Standard Lithium Ltd (SLI) AI Stock Analysis

• Market Cap: C$341.33M
• Dividend Yield: N/A
• Average Volume (3M): 171.85K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: -132.80%
• Country: CA
• Employees: 43
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): -0.30
• Shares Outstanding: 193,938,130
• 10 Day Avg. Volume: 138,278
• 30 Day Avg. Volume: 171,854
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -29.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.58
• Price Target Upside: 160.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Standard Lithium Ltd's overall stock score reflects its financial challenges, including a lack of revenue and reliance on external funding. Despite strategic partnerships and technological advancements, the company's current financial instability and valuation metrics pose significant risks. Technical indicators further suggest downward momentum, while the earnings call offers a cautiously optimistic outlook, balancing the score.

Positive Factors

Growth Potential

Potential longer-term growth is seen from East Texas properties, which have returned significant high-grade results.

Project Development

The phased development approach, supported by extensive demonstration testing, helps in de-risking project development.

Resource Quality

SLI's premium U.S. lithium brine resources are suitable for direct lithium extraction, supporting its 'Outperform' stock rating.

Negative Factors

Financial Impact

If the 12.5% rate sought by landowners were enacted, it would reduce NPV by ~30%, reduce SWA Stage 1 cash flows, and require additional financing buffer for the Stage 2 expansion.

Funding Challenges

Equinor's full funding is expected to run out over the next quarter, requiring SLI to start making its share of capital contributions.

Royalty Rates

Landowners are seeking a 12.5% royalty rate, which would strain project cash flows.

Standard Lithium Ltd Business Overview & Revenue Model

Company Description

Standard Lithium Ltd (SLI) is a technology and lithium development company focused on the extraction of lithium from brine resources in the United States. The company is primarily engaged in the exploration and development of lithium projects, with its flagship project being the Lanxess Project, located in southern Arkansas. Standard Lithium leverages its proprietary lithium extraction technologies to enhance the efficiency and sustainability of lithium production, thereby addressing the growing demand for lithium in the battery and energy storage sectors.

How the Company Makes Money

Standard Lithium Ltd makes money through the development and commercialization of lithium extraction technologies and the eventual sale of lithium products. The company's revenue model is centered around its proprietary lithium extraction processes, which are designed to be more efficient and environmentally friendly compared to traditional methods. Key revenue streams include the licensing of its technology to other lithium producers, joint ventures, and partnerships with companies in the lithium extraction and battery industries. Additionally, once its projects become fully operational, the company is expected to generate revenue from the sale of lithium extracted from its proprietary projects. Significant partnerships, such as those with chemical company Lanxess, play a crucial role in facilitating project development and commercial-scale production.

Standard Lithium Ltd Financial Statement Overview

Summary

Standard Lithium Ltd shows financial stability in terms of equity and low leverage, but lacks revenue generation and operates at a loss. The positive net income in recent TTM data appears anomalous in the absence of revenue. Cash flow issues highlight potential challenges in sustaining operations without external funding, posing risks to long-term viability.

Income Statement

Standard Lithium Ltd has shown consistent losses in gross profit, EBIT, and EBITDA, with no revenue generated over the reported periods. The net income improved significantly to a positive figure in the latest TTM data due to unspecified extraordinary items or accounting changes. However, the absence of revenue and persistent negative operating metrics indicate weak profitability performance.

Balance Sheet

The company maintains a strong equity position relative to its liabilities, with a low debt-to-equity ratio suggesting minimal leverage. However, the equity ratio has fluctuated over time. The firm’s total assets have significantly increased, supported by strong stockholders' equity, but without revenue generation, asset efficiency remains questionable.

Cash Flow

Operating cash flow remains negative, reflecting ongoing operational challenges. The free cash flow is also negative, indicating that the company is using more cash than it generates. The positive financing cash flow suggests reliance on external funding sources. Overall, cash flow management presents significant risks due to continuous cash burn.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.19M	-10.79M	-598.00K	-13.65M	-11.55M	-3.75M
	EBIT
-41.42M	-45.41M	-45.29M	-38.42M	-25.26M	-9.29M
	EBITDA
-38.76M	-44.75M	-48.42M	-25.98M	-14.40M	-5.11M
	Net Income Common Stockholders
152.35M	147.45M	-41.99M	-36.55M	-25.61M	-9.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.31M	38.62M	59.61M	129.07M	27.99M	4.14M
	Total Assets
31.29M	392.99M	173.50M	183.65M	74.08M	57.76M
	Total Debt
602.05K	989.00K	1.25M	390.50K	0.00	4.96M
	Net Debt
-3.71M	-51.90M	-58.36M	-128.67M	-27.99M	814.01K
	Total Liabilities
1.18M	53.21M	14.12M	7.12M	2.53M	12.17M
	Stockholders Equity
30.11M	339.77M	159.38M	176.53M	71.54M	45.60M
Cash Flow		Free Cash Flow
-54.65M	―	-78.39M	-27.74M	-19.23M	-19.33M
	Operating Cash Flow
-25.83M	―	-25.12M	-21.48M	-8.64M	-3.11M
	Investing Cash Flow
11.82M	-2.82M	-53.27M	-9.37M	-10.60M	-16.22M
	Financing Cash Flow
19.66M	14.44M	5.02M	131.93M	43.08M	16.62M

Standard Lithium Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLI, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.95, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 44.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SLI.

