PLL Closes Merger Deal With Sayona to Form Leading Lithium Producer

Piedmont Lithium Inc. PLL announced that it completed its previously stated merger with Sayona Mining Limited to form a combined company named Elevra Lithium. This merger is expected to boost Piedmont Lithium’s footprint and operational efficiency. This positions the combined company as a leading supplier of lithium resources for the expanding electric vehicle and stationary energy storage markets.

Details on Piedmont Lithium’s Deal With Sayona

PLL and Sayona entered an all-stock merger agreement to form a unified company on Nov. 19, 2024. 

The deal combines Piedmont Lithium and Sayona’s complementary businesses, creating one of the largest hard-rock lithium platforms. The combined company will have three high-quality development projects and the potential for brownfield expansion at North American Lithium (“NAL”).

NAL is North America’s largest lithium operation and one of the world’s few active hard rock spodumene operations supplying the market. NAL finished ramping up in June 2024 and is targeting 226,000 metric tons a year of spodumene concentrate production.

The Piedmont Lithium-Sayona merger will create a simpler and stronger lithium business, positioning it well to grow through cycles. It will have low capital intensity, with a reduced cost base. Shared benefits of synergies, in the form of optimized logistics and procurement, will help lower operating costs. Marketing synergies are expected through expanded customer relationships.

The merger deal was approved by the shareholders of both companies.

Elevra is well-positioned to supply the growing demand from the global energy transition as it is an established provider of essential lithium resources with a global portfolio of development projects.

PLL Stock’s Price Performance

PLL shares have lost 12% in the past year against the industry’s 15.5% growth.

Piedmont Lithium’s Zacks Rank & Other Stocks to Consider

The company currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the basic materials space are Agnico Eagle Mines AEM, Idaho Strategic Resources IDR and Carpenter Technology Corporation CRS. AEM sports a Zacks Rank #1 (Strong Buy), and IDR and CRS carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $6.94 per share. The estimate indicates a year-over-year surge of 64.1%. It has an average trailing four-quarter earnings surprise of 10%. Agnico Eagle Mines’ shares have soared 79.1% in a year.

Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 2.6%. The Zacks Consensus Estimate for its 2025 earnings is pegged at 76 cents per share, indicating year-over-year growth of 13.4%. IDR shares skyrocketed 110% last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $9.36 per share. Its shares surged 68% last year.

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This article originally published on Zacks Investment Research (zacks.com).

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