PIEDMONT LITHIUM INC. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in our Quarterly Report on Form 10-Q. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in our Quarterly Report on Form 10-Q and those in the sections of our Transition Report on Form 10-KT for the six-month transition period endedDecember 31, 2021 entitled "Risk Factors," "Cautionary Note Regarding Forward-Looking Statements," and "Cautionary Note Regarding Disclosure ofMineral Properties ." This management's discussion and analysis is a supplement to our financial statements (including notes) referenced elsewhere in our Quarterly Report on Form 10-Q and is provided to enhance your understanding of our operations and financial condition. This discussion is presented in millions, and due to rounding, may not sum or calculate precisely to the totals and percentages provided in the tables.
Executive Overview
Piedmont Lithium , a development-stage company, is building a multi-asset, integrated lithium business to support the creation of a clean energy economy inNorth America and help secure America's energy independence. Our global portfolio of assets is primed to source and manufacture lithium products that will mitigate the critical raw materials shortage confronting theU.S. electric vehicle and battery supply chains. Our lithium projects are strategically located inCanada ,Ghana , and in the southeasternU.S. We plan to develop and integrate our resources and operations with the aim of bringing production online consecutively in 2023 (Quebec ), 2024 (Ghana ), 2025 (LHP-2) and 2026 (Carolina Lithium). Our equity investments in strategic partnerships that own lithium assets inCanada andGhana add geographic diversity and provide the opportunity for near-term production and revenue. Our wholly-ownedCarolina Lithium Project is located on the renowned Carolina Tin-Spodumene Belt inNorth Carolina . The location and promise of our domestic and international lithium assets, combined with our two plannedU.S. lithium hydroxide plants, uniquely positionPiedmont Lithium to be a large, low-cost, sustainable producer of lithium products. The geology, geography, proximity, and planned production timeline of our operations should allow us to deliver a valuable and continuous supply of high-quality, sustainably produced lithium hydroxide from spodumene concentrate.Piedmont Lithium is poised to play an important role in supporting the increasing industry demand for lithium inNorth America as the economies shift towards the electrification of transportation and energy storage.
Strategy
Our strategy is to become a leading producer of lithium hydroxide inNorth America through diverse, sustainable, and technically advanced operations. We believe our global portfolio of hard rock lithium assets should support a level of estimated lithium hydroxide production, all from spodumene concentrate, that will dramatically expand current North American production. American demand for large vehicles and the custom of driving relatively long distances, combined with automakers' plans for and commitments to electric vehicle production, will continue to expand the demand for North American lithium hydroxide. We believe that spodumene concentrate represents the lowest-risk and most commercially scalable raw material source for the production of lithium hydroxide. Our plan to produce battery-grade lithium hydroxide from spodumene concentrate will use the innovative Metso:Outotec alkaline pressure leach flow sheet combined with a number of processes commonly used in the lithium industry today. As part of our strategy, we will continue to evaluate new technologies and opportunities to expand our resource base and production capacity. We have four key capital projects that are being developed on a measured timeline to provide the potential for both near-term cash flow and long-term value maximization. When fully operational, we will have an estimated lithium hydroxide manufacturing capacity of 60,000 metric tons per year, versus total estimated 2021 U.S. production of 15,000 metric tons per year. Our hydroxide conversion capacity is supported by production and offtake rights of approximately 500,000 metric tons of spodumene concentrate per year. 20
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Developing An Integrated Lithium Production Business: Key Projects and Timing
•Quebec Projects-We own an equity interest of 25% in Sayona Quebec, which owns the full interests in the Quebec Projects including North American Lithium, theAuthier Project and theTansim Project . These projects are located in the Abitibi region ofQuebec, Canada . Additionally, we own an equity interest of approximately 14% in Sayona, the parent company of Sayona Quebec. InJune 2022 ,Piedmont Lithium and Sayona Mining formalized restart plans for North American Lithium inQuebec . This will feature significant operational upgrades totaling approximately$80 million aimed at improving product quality and plant utilization. Long-lead equipment has been ordered and detailed design engineering has commenced, and we expect operations at North American Lithium to commence in the first half of 2023, subject to the receipt of remaining permit transfers and approvals for the project. The restart project will be entirely funded from pro-rata cash contributions by Sayona andPiedmont Lithium , with each party having completed significant capital raises in the first half of 2022. We also hold an offtake agreement with Sayona Quebec to purchase the greater of 113,000 metric tons per year of spodumene concentrate or 50% of production from the North American Lithium and Authier projects for the life of the mine. Purchases are subject to market pricing with a price floor of$500 per metric ton and a price ceiling of$900 per metric ton. In the event Sayona andPiedmont Lithium jointly construct and operate a lithium conversion plant, then spodumene concentrate produced from North American Lithium would be preferentially delivered to that conversion plant upon start of operations. Any remaining spodumene concentrate not delivered to a jointly owned conversion plant would first be delivered to Piedmont lithium up toPiedmont Lithium's offtake right and then to third parties. •Ghana Project-We own an equity interest of approximately 10% in Atlantic Lithium and have the ability to earn a 50% equity interest in Atlantic Lithium's Ghanaian lithium portfolio.The Ghana Project is Atlantic Lithium's flagship project in theCape Coast region ofGhana , approximately 70 miles via a national highway to a major port for transport to our plannedU.S. -based lithium hydroxide plant for conversion. The resource, which is comprised of high-grade, course grained spodumene, is expected to be fully permitted in 2023. We expect construction of the mine and concentrator to begin in 2023 and production of spodumene concentrate to begin in 2024.