Standard Lithium Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%
SLI	45 Neutral	C$341.33M	2.26	61.89%	―	―	-132.80%
AVL	42 Neutral	$15.37M	―	-5.00%	―	―	-1118.18%
LTH	42 Neutral	C$122.19M	―	-408.27%	―	―	39.98%
LAC	39 Underperform	$841.94M	―	-4.13%	―	―	―
CRE	37 Underperform	C$92.59M	59.86	2.13%	―	―	―

Standard Lithium Ltd Corporate Events

Standard Lithium Advances Key Projects in Arkansas and Texas

Standard Lithium Ltd. has announced significant progress in its corporate objectives, focusing on the South West Arkansas Project and mineral leasing in East Texas. The company has initiated a project finance and off-take process for the SWA Project, aiming for substantial lithium carbonate production. Additionally, the Smackover Lithium JV with Equinor is expanding its lease position in East Texas, with plans to publish an Inferred Resource Report. These developments underscore Standard Lithium’s commitment to advancing its lithium projects and enhancing its industry positioning.

Standard Lithium Advances Towards Commercialization with Key Developments

Standard Lithium Ltd. reported its financial and operational results for the six-month fiscal period ending December 31, 2024, highlighting significant progress towards a final investment decision for its South West Arkansas project. The company secured a $225 million grant from the U.S. Department of Energy, completed successful reservoir testing and derisking of its DLE technology, and made strategic leadership additions. These developments position Standard Lithium to advance its projects and strengthen its market presence in the lithium extraction industry.

Standard Lithium Strengthens Board with New Appointment

Standard Lithium Ltd. has appointed Karen G. Narwold as an independent member of its board of directors. With over 30 years of executive leadership experience in the manufacturing and chemicals industry, Narwold’s expertise in legal, governance, and operational matters is expected to significantly benefit Standard Lithium as it advances its lithium projects. Her previous role at Albemarle Corporation, a global leader in lithium production, underscores her capability to support Standard Lithium’s growth and industry positioning.

Standard Lithium Achieves Key Milestone in Lithium Extraction Technology

Smackover Lithium, a joint venture between Standard Lithium Ltd and Equinor, has successfully completed the final field-test of its Direct Lithium Extraction (DLE) technology at the South West Arkansas project. This milestone marks a significant step towards commercialization, as the field-pilot plant exceeded key performance criteria, recovering over 99% of lithium from brine. Large volumes of the DLE product have been sent to third-party vendors for conversion into battery-quality lithium carbonate, which will be crucial in the qualification process with potential off-take partners. The successful completion of this derisking step enhances Standard Lithium’s industry positioning, demonstrating their capability to reliably process brine and produce high-quality lithium products, potentially impacting stakeholders positively by advancing towards commercialization.

Standard Lithium to Participate in 37th Annual Roth Conference

Standard Lithium Ltd. announced its participation in the 37th Annual Roth Conference, where senior leadership will engage in one-on-one meetings with investors. This participation highlights the company’s proactive approach to investor relations and its commitment to advancing its lithium development projects, potentially enhancing its market position and stakeholder engagement.

Standard Lithium and Equinor Launch Smackover Lithium Joint Venture

Standard Lithium Ltd. and Equinor have announced the establishment of Smackover Lithium as the new brand for their joint venture aimed at developing direct lithium extraction projects in Southwest Arkansas and East Texas. This initiative builds on Standard Lithium’s ongoing work in the area and aims to foster economic development and educational opportunities in the region. Smackover Lithium is set to become one of the world’s first commercial-scale DLE facilities, strengthening the partnership’s position in the critical minerals sector.

Standard Lithium and Equinor Secure $225 Million DOE Grant for Arkansas Lithium Project

Standard Lithium Ltd. and Equinor have secured a $225 million grant from the U.S. Department of Energy to support the construction of Phase 1 of the South West Arkansas project. This project, anticipated to be one of the first commercial-scale Direct Lithium Extraction facilities, is expected to produce 45,000 tonnes of lithium carbonate annually. The initiative is poised to enhance the U.S. lithium supply chain and create substantial local employment opportunities, reflecting its significant impact on the company’s industry positioning and community engagement.

Standard Lithium Advances South West Arkansas Project with New Drilling Efforts

Standard Lithium Ltd, through its joint venture SWA Lithium with Equinor ASA, has begun drilling a new well in the Smackover Formation as part of the South West Arkansas Project, aiming to fill data gaps and enhance production modeling. The project involves extensive testing and sampling efforts to improve understanding of the reservoir and brine chemistry, which are crucial for the upcoming engineering and feasibility studies, potentially impacting the company’s operational strategies and positioning in the lithium market.

Standard Lithium Reports Quarterly Equity Program Progress

Standard Lithium Ltd. reported its quarterly update on the ‘at-the-market’ equity program, issuing a total of 3,551,390 common shares on both the TSX Venture Exchange and NYSE American, generating over C$789,692 and US$6,030,482 in gross proceeds, respectively. This strategic move supports the company’s financial flexibility and strengthens its position in the lithium industry, underscoring its commitment to advancing its lithium extraction projects and enhancing shareholder value.