Get a sample report here. These are very favorable terms; Standard effectively raised capital at a premium to market at a time when most lithium juniors can't raise capital at all. Want to be the first to know about interesting, Standard Lithium Demo Plant Operating Soon, First Production in 2022, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX). Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. Details of pricing methodology changes or price corrections. It remains to be seen if Lanxess will just finalize a JV or simply could buy Standard Lithium outright, as it would own all IP as well in that case. LANXESS is therefore combining its business activities in this area to support a group wide initiative for e-mobility. Use ; to separate email addresses. In working on a broad, indicative valuation range, I assume 20 million shares get issued between now and year-end for a pro forma total of ~117,500,000. Standard Lithium has engaged Advisian, the consulting arm of WorleyParsons Canada Services, to carry out a preliminary economic assessment (PEA) on its flagship LANXESS project in the south-central region of Arkansas, the US. The waste water it usually sends back underground will instead first go through Standard Lithium’s extraction process co-located at a Lanxess production facility. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. His background is in company and financial analysis. E-mobility is one possible way to contribute to a more sustainable future. Finished lithium products will be used internally for testing, and, more importantly, will provide Lanxess proof of concept for its final investment decision. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Standard Lithium, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. At a 5x EV/2024 revenue multipleon revenue from selling lithium @ US$12,000/tonnethe indicative per-share value discounted back four years is C$2.45. The Demonstration Plant utilizes the Company’s proprietary LiSTR technology to selectively extract lithium from LANXESS’ tailbrine. Get Fastmarkets MB's pricing data delivered directly to your spread sheet or integrated within your internal ERP/workflow. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. © 2020 Streetwise Reports. The loan represents another important milestone and clear vote of confidence in Standard Lithium, the JV project in southern Arkansas, and a very impressive management and technical teams led by Robert Mintak and Dr. Andy Robinson. Near-term catalysts, most notably the operation of the DP, will provide ongoing news flow. The DP is assembled on-site; commissioning started in December. The loan is convertible into 6,251,250 common shares, with 3,125,625 three-year warrants attached. As readers of my articles and interviews know, there are a number of lithium brine projects in Argentina and Chile. You can opt out of these emails at any time. If true, the company is pretty far along in having meaningfully de-risked the project. Under certain circumstances, Standard's interest in the project and its economics can be increased from 30% to up to 40%. Through recent work, the company determined the best methods for its requisite lithium recovery, concentration and leaching processes. Standard Lithium said Tuesday that it has completed a successful start-up of its industrial-scale Direct Lithium Extraction Demonstration Plant at Lanxess’ South Plant facility near El Dorado. The author is wholly responsible for the validity of the statements. Although Standard Lithium is not yet in production and will never be a giant like SQM or Albemarle, one can imagine what an indicative valuation might look like. About Standard Lithium Ltd. This month, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) is targeted to switch on a relatively large-scale, proof-of-concept lithium extraction Demonstration Plant in southern Arkansas. On February 26, 2020, the company announced that an ongoing capital raise, intended to raise C$6M, was closed at … Building demonstration plant at Lanxess Project site After Standard Lithium (TSXV: SLL) (OTCQX: STLHF) (FRA: S5L) managed to arrange a C$5M (US$3.75M) convertible loan and guarantee agreement with Lanxess on October 30, 2019, management hasn’t been sitting on its hands. Arkansas is an advantageous place to launch their technology. 2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Peter Epstein of Epstein Research profiles a company that is reinventing itself as moderately diversified battery metals company. (Image courtesy of Standard Lithium). The Critical Investor delves into a lithium company's financing and its implications. Standard Lithium Remains on Course to Production in 2430 Months Source: Peter Epstein for Streetwise Reports (08/29/2019). For its part, Standard Lithium would contribute existing rights and leases held in the Smackover Formation and the pilot plant being developed on the property, as well as its proprietary extraction processes including all relevant intellectual property rights. The technical and economic feasibility of the project is under examination. Even more recently, a mid-December ruling by a Chilean environmental court upholding claims of excessive water use by SQM seriously threatens its expansion plans in 2020 and beyond. For now, Standard has gathered the data to underpin production costs. PGE Projects in Brownfields of Montana and Yukon Raise Expectations for Junior Miner Source: Maurice Jackson for Streetwise Reports (10/29/2019). At the time this interview was posted, Peter Epstein owned shares of Standard Lithium, and the Company was an advertiser on [ER]. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Fastmarkets assessed the battery-grade lithium carbonate price at $13-15 per kg, on a delivered duty-paid basis to Europe and the United States on Thursday November 8, unmoved from last week. 1) Peter Epstein's disclosures are listed below. Standard Lithium installed a direct lithium extraction demonstration plant at Lanxess’ South Plant facility in southern Arkansas in December 2019. Readers should take note of EBITDA margins among producers, averaging 29%. Germany-based Lanxess operates three plants for the production of bromine products in El Dorado. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. The pair aims to eventually produce lithium — a key component of electric vehicle batteries — on a … Millennial Lithium: Full Speed Ahead Source: Peter Epstein for Streetwise Reports (01/22/2020). British-native, Canadian resident (and Burnley fan) Andy Robinson is the president and chief operating officer of Standard Lithium, the Vancouver company working with Lanxess … By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. That's an annualized production rate of 100150 tonnes of LCE. Standard Lithium has paid an initial US$3,000,000 reservation fee to LANXESS to secure access to the tail brine, with additional fees and obligations in the future subject to certain conditions. Peter Epstein of Epstein Research outlines the latest from this firm operating in Nevada, which is set to release a PFS in the fourth quarter. is not to be considered implicit or explicit investment advice. Standard Lithium and global specialty chemical company Lanxess AG have signed both a binding Memorandum of Understanding (MOU) and a general Joint Venture (JV) term sheet agreement for a contemplated commercial production of battery-grade lithium compounds from brine extracted from the Smackover Formation in south Arkansas. According to its spring 2019 prospectus filing, Standard will own at least 30% of project economics and perhaps up to 40%, depending on various factors that have not been made public. This news is a meaningful step in the right direction. Although a run-rate of 100-150 tonnes LCE/year is not much by commercial standards, it's impressive as far as pilot plants go. The early-to-mid 2020s will be a very good time to be in production, a time when global demand for lithium could finally take off. Finding solutions to deliver environment-friendly, integrated, and sometimes even automated travel on demand for new mobility is a challenge that affects us all. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. The warrants were struck at a 76.5% premium to the October 30 share price. Use of proceeds will further advance the company's Demonstration Plant (DP). [ER] is not responsible under any circumstances for investment actions taken by the reader. If all goes reasonably as planned, it should take just a few months to prove the company's proposed operational flow sheet. 'S the next energy revolution and El Dorado [ Arkansas ] will play a part in.. 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