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Standard Lithium Ltd (TSE:SLI)
:SLI

Standard Lithium Ltd (SLI) AI Stock Analysis

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Standard Lithium Ltd

(SLI)

Rating:50Neutral
Price Target:
Standard Lithium Ltd's overall stock score reflects significant financial challenges, including lack of revenue and reliance on external funding. Despite this, strategic partnerships and technological advancements provide a cautiously optimistic outlook. Technical indicators suggest neutral to mild downward momentum, while recent corporate events highlight potential future growth.
Positive Factors
Growth Potential
Potential longer-term growth is seen from East Texas properties, which have returned significant high-grade results.
Resource Quality
SLI's premium U.S. lithium brine resources are suitable for direct lithium extraction, supporting its 'Outperform' stock rating.
Negative Factors
Financial Strain
Landowners are seeking a 12.5% royalty rate, which would strain project cash flows.
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.

Standard Lithium Ltd (SLI) vs. iShares MSCI Canada ETF (EWC)

Standard Lithium Ltd Business Overview & Revenue Model

Company DescriptionStandard Lithium Ltd (SLI) is a leading innovative technology and lithium development company focused on advancing the lithium extraction process. Operating primarily in the energy and mining sectors, the company aims to revolutionize the way lithium is extracted and produced. The company is engaged in the exploration and development of lithium brine properties in the United States, with its flagship project located in the Smackover region of Arkansas. Standard Lithium is dedicated to creating more efficient, sustainable, and environmentally friendly methods of lithium extraction to support the growing demand for lithium-ion batteries used in electric vehicles and other technologies.
How the Company Makes MoneyStandard Lithium Ltd generates revenue through the exploration, development, and eventual production of lithium resources. The company focuses on leveraging its proprietary Direct Lithium Extraction (DLE) technology, which aims to efficiently extract lithium from brine resources while minimizing environmental impact. This innovative approach allows Standard Lithium to position itself as a cost-effective and sustainable provider of lithium, essential for various industries, particularly the electric vehicle and energy storage sectors. The company's revenue streams are expected to come from the sale of lithium products and potential partnerships or joint ventures with major industry players interested in securing a reliable and sustainable lithium supply. Additionally, Standard Lithium may benefit from licensing its DLE technology to other companies in the lithium extraction industry, further diversifying its income sources.

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
25
Negative
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
60
Neutral
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
30
Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
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
152.35M147.45M-41.99M-36.55M-25.61M-9.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.72M38.62M59.61M129.07M27.99M4.14M
Total Assets
171.09M392.99M173.50M183.65M74.08M57.76M
Total Debt
853.00K989.00K1.25M390.50K0.004.96M
Net Debt
-14.86M-51.90M-58.36M-128.67M-27.99M814.01K
Total Liabilities
11.80M53.21M14.12M7.12M2.53M12.17M
Stockholders Equity
159.29M339.77M159.38M176.53M71.54M45.60M
Cash FlowFree 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
19.66M14.44M5.02M131.93M43.08M16.62M

Standard Lithium Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.42
Price Trends
50DMA
1.98
Positive
100DMA
2.05
Positive
200DMA
2.15
Positive
Market Momentum
MACD
0.10
Negative
RSI
63.56
Neutral
STOCH
67.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLI, the sentiment is Positive. The current price of 2.42 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 1.98, and above the 200-day MA of 2.15, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SLI.

Standard Lithium Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.06B3.04-3.49%5.80%0.53%-50.39%
TSAVL
53
Neutral
$15.37M-5.23%-11500.00%
TSSLI
50
Neutral
C$472.64M2.2661.89%-132.80%
TSLAC
49
Neutral
$851.54M-8.91%
TSCRE
41
Neutral
$84.96M8.2813.24%
TSLTH
30
Underperform
C$94.11M-1139.82%60.89%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SLI
Standard Lithium Ltd
2.42
0.11
4.76%
TSE:AVL
Avalon Advanced Materials
0.03
-0.04
-61.54%
TSE:CRE
Critical Elements
0.39
-0.50
-56.18%
TSE:LTH
Lithium Ionic Corp
0.61
-0.39
-39.00%
TSE:LAC
Lithium Americas Corp.
3.89
-1.06
-21.41%

Standard Lithium Ltd Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q2-2025)
|
% Change Since: 27.37%|
Next Earnings Date:Sep 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic progress with partnerships, technological advancements, and cost management. However, financial challenges such as asset impairments and future capital requirements were notable concerns.
Q2-2025 Updates
Positive Updates
Strategic Partnership with Equinor
Announced a strategic