Piedmont Lithium Ltd [ASX:PLL] Shares rose on Friday as the lithium developer closed its public tender offer.
Shares of PLL rose 9.5% late in the afternoon, extending its recent price rally.
Over the past month, PLL stock has gained almost 50%.
Piedmont isn’t the only ASX lithium stock to rise lately, although it East underperforming peers like Lake NL Resources [ASX:LKE] over the past 12 months.
LKE hit an all-time high this week up 85% and over 500% last year.
Piedmont, meanwhile – hit by some concerns over permits and disgruntled locals – is relatively flat this year, up just 5% in the past 12 months.
Lake Resources’ big gains beg the question: How long can this ASX lithium boom last?
PLL’s public offering
Today, Piedmont announced the closing of its public offering of common stock.
2.01 million PLL shares were offered, including the full exercise of the underwriters’ option to purchase 262,500 shares.
Gross proceeds totaled $130.8 million, which will be essential to fund PLL’s ongoing lithium projects.
Specifically, Piedmont intends to use the funds to restart North American Lithium’s operations in Quebec.
The lithium developer also wants to use the capital to fund exploration and feasibility studies in Ghana and advance the lucrative lithium hydroxide plant in the United States.
Outlook for PLL shares
Lithium developers are capital intensive.
There’s no income, but you still have to spend money on labor, exploration, and equipment.
Securing funds – via favorable debt facilities or fundraising – is crucial for companies like Piedmont.
Especially when the lithium sector is so hot right now that companies can raise money at high prices, minimizing dilution.
You can’t say the same for ASX BNPL stocks, whose depressed stocks will make it harder for BNPL companies to raise much-needed funds.
Now, we’ve all heard that the age of electric vehicles is approaching.
But Piedmont is not the only lithium stock aiming to herald the era of electric vehicles.
There are many other competitors in the lithium business.
Our experts recently identified three overlooked lithium stocks that have likely flown under many people’s radar.
You can get acquainted with these in “Three Overlooked ASX Lithium Stocks That Could Soon Soar On The Fast-Growing Electric Vehicle Revolution” – a free report that could shed some light on your future in lithium stock trading.