In addition to our equity investment, we hold an offtake agreement with Atlantic
Lithium to purchase 50% of the spodumene concentrate produced by the
•U.S.-Based Lithium Hydroxide Plant (LHP-2)-We are currently working toward concluding the site selection process for a projected 30,000 metric tons per year, lithium hydroxide plant referred to as LHP-2. We expect to announce the site selection in the third quarter of 2022. We have commenced front-end engineering design of theLHP-2 Project with an expected completion in early 2023, and we expect to publish a feasibility study before the end of 2022. Construction of the facility is expected to begin in the first half of 2023, subject to receipt of permits, with first production targeted for 2025. Under our current plans, we expect that LHP-2 will be the largest lithium hydroxide plant inNorth America and the first of its kind, using the innovative Metso:Outotec technology. Raw material supply for the conversion plant is expected to be sourced principally from the Company's Ghanaian operations. •Carolina Lithium Project-Our wholly-owned, fully integratedCarolina Lithium Project ("Carolina Lithium") is a development stage, hard rock lithium project located within the Carolina Tin-Spodumene Belt, in close proximity to lithium and byproduct markets. Carolina Lithium consists of a proposed mine, concentrator, and lithium hydroxide conversion plant. A feasibility study completed inDecember 2021 estimated a project capital investment requirement of approximately$988 million and the project is expected to produce 30,000 metric tons of lithium hydroxide per year. Given the quality of this asset, integration of the operation, strong infrastructure, and proximity to lithium and byproduct markets, we believe Carolina Lithium will enable us to be one of the lowest cost producers in the world. We are currently engaged in permitting, rezoning, and financing activities with state and local representatives for Carolina Lithium. Our goal is to obtain the necessary permits and rezoning in 2023, commence construction in 2024, and begin production of lithium hydroxide in 2026. For further discussion of permitting for ourCarolina Lithium Project , see Part I, Item 1. "Business.-Permits," included in our Transition Report for the six-month period endedDecember 31, 2021 , and our Form 10-Q for the quarter ended March, 31, 2022. 21
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Highlights for the Six Months Ended
•In
•Our pro-rata equity contribution to the restart of North American Lithium;
•Completion of a definitive feasibility study and final investment decision for
the
•Front-end engineering design and permitting activities for our LHP-2 project once site selection is finalized; and
•Land acquisitions, permitting activities, and local approvals for the
•InFebruary 2022 , we completed a preliminary economic assessment for a proposed merchant lithium hydroxide conversion plant (LHP-2) to expand our planned manufacturing capacity in theU.S. to 60,000 metric tons of lithium hydroxide per year. The results of our preliminary economic assessment demonstrate the potential for us to expand our lithium hydroxide manufacturing business from our existing spodumene concentrate offtake agreements with Atlantic Lithium and Sayona Quebec as well as from market sources. •InMay 2022 , our partner, Sayona, published a pre-feasibility study for the restart of spodumene concentrate operations for North American Lithium. We are currently exploring marketing options for spodumene concentrate production contemplated in our offtake agreement with Sayona, which providesPiedmont Lithium the right to purchase the greater of 50% of production or 113,000 metric tons per year from North American Lithium. •InJune 2022 ,Piedmont Lithium and Sayona Mining formalized restart plans for North American Lithium inQuebec . This will feature significant operational upgrades totaling approximately$80 million aimed at improving product quality and plant utilization. Long-lead equipment was ordered, and detailed design engineering commenced in late 2021 based on our jointly planned timeline. Operations at North American Lithium are expected to commence in the first half of 2023, subject to remaining permit transfers and approvals. The restart project will be entirely funded from pro-rata cash contributions by Sayona andPiedmont Lithium , with each party having completed significant capital raises in the first half of 2022. •InJune 2022 , we applied for a loan for ourLHP-2 Project with theDepartment of Energy under the Advanced Technology Vehicle Manufacturing Program ("ATVM") Program. •InJune 2022 , we received a conditional invitation to due diligence for ourCarolina Lithium Project from theDepartment of Energy for our ATVM loan application. The conditional invitation requires, among other things, that ourCarolina Lithium Project is rezoned to industrial zoning.
