021, the Ghanaian Spodumene Concentrate (SC6) supply agreement was also signed between PLL and IRR, which gave Piedmont rights to purchase 50% of Ewoyaa Project’s production at market pricing terms for life-of-mine.  

 For reference, a scoping study announced by IRR in January 2021 highlighted a business case for 295,000 tons per year of SC6 production from the Ewoyaa Project.

 SC6 production is expected to support Piedmont’s lithium hydroxide production plans in North America.

Piedmont said offtake rights from Ewoyaa could support a phased expansion of its Carolina Lithium Project in North Carolina or offer an option for lithium hydroxide production in Quebec.

Today’s announcement also comes two days after PLL completed the acquisition of NAL.

Piedmont acquires NAL

 Piedmont announced on 30 August that it and Sayona Mining Ltd’s [ASX:SYA] subsidiary completed the acquisition of North American Lithium (NAL).

This was in accordance with a purchase agreement first flagged on 30 June 2021.

The NAL acquisition creates a potential lithium production hub in the Abitibi region of Quebec.

SYA’s subsidiary is Sayona Quebec and is 25% owned by Piedmont and 75% by Sayona.

PLL and SYA are now focusing on advancing technical studies for the future of NAL’s spodumene concentrate operations.

The Scoping Study is expected in H2 2021.

Apart from this, studies have commenced for the manufacturing of Lithium Chemicals in the province of Quebec.

Given the abundant mineral resources backed by low-cost and sustainable hydro-electric power, these manufacturing activities can help the province position itself to become an important Lithium Hydroxide production centre.

What’s next for PLL share price?

 The acquisition of NAL backed by the initial investment in IronRidge has set Piedmont on the right track to compete in the growing lithium sector.

It is not a secret there is a shift from internal combustion engine vehicles to EVs.

Big change is happening in the world. What used to be whispers of futuristic predictions are now realities.

And what we’re seeing now with Piedmont is a company investing in growing its business at a time when demand for lithium is only set to soar.

But Piedmont is not the only lithium stock out there benefiting from positive sentiment.

Our market experts at Money Morning have found three compelling lithium stocks on the ASX right now that could be set to rise.

We’ve profiled them in a free report, which you can download and read today.

You can read ‘Three Lithium ‘Bounce Back’ Stocks for 2021’ here.

It’s a good read for investors looking to piggyback on what could potentially be a strong run for lithium stocks in the coming years.

 Regards,

Kiryll Prakapenka,

For Money Morning

PS: In this new report, Money Morning’s Ryan Dinse reveals why he is convinced that lithium is going to rebound in 2021. Get the FREE Report


Kiryll Prakapenka is an investing autodidact who is passionate about conducting in-depth research on investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from The University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding of the fundamentals behind companies.


Money Morning Australia