PLL - Piedmont Lithium bounces after early plunge on Blue Orca short seller report

2023-03-08 11:52:42 ET

Piedmont Lithium ( NASDAQ: PLL ) rallies off initial sharp losses on Wednesday following a negative report from short seller Blue Orca Capital, which said it does not believe that authorities in Ghana will ratify the company's mining licenses "tainted by corruption."

Blue Orca said it is short Piedmont Lithium ( PLL ) because it "found evidence that mining licenses in Ghana were obtained through what appears to be textbook corruption, [which likely] kills the Ghana lithium project and PLL's fantasy of near-term production."

Piedmont ( PLL ) invested $100M in Atlantic Lithium in 2021 to secure spodumene lithium ore from Atlantic's mine in Ghana, and Blue Orca said Atlantic obtained Ghana mining licenses by making secret payments and promises of payments to the immediate family of a high-level politician in Ghana.

Piedmont Lithium ( PLL ) earlier this year amended its spodumene lithium ore supply deal with Tesla .

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