EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES

We apply the equity method to investments when we have the ability to exercise significant influence over the operational decision-making authority and financial policies of the investee. We account for our existing investments in Atlantic Lithium Limited (“Atlantic Lithium”), Sayona Mining Limited (“Sayona”), and Sayona Quebec Inc. (“Sayona Quebec”), a subsidiary of Sayona, as equity method investments. Our share of the income or loss from Atlantic Lithium, Sayona and Sayona Quebec is recorded on a one-quarter lag.

Sayona

We own an equity interest of approximately 16.4% in Sayona, an Australian company publicly listed on the ASX, forming a strategic partnership to explore, evaluate, mine, develop, and ultimately produce spodumene concentrate in Quebec, Canada.

Sayona Quebec

We own an equity interest of 25% in Sayona Quebec for the purpose of furthering our investment and strategic partnership in Quebec, Canada with Sayona. The remaining 75% equity interest is held by Sayona. Sayona Quebec holds a 100% interest in the existing

lithium mining operations of North American Lithium.

We have a long-term supply agreement with Sayona Quebec, under which Sayona Quebec will supply Piedmont Lithium the greater of 113,000 metric tons per year or 50% of spodumene concentrate production on a life-of-mine basis.

Atlantic Lithium Limited

We own an equity interest of 9.9% in Atlantic Lithium, an Australian company publicly listed on the Alternative Investment Market of the London Stock Exchange, forming a strategic partnership to explore, evaluate, mine, develop, and ultimately produce spodumene concentrate in Ghana. We have the right to acquire a 50% equity interest in Atlantic Lithium’s Ghanaian-based lithium portfolio companies (collectively, “Atlantic Lithium Ghana”), which are wholly-owned subsidiaries of Atlantic Lithium, through future staged investments.

We have a long-term supply agreement whereby Atlantic Lithium will sell 50% of spodumene concentrate produced in Ghana to Piedmont Lithium, subject to us exercising our ability to acquire an equity interest of 50% in Atlantic Lithium’s lithium-based portfolio in Ghana through expected future staged investments. See Note 5—Other Assets.

The following table summarizes the carrying amounts, including changes therein, of our equity method investments:


	Three Months Ended March 31, 2022
	Sayona		Sayona Quebec		Atlantic Lithium		Total
Balance at December 31, 2021	$	18,256,488	$	25,215,851	$	15,400,371	$	58,872,710
Additional investments	46,304		1,999,903		—		2,046,207
Loss from equity method investments	(1,421,471)		(1,066,637)		(901,395)		(3,389,503)
Share of income from equity method investments included in other comprehensive income (loss)	64,515		44,760		84,369		193,644
Balance at March 31, 2022	$	16,945,836	$	26,193,877	$	14,583,345	$	57,723,058
Fair value of equity investments where market values from publicly traded entities are readily available	$	221,488,733	Not publicly traded		$	38,678,400

During the three months ended March 31, 2021, we made an investment in Sayona of $9.3 million, including transaction costs. We had no income or loss from Sayona recorded for the three months ended March 31, 2021.

The following tables present summarized financial information for our significant equity investments compiled from information provided to us by the investee and presented in accordance with U.S. GAAP.

Summarized financial information for the three months ended and as of March 31, 2022:


	Sayona		Sayona Quebec		Atlantic Lithium
Summarized statement of operations information:
Revenue	$	—	$	—	$	—
Net loss from operations	(8,588,384)		(4,266,667)		(9,095,808)
Other comprehensive income (loss), net of tax	390,967		179,041		851,351
Comprehensive loss	(8,197,417)		(4,087,626)		(8,244,457)