Piedmont’s DFS for Tennessee delivers a solid US$2.5bn NPV
Nick Sundich, April 21, 2023
Piedmont Lithium’s DFS for its Tennessee Lithium project was unveiled to investors this morning. Piedmont (ASX:PLL), which is one of the few ASX lithium stocks to have a supply contract with Tesla, delivered an NPV of US$2.5bn and a post-tax IRR of 32%.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Piedmont’s DFS delivers the goods
The Tennessee Lithium project consists of a lithium deposit and a lithium hydroxide plant that will deliver 30,000 metric tonnes per year. It anticipates an annual steady state after-tax cash flow of US$317m and a payback of less than three years. However, it won’t come cheap – it will require an initial capital cost of US$809m.
Piedmont told shareholders it anticipates commencing construction in 2024.
Tennessee just one of three projects
Piedmont’s portfolio also includes the Quebec project (owned and operated in a JV with ASX peer Sayona Mining (ASX:SYA) as well as the Ewoyaa Lithium Project in Ghana – indirectly owned through a stake in Atlantic Lithium (ASX:A11).
A DFS for the latter is anticipated in mid-2023. This will be important not just for that project, but for Tennessee too because lithium from Ewoyaa will become the primary feedstock for Tennessee. A PFS was unveiled last September, outlining a 2Mtpa (million tonnes per annum) operation over 12.5 years with an initial capital investment of US$125m. At a grade of 6% lithium, this would equate to 255,000 tpa.
Piedmont (ASX:PLL) share price chart, log scale (Source: TradingView)
A ride for shareholders
Piedmont shares were down 6% on Friday and are down 20% in 12 months. But they’re up nearly 400% in 5 years. Lithium prices have corrected in the past 12 months and this has flowed through to the company’s share price. But the long-term fundamentals for lithium remain solid.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Telix Pharmaceuticals (ASX:TLX): It’s made ~A$1.7bn in revenue from Illucix, but here’s why the best is yet to come!
What would you have thought if you were told 5 years ago you would see Telix Pharmaceuticals as a successful…
Anti Woke ETFs: Do they practice what they preach and have they outperformed since Trump’s return to power?
Have you ever heard of so-called ‘Anti Woke ETFs’? If you’re sick of companies that are big on ESG, this…
Trump’s Tariffs Are Back in the News—What’s the Impact on Global Supply Chains?
In recent months, the conversation around trade tariffs has re-emerged, with former President Donald Trump’s trade policies making headlines once…