Change in Fiscal Year End
EffectiveJanuary 1, 2022 , we changed our fiscal year end fromJune 30 to December 31 . The six-month period fromJuly 1, 2021 toDecember 31, 2021 served as a transition period. Our fiscal year 2022 commenced onJanuary 1, 2022 and will end onDecember 31, 2022 . See our Transition Report filed with theSEC onFebruary 28, 2022 .
Critical Accounting Polices and Estimates
Our management's discussion and analysis of our financial condition and results of operations is based on our unaudited consolidated financial statements, which have been prepared in accordance withU.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
There have been no material changes in the significant accounting policies
followed by us during the six months ended
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COVID-19 Response
To protect the health and safety of our employees, contractors, visitors and communities, we implemented a comprehensive plan in response to the COVID-19 pandemic. Our plan included policies and protocols governing issues such as close contact exposure and contraction of COVID-19 and other communicable diseases, providing employees with additional personal protective equipment, and allowing our employees to work remotely. We have provided paid time off for employees impacted by COVID-19, reimbursed employees for costs associated with COVID-19 testing, provided time for employees to get vaccinated, and encouraged flexible work schedules to accommodate personal and family needs. Our business was not materially impacted by negative impacts from COVID-19. We will continue to monitor guidelines and recommendations from theU.S. Center for Disease Control and Prevention (CDC ) and theWorld Health Organization (WHO ) as well as from local, state and federal governments.
Components of our Results of Operations
Exploration and Mine Development Costs
We incur costs in resource exploration, evaluation and development during the different phases of our resource development projects. Exploration costs incurred before the declaration of proven and probable ore reserves, which primarily include exploration, drilling, engineering, metallurgical test-work, site-specific reclamation, and compensation for employees associated with exploration activities, are expensed as incurred. We have also expensed as incurred engineering costs attributable to the evaluation of land for our future chemical plant and concentrator, development project management costs, feasibility studies and other project expenses that do not qualify for capitalization. After proven and probable ore reserves are declared, exploration and mine development costs necessary to bring the property to commercial capacity or increase the capacity or useful life will be capitalized.
General and Administrative Expenses
General and administrative expenses relate to overhead costs, such as employee compensation and benefits for corporate management and office staff including accounting, legal, human resources and other support personnel, professional service fees, insurance, and costs associated with maintaining our corporate headquarters. Included in employee compensation costs are cash and stock-based compensation expenses. Other (Expense) Income Other (expense) income consists of interest income (expense), and foreign currency exchange gain (loss). Interest income consists of interest earned on our cash and cash equivalents. Interest expense consists of interest incurred on long-term debt related to noncash acquisitions of mining interests financed by the seller as well as interest incurred for lease liabilities. Foreign currency exchange gain (loss) relates to our foreign bank accounts and marketable securities denominated in Australian dollars.
Loss from Equity Investments in Unconsolidated Affiliates, Net of Tax
Loss from equity investments in unconsolidated affiliates, net of tax, reflects
our proportionate share of the net loss resulting from our investments in
Sayona, Sayona Quebec and Atlantic Lithium. These investments are recorded under
the equity method and adjusted each period, on a one-quarter lag, for our share
of each investee's loss.
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Results of Operations
Three Months EndedJune 30, 2022 Compared to Three Months EndedJune 30, 2021 Three Months Ended June 30, 2022 2021 $ Change % Change
Exploration and mine development costs
(74.6)%
General and administrative expenses 7,461,365 4,002,054 3,459,311 86.4%
Loss from operations (8,344,239) (7,479,381) (864,858) 11.6%
Other (expense) income (81,685) (88,965) 7,280 (8.2)%
Loss from equity investments in unconsolidated (1,155,379) (64,626) (1,090,753) *
affiliates, net of tax
Net loss $ (9,581,303) $ (7,632,972) $ (1,948,331) 25.5%
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* Not meaningful.
