re: Diving deeper on Standard Lithium?

I still like the mid $2s as a target. As mentioned before, the lithium price is trying to hold this thing down, so we'll see

Wouldn't doubt if they are doing some fund raising to fill the coffers a little more.

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This is such bullshite.

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Yep! Added more.

Now we find out if this outfit ever intended to make it to production or if they start talking buyout.

Does the Govt grant pass through to a buyer?

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Now we find out if this outfit ever intended to make it to production or if they start talking buyout.

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They have been producing battery grade lithium since the beginning, they just couldn't sell it due to the royalty hang-up. I don't know how much the demo plant can produce, but any amount sold should make some waves.

I recall that they did install a few scaled up units a while back.

Anyone know what their current demo plant production capacity is?

No clue, but I'd guess no.

So, please just ask Grok if we should sell now?

Reasons to Consider Holding SLI

1. Recent Positive Developments:
• Royalty Approval: The Arkansas Oil and Gas Commission’s unanimous approval of a 2.5% royalty rate for the South West Arkansas (SWA) Project’s Phase 1 on May 28, 2025, is a significant milestone. This removes a regulatory hurdle and supports the project’s path to commercial production, expected by 2028 with a target of 22,500 tonnes of battery-grade lithium carbonate annually.
• Technological Progress: Standard Lithium’s Direct Lithium Extraction (DLE) technology has achieved a 99% lithium recovery rate in pilot testing, positioning the company as a leader in innovative lithium extraction. This could enhance its long-term value as demand for lithium grows with electric vehicle (EV) adoption.
• Federal Support: The SWA Project’s designation as a “priority transparency critical mineral project” under Executive Order 14241, along with a $225 million Department of Energy grant, signals strong U.S. government backing to reduce reliance on foreign lithium supplies. This could bolster investor confidence and project financing.
2. Financial Position:
• As of Q1 2025, Standard Lithium reported a cash position of $31.6 million and working capital of $31.3 million, indicating financial stability to support ongoing development. The company also reduced its net loss from $7.7 million in Q1 2024 to $1.6 million in Q1 2025, showing improved financial management.
• The company’s Altman Z-Score of 10.65 suggests a very low bankruptcy risk, and a current ratio of 4.37 reflects strong liquidity.
3. Market Sentiment:
• Posts on X indicate bullish sentiment, with some users noting SLI’s strong technical structure after breaking out above resistance levels, suggesting potential for further upside.
• Analyst coverage, such as a Seeking Alpha report from April 2025, views SLI as undervalued with significant upside potential due to its partnerships (e.g., with Equinor) and high-quality assets in the Smackover Formation.
4. Long-Term Lithium Demand:
• Despite short-term fluctuations in lithium prices (down to ~$10,600/ton from $85,000/ton two years ago), the long-term outlook for lithium remains strong due to EV growth and energy storage needs. Standard Lithium’s focus on sustainable DLE technology positions it well for future demand.


Reasons to Consider Selling SLI

1. Lack of Current Revenue:
• Standard Lithium is not yet producing lithium commercially, with full production not expected until 2028. This makes it a high-risk investment, as it relies on future milestones like completing the Definitive Feasibility Study (DFS) and securing offtake agreements.
• The company faces potential funding challenges, as its joint venture partner Equinor’s funding is expected to be exhausted in Q2 2025, requiring Standard Lithium to cover its share of capital expenditures. This could lead to stock dilution if additional financing is needed.
2. Stock Volatility:
• SLI’s stock price has been volatile, with a 1-year range of $1.07–$2.64 and a current price of $1.765 (as of May 30, 2025). While it’s up 5.06% year-over-year, it remains well below its historical highs (e.g., $39.99 in 2016). The stock surged 48.5% in October 2024 after a sector-wide rally but has since moderated.
• The lack of a P/E ratio or dividend yield reflects its pre-revenue status, making it less appealing for income-focused investors.
3. Market Risks:
• Lithium prices remain cyclical, and while some analysts believe prices have bottomed, others warn of oversupply risks if EV adoption slows. This could pressure SLI’s valuation if market conditions deteriorate.
• Competition from larger, revenue-generating lithium producers like Albemarle and SQM, which trade at lower sales multiples, could overshadow SLI’s potential in the near term.
4. Historical Risks:
• Past short reports, such as those from Hindenburg Research and Blue Orca in 2021–2022, raised concerns about SLI’s technology and financial transparency, contributing to significant stock declines. While these are older issues, they highlight the speculative nature of the stock.

I don’t see their goal being to sell the technology.

Standard owns DLE technology and has instead chosen to license Koch’s DLE technology because it’s better in several critical ways (uses less reagents and water, reduces overall opex costs). If Standard wanted to sell their tech, the sales pitch might be funny: “Please buy this tech that we ourselves turned our backs on, even before fully proving its viability at commercial scale.”