Analyst Downgrades Piedmont Lithium; ATI Names New CEO; SunCoke CEO Retires; Olympic Steel Releases Q4, Annual Results: Friday’s Top Mining Stories

Top Stories for Feb. 23, 2024:

1. BTIG analyst Gregory Lewis downgraded Piedmont Lithium PLL from Buy to Neutral following its fourth-quarter and full-year 2023 financial results.

Piedmont Lithium’s 2023 results included $39.8 million in revenue from 43.2k dry metric tons of spodumene concentrate sales, $5.7 million gross profit and a ramp-up at NAL with cost and production improvements anticipated in 2024.

Shipments are expected to transition to multi-year contracts and it is advancing permits in Ghana and North Carolina.

Piedmont ended 2023 with $71.7 million cash and $49.1 million from Q1 2024 share sales of Sayona Mining SYA.

2. The Board of Directors of ATI Inc. ATI elected Chief Operating Officer Kimberly A. Fields as President and CEO, effective July 1, 2024.

Former CEO Robert S. Wetherbee commented, “ATI is well-positioned, on a clear path to $5 billion in revenue and $1 billion in EBITDA by 2027. We have the capabilities, and the team is aligned to deliver…. Kim is ready to lead this organization. Her demonstrated operational and commercial success makes her proven to perform. As ATI’s next CEO, Kim will further accelerate our growth and value creation.”

3. SunCoke Energy, Inc. SXC announced the upcoming retirement of CEO Michael G. Rippey on May 15, 2024.

Katherine T. Gates will replace him as CEO, while retaining her role as president and continuing as a Board member. Post-retirement, Rippey will serve as an advisor to the company.

4. Olympic Steel ZEUS announced fourth-quarter and full-year 2023 financial results.

The company’s Pipe and Tube segment reported its second most profitable year and it increased its quarterly dividend by 20% from $0.125 to $0.15 per share.

Fourth-quarter net income was $7.4 million ($0.64 per share) with $16.7 million adjusted EBITDA and $489 million in sales.

Full-year net income stood at $44.5 million ($3.85 per share), with $97.6 million adjusted EBITDA and $2.2 billion in sales, including $8.3 million LIFO pre-tax income and $5.7 million in acquisition charges. This compares to the previous year’s $90.9 million net income, $152 million adjusted EBITDA and $2.6 billion in sales.

Chief Executive Officer Richard T. Marabito commented, “For the second year in a row, we withstood a hot-rolled carbon steel index pricing decline of more than 45% during the year…. Our Pipe and Tube business delivered its second most profitable year ever, and our Carbon business showed its resiliency in navigating the pricing pressures of 2023. While Specialty Metals faced industry-wide stainless steel pricing headwinds, this segment contributed consistent positive EBITDA for both the fourth quarter and the full year.”

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