Exploration and Mine Development Costs
Carolina Lithium entered the development stage inDecember 2021 . As such, direct costs incurred in the three months endedJune 30, 2022 were capitalized and recorded to "Property, plant, and mine development, net" in the consolidated balance sheets. Direct costs incurred in the three months endedJune 30, 2021 were recorded to "Exploration and mine development costs" in the consolidated statements of operations. Exploration and mine development costs decreased$2.6 million , or 74.6%, to$0.9 million in the three months endedJune 30, 2022 compared to$3.5 million in the three months endedJune 30, 2021 . The decrease was primarily due to the capitalization of direct costs totaling$2.3 million during the three months endedJune 30, 2022 , as discussed above. Excluding the impact of capitalizing direct costs of$2.3 million in the three months endedJune 30, 2022 , exploration and mine development costs decreased$0.3 million , or 9.2%, to$3.2 million in the three months endedJune 30, 2022 compared to$3.5 million in the three months endedJune 30, 2021 . The decrease in costs was primarily driven by a decline in drilling activities, partially offset by an increase in engineering, permitting and metallurgical testwork activities and an increase in employee compensation expenses related to additional headcount in the three months endedJune 30, 2022 compared to the three months endedJune 30, 2021 .
General and Administrative Expenses
General and administrative expenses increased$3.5 million , or 86.4%, to$7.5 million in the three months endedJune 30, 2022 compared to$4.0 million in the three months endedJune 30, 2021 . The increase in general and administrative expenses was primarily due to increased professional fees, including legal and accounting services, consulting services, and insurance expense as we became subject toU.S. public company requirements as part of the Redomiciliation. Employee compensation costs also contributed to higher general and administrative expenses due to the hiring of additional management and support staff at our headquarters inBelmont, North Carolina . Stock-based compensation expense was$1.3 million and$0.3 million in the three months endedJune 30, 2022 andJune 30, 2021 , respectively.
Other (Expense) Income
Other (expense) income was less than
Loss from Equity Investments in Unconsolidated Affiliates
Loss from equity investments in unconsolidated affiliates, net of tax, was$1.2 million in the three months endedJune 30, 2022 compared to$0.1 million in the three months endedJune 30, 2021 . The loss reflects our proportionate share of the net loss resulting from our investments in Sayona, Sayona Quebec, and Atlantic Lithium. Due to the timing of our equity investments in Sayona Quebec and Atlantic Lithium, we did not have income or loss from these equity investments in the three months endedJune 30, 2021 . 24
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Six Months Ended
Six Months Ended
June 30,
2022 2021 $ Change % Change
Exploration and mine development costs
(85.6) %
General and administrative expenses 13,039,370 6,687,431 6,351,939 95.0 %
Loss from operations (14,090,082) (13,989,767) (100,315) 0.7 %
Other (expense) income (100,971) (154,617) 53,646 (34.7) %
Loss from equity investments in unconsolidated
affiliates, net of tax (4,544,882) (64,626) (4,480,256) *
Net loss $ (18,735,935) $ (14,209,010) $ (4,526,925) 31.9 %
__________________________
* Not meaningful.
Exploration and Mine Development Costs
For purposes discussed above, direct exploration and mine development costs incurred in the six months endedJune 30, 2022 were capitalized and recorded to "Property, plant, and mine development, net" in the consolidated balance sheets. Direct costs incurred in the six months endedJune 30, 2021 were recorded as expense to "Exploration and mine development costs" in the consolidated statements of operations. Exploration and mine development costs decreased$6.3 million , or 85.6%, to$1.1 million in the six months endedJune 30, 2022 compared to$7.3 million in the six months endedJune 30, 2021 . The decrease was primarily due to the capitalization of direct costs totaling$5.2 million in the six months endedJune 30, 2022 . Excluding the impact of capitalizing direct costs of$5.2 million in the six months endedJune 30, 2022 , costs decreased$1.1 million , or 14.8%, to$6.2 million in the six months endedJune 30, 2022 compared to$7.3 million in the six months endedJune 30, 2021 . The decrease in costs was primarily driven by a decline in drilling activities, partially offset by an increase in engineering, permitting and metallurgical testwork activities and an increase in employee compensation expenses related to additional headcount in the six months endedJune 30, 2022 compared to the six months endedJune 30, 2021 .
