Piedmont Lithium Inc. reported significant financial changes in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the third quarter dropping to $27.7 million from $47.1 million in the same period of 2023, marking a decrease of 41.3%. For the nine months, revenue increased to $54.3 million, up 15.2% from $47.1 million in the prior year, primarily driven by increased sales volume of spodumene concentrate.

Gross profit for the third quarter fell sharply to $2.7 million, down 88.8% from $23.8 million in 2023, resulting in a gross profit margin decline to 9.6% from 50.4%. The loss from operations for the third quarter was $(14.9) million, a stark contrast to an income of $16.0 million in the same quarter of the previous year. The net loss for the third quarter was $(16.7) million, compared to a net income of $22.9 million in 2023. For the nine-month period, the net loss was $(53.6) million, a significant increase from a net income of $3.6 million in the prior year.

The company implemented a 2024 Cost Savings Plan aimed at reducing annual operating expenses by $10 million, which included a 28% workforce reduction and decreased third-party spending. This plan was expanded due to ongoing challenges in the lithium market, resulting in an additional 32% workforce reduction in October 2024. Total workforce reductions from February to October 2024 reached 48%, with severance costs recorded at $2.6 million for the nine months ended September 30, 2024.

Piedmont's cash and cash equivalents decreased by $7.4 million to $64.4 million as of September 30, 2024. The company reported net cash used in operating activities of $(36.5) million for the nine months, a significant increase in cash outflows compared to $5.4 million provided in the same period of 2023. Cash provided by investing activities improved to $13.3 million, primarily due to net proceeds of $49.1 million from the sale of equity interests in Sayona Mining and Atlantic Lithium.

Strategically, Piedmont is focusing on its key projects, including the Carolina Lithium project and the Ewoyaa project in Ghana, with plans to streamline production and enhance operational efficiency. The company is also exploring future financing options through asset sales, equity offerings, and strategic partnerships to support its growth initiatives.