The Piedmont Lithium share price is sliding, down 7% in late morning trade. We take a look at the ASX lithium share’s latest report.
The post Why the Piedmont Lithium (ASX:PLL) share price is sliding 7% today appeared first on The Motley Fool Australia. –
The Piedmont Lithium Ltd (ASX: PLL) share price is sliding, down 6.6% in late morning trade.
It’s the first day of losses in some time for Piedmont Lithium’s shareholders, with the ASX lithium share posting gains for the past 6 consecutive days.
Below we take a look at the company’s latest activity report for the quarter ending 31 March.
What did Piedmont Lithium report?
The Piedmont Lithium share price is falling despite the company reporting positive results over the quarter.
Those include a 40% increase in the ASX lithium miner’s total Mineral Resources at its Piedmont Lithium Carolinas project in the United States. Total Mineral Resources at the project were upgraded to 39.2 million tonnes (at a grade of 1.09% LI2-O). 55% of that is classified in the Indicated category.
Piedmont underwent a significant expansion of its senior management team over the quarter. Among those, David Klanecky was appointed Executive Vice President and Chief Operating Officer. Klanecky has extensive experience in hard rock lithium mining and chemical processing activities.
The company completed a US$122.5 million (AU$159.1 million) capital raising on 24 March via a US public offering.
And it entered into agreements to acquire 19.9% of Sayona Mining Ltd (ASX: SYA) along with a 25.0% interest in its subsidiary, Sayona Quebec. Sayona Quebec owns a number of “highly prospective” lithium projects in North America.
The company also opted (following its shareholders’ approval) to move its primary listing to the Nasdaq, while maintaining its ASX listing via Chess Depositary Interests (CDIs).
Commenting on the past quarter, Piedmont’s CEO said:
This was an eventful quarter, as we positioned Piedmont to be the United States’ first greenfield lithium project in over 50 years… Piedmont is at the nexus of two important megatrends – the electrification and decarbonisation of the economy, and the regionalisation of supply chains.
Piedmont Lithium share price snapshot
Despite sliding today, the Piedmont Lithium share price remains up an eye-popping 820% over the past 12 months. That blows the doors off the 30% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Piedmont Lithium share price has continued to shoot for the stars, up 147% so far in 2021.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.