General and Administrative Expenses
General and administrative expenses increased$6.4 million , or 95.0%, to$13.0 million in the six months endedJune 30, 2022 compared to$6.7 million in the six months endedJune 30, 2021 . The increase in general and administrative expenses was primarily due to increased professional fees, including legal and accounting services, consulting services, and insurance expense as we became subject toU.S. public company requirements as part of the Redomiciliation. Employee compensation costs also contributed to higher general and administrative expenses due to the hiring of additional management and support staff at our headquarters inBelmont, North Carolina . Stock-based compensation expense was$1.4 million and$0.6 million in the six months endedJune 30, 2022 andJune 30, 2021 , respectively.
Other (Expense) Income
Other (expense) income decreased$0.1 million , or 34.7% from$0.1 million in the six months endedJune 30, 2022 compared to$0.2 million in the six months endedJune 30, 2021 . The decrease in other expense was due to an increase in foreign currency exchange income as well as a decrease in interest expense.
Loss from Equity Investments in Unconsolidated Affiliates
Loss from equity investments in unconsolidated affiliates, net of tax, was$4.5 million in the six months endedJune 30, 2022 compared to$0.1 million in the six months endedJune 30, 2021 . The loss reflects our proportionate share of the net loss resulting from our investments in Sayona, Sayona Quebec, and Atlantic Lithium. For purposes discussed above, we did not have income or loss from equity investments in Sayona Quebec or Atlantic Lithium in the six months endedJune 30, 2021 . 25
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Liquidity and Capital Resources
Overview
As ofJune 30, 2022 , we had cash and cash equivalents of$139.0 million compared to$64.2 million as ofDecember 31, 2021 . As ofJune 30, 2022 , our cash balances held in theU.S. totaled$137.5 million , or 98.9%, and the remaining$1.6 million , or 1.1%, of our cash balances were held inAustralia . Our cash balances inAustralia can be repatriated to theU.S. with inconsequential tax consequences. Our predominant source of cash has been generated through equity financing from issuances of our common stock. Prior to 2022, we had entered into noncash seller financed debt agreements to acquire land for Carolina Lithium. Since our inception, we have not generated revenues, and as such, have principally relied on equity financing to fund our operating and investing activities and to fund our debt payments. Our primary uses of cash during the six months endedJune 30, 2022 consisted of: (i) equity investments in Sayona Quebec mainly for the operational restart of North American Lithium totaling$9.0 million ; (ii) purchases of real property and associated mining interests of$8.3 million and exploration and development expenditures of$3.2 million for Carolina Lithium; (iii) advances to Atlantic Lithium for exploration and evaluation activities related to phase one of theGhana Project totaling$7.1 million ; and (iv) working capital. As ofJune 30, 2022 , we had working capital of$137.4 million .
As of
InMarch 2022 , we issued 2,012,500 shares of our common stock at$65.00 per share for$130.8 million . We received cash proceeds of$122.1 million , which is net of$8.7 million in share issuance costs associated with theU.S. public offering under our shelf registration statement. As ofJune 30, 2022 , we had$369.2 million remaining under our shelf registration statement, which expires onSeptember 24, 2024 . Outlook We expect our current cash balances to fund our planned cash expenditures in 2022 primarily related to: (i) funding for the Quebec Projects inCanada ; (ii) funding for phase one of theGhana Project ; (iii) land acquisition costs, engineering, permitting and construction activities associated with ourLHP-2 Project ; (iv) costs associated with ourCarolina Lithium Project including, but not limited to, land and associated mineral rights acquisitions and continued permitting, engineering and testing activities; and (v) working capital requirements. Our funding for the Quebec Projects primarily relates to the restart of North American Lithium, which we expect will begin production of spodumene concentrate in the first half of 2023, subject to remaining permit transfers and approvals. As ofJune 30, 2022 , we had entered into land acquisition contracts inNorth Carolina totaling$45.3 million , of which we expect to close and fund$10.2 million throughout the remainder of 2022,$18.5 million in 2023,$15.1 million in 2024, and$1.5 million in 2025. These amounts do not include closing costs such as attorney's fees, taxes and commissions. We are not obligated to exercise our land option agreements, and we are able to cancel our land acquisition contracts, at our option and with de minimis cancellation costs, during the contract due diligence period. Certain land option agreements and land acquisition contracts become binding upon commencement of construction for Carolina Lithium. Our 2022 plan does not include additional cash from equity or debt financing, cash from generating revenue, or cash distributions