E37: Carolina Spodumene Rocks! Piedmont Lithium's Keith PhiLLips

Piedmont's market cap has grown 100X from $10M to $1B+ in 4 years as it has progressed early stage exploration with 19 drill holes on 500 acres in North Carolina to an expected definitive feasibility study this September & potential start of construction in early 2022. Piedmont CEO Keith Phillips discusses PLL's robust updated economic study, improved sustainability profile and near term strategic objectives both on financing the Piedmont Lithium Project in North Carolina and Piedmont's own consolidation/M&A endeavors in Quebec and possibly elsewhere. Time Index 0-2:00 - Intro - new scoping study reflects a near doubling of NPV to $1.9B, steady state EBITDA growing from $230M to $400M, 31% after-tax IRR and 3 year payback period. 2:00-6 - Sustainable Lithium Hydroxide Business - Independent LCA analysis by Minviro - the preliminary analysis shows 3 key metrics - water use/land footprint and carbon intensity - Piedmont is a stand out in all 3. What drives the numbers on all three? How is it possible for Piedmont's carbon intensity to be only a quarter of China? 6:15-8:15 - Innovative Hydroxide Technology Piedmont is using a “sulphate free” Metso Outotec process. What are the benefits of this over sulfuric acid roasting process currently used in China and planned for Australia hydroxide projects? 8:30-15:15 - Hydroxide vs. Carbonate, Price Premium - Why is Piedmont focused on lithium hydroxide rather than carbonate?- In a world of $100/t a ton carbon taxes we believe the 15t of CO2 per tonne of hydroxide difference with China will mean a $1,500/t premium for Piedmont - do you agree?- Will we see an even higher price premium in the USA given transport/logistics benefits such as lower inventory needs given close proximity and no risk of import duties? 15:15 - 23:45 - Bigger Production/Stronger Economics/Lowest Cost Global Hydroxide Producer - The scoping study outlines a near 50% increase in planned production - 30ktpa - presume this is on the back of the increased resource size?- Considering Carolina head grade of about 1.1% vs. the world’s best hard rock deposit Greenbushes at 2%, how is it that Piedmont can be the lowest cost producer of hydroxide? 24:00 - 33:00 - Strategic Dialogues/Process - The 2021 study has higher price assumptions for SC6 and LiOH that are similar to current spot prices - are you seeing increased interest in off-take at pricing around the studies assumptions?- The Capex for the project has grown to ~$800M. What is the timeline for completion of DFS, full financing, financial investment decision, construction start? 33:00 - 38:00 - Piedmont as M&A Consolidator - Any update on Sayona/North American Lithium?- Do you see scope for further consolidation of hard rock projects and do you have any plans for additional project investments?- You have recently appointed Tier One global investment banks JP Morgan and Evercore. What is their mandate? 38:00 - 42:00 - EV, Battery, SPACs, Build Back Better Biden - How is both public capital markets and government initiatives impacting overall sentiment toward Piedmont in terms of raising funding?- Might USA and/or Canadian government support be relevant in Piedmont/Sayona financing plans? NOT INVESTMENT ADVICE. DO YOUR OWN RESEARCH-----Intro and outro audio credit: Jamie Klein