Piedmont Lithium's Record Quarter For Production; Coal Prices Weigh On Rameco; Royal Gold Boosts Liquidity And More: Thursday's Top Mining Stories

Zinger Key Points
  • Piedmont Lithium reports record Q1 production, expecting increased shipments and reduced costs by year-end.
  • Ramaco Resources sees decreased Q1 earnings due to low coal prices and high costs, raises credit line and declares dividends.

Top Stories for May 9, 2024:

  1. Piedmont Lithium PLL reported Q1 results with a record production of 40,439 dry metric tons (dmt) at North American Lithium, which achieved record lithium recoveries of 69%. 

The company expects full run-rate production in the second half of the year and plans to ship about 126,000 dmt for the full year, primarily in the second half. 

Revenue reached $13.4 million from sales of 15,500 dmt of spodumene concentrate, with $71.4 million in cash on hand as of March 31, 2024. 

Piedmont anticipates shipment volumes to double and investment costs to halve in the second half of 2024.

A mining permit for Carolina Lithium was also issued in May 2024, boosting funding discussions. 

  1. Ramaco Resources METC reported first-quarter net income of $2 million and adjusted EBITDA of $24.2 million, both down significantly from the fourth quarter of 2023. 

Lower coal prices and higher mining costs due to challenging geology and labor issues impacted results. 

The company shipped most of its exports in March at low price points and increased its credit facility to $200 million with an option to expand to $275 million.

Rameco also declared quarterly dividends for Class A and B shares, payable in June 2024.

Also Read: De Grey Mining Plans To Raise $395M For Major Gold Project In Australia

  1. Royal Gold RGLD reported first-quarter net income of $47.2 million on $148.9 million in revenue, with operating cash flow at $138.3 million. 

The company had a solid quarter, paying down $100 million in debt, reducing total debt to $150 million and increasing liquidity to $966 million. 

Revenue was predominantly from gold (75%), followed by silver (13%) and copper (9%). The company sold 71,900 gold equivalent ounces and maintained a high adjusted EBITDA margin of 79%. 

The quarterly dividend was increased by 7% to 40 cents per share and, post-quarter, the company repaid an additional $75 million in debt, bringing total debt down to $75 million.

  1. Tredegar Corp TG reported first quarter net income of $3.3 million, up from a loss of $1 million in the first quarter of 2023. 

EBITDA for Aluminum Extrusions decreased to $12.5 million from $14.6 million year-over-year, while EBITDA for PE Films increased to $6.9 million from $1.8 million. 

Sales volume across sectors showed mixed results, with net new orders up 61% from the first quarter of 2023. 

The company is in the process of selling its flexible packaging films division, Terphane.

Now Read: Barrick Gold CEO Says Mergers Won’t Fix The Copper Shortage

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