from our lithium projects inCanada andGhana . We believe our current cash balances are sufficient to fund our cash requirements for at least the next 12 months. In the event costs were to exceed our planned expenditures, we will reduce or eliminate current and/or planned discretionary spending. If further reductions are required, we will reduce certain non-discretionary expenditures. We will require equity or debt financing to fund planned construction costs for our projects. InDecember 2021 , we completed a feasibility study for Carolina Lithium, which estimated capital costs of approximately$988 million for the construction of a mine, concentrator and lithium hydroxide conversion plant inNorth Carolina . InMarch 2022 , we completed a preliminary economic assessment, which estimated capital costs of approximately$572 million for a second lithium hydroxide plant (LHP-2) to be constructed in the southeasternU.S. We also expect to fund significant cash expenditures for construction costs for a mine and concentrator plant inGhana with our partner Atlantic Lithium. As we approach construction decisions for our lithium projects, we will evaluate various project financing options, including possible strategic partnering opportunities. 26
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We submitted loan applications to the Advanced Technology Vehicles Manufacturing
Loan Program ("ATVM") of the Loan Programs Office of the U.S. Department of
Energy for potential funding of program eligible capital costs for two of our
proposed lithium projects. In December 2021 , we submitted our ATVM loan
application for concentrator and lithium hydroxide conversion facilities for
Carolina Lithium. In June 2022 , we submitted our ATVM loan application for a
lithium hydroxide conversion plant (LHP-2), which we expect to be located in the
southeastern part of the United States . We cannot be certain that our loan
applications will be approved or will have terms acceptable to us.
Historically, we have been successful raising cash through equity financing;
however, no assurances can be given that additional financing will be available
in amounts sufficient to meet our needs or on terms that are acceptable to us.
If we issue additional shares of our common stock, it would result in dilution
to our existing shareholders. There are many factors that could significantly
impact our ability to raise funds through equity and debt financing as well as
influence the timing of future cash flows. These factors include, but are not
limited to, permitting and approvals for our projects, our ability to access
capital markets, stock price volatility, commodity price volatility, uncertain
economic conditions, and access to labor. See Part I, Item 1A "Risk Factors." in
our Transition Report for the six-month period ended December 31, 2021 .
Cash Flows
The following table is a condensed schedule of cash flows provided as part of the discussion of liquidity and capital resources:
Six Months Ended
June 30,
2022 2021
Net cash used in operating activities $ (17,853,851) $ (12,723,445)
Net cash used in investing activities (28,688,172) (29,495,236)
Net cash provided by financing activities 121,330,736 113,933,335
Net increase in cash and cash equivalents $ 74,788,713 $ 71,714,654 Cash Flows from Operating Activities
Operating activities used$17.9 million and$12.7 million in the six months endedJune 30, 2022 and 2021, respectively, resulting in an increase in cash used in operating activities of$5.1 million . The increase in cash used in operating activities was primarily due to changes in working capital totaling$5.5 million , partially offset by a decrease in net loss adjusted for noncash items of$0.4 million , in the six months endedJune 30, 2022 compared to the six months endedJune 30, 2021 .
Cash Flows from Investing Activities
Investing activities used$28.7 million and$29.5 million in the six months endedJune 30, 2022 and 2021, respectively, resulting in a decrease in cash used in investing activities of$0.8 million . The decrease in cash used in investing activities was mainly due to a decrease in equity investments in Sayona, SayonaQuebec and Atlantic Lithium totaling$6.3 million , and a decrease in capital expenditures mainly related to cash purchases of land and associated mining interests for Carolina Lithium totaling$1.6 million . These decreases were partially offset by increases in cash advances to Atlantic Lithium for exploration and evaluation activities for phase one of theGhana Project totaling$7.1 million and in the six months endedJune 30, 2022 compared to the six months endedJune 30, 2021 .
Cash Flows from Financing Activities
Financing activities provided$121.3 million and$113.9 million in the six months endedJune 30, 2022 and 2021, respectively, resulting in an increase in cash of$7.4 million . The increase in cash from financing activities was mainly due to a$7.8 million increase in net cash proceeds from issuances of our common stock and cash exercises of stock options in the six months endedJune 30, 2022 compared toJune 30, 2021 . The cash proceeds were offset by an increase in debt payments totaling$0.5 million .
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