Belmont-based Piedmont Lithium has more than halved the number of its employees this year to cut costs. The company completed a 32% reduction in workers in October, and earlier reported it had decreased its workforce by 27% in February.
“As part of our 2024 Cost Savings Plan, we reduced our total workforce by 48% between February 2024 and October 2024. We expect to recognize $14 million in annual cost savings in 2024,” Piedmont Lithium reported in a Form 8-K filed with the SEC on Tuesday. Piedmont Lithium reported it had 63 employees as of Dec. 31, 2023, all in the U.S. except for two people in Canada, according to its annual report.
But the reduction in workforce goes deeper than 48%. Piedmont Lithium’s workforce is now down into the “mid 20s,” according to information provided by the company Nov. 13.
Piedmont Lithium reported a quarterly loss of 86 cents per share versus the Zacks Consensus Estimate of a loss of 46 cents. This compares to earnings of 88 cents a year ago. These figures are adjusted for non-recurring items.
Piedmont Lithium posted revenues of $27.7 million for the third quarter ended Sept. 30, compared to $47.1 million for the year before. The company said it had $64.4 million in cash as of Sept. 30, compared with $94.5 million a year earlier. Piedmont entered into a non-dilutive $25 million working capital facility with a trading company partner, according to the report.
Piedmont Lithium’s proposed mining project in Gaston County, called Carolina Lithium, remains the focus of its U.S. development strategy. The company received a state mining permit in the second quarter and continues to pursue a state air quality permit. It would also need a zoning change from Gaston County commissioners before it could begin operations in the northwest part of the county. The site is about 30 miles west of Charlotte.
The company expects to receive credits from the Inflation Reduction Act, passed by the Biden administration.
Piedmont Lithium shares have traded between $6.57 and $31.82 in the past year. Shares are down more than 50% this year, closing Tuesday at $12.95, up 80 cents or 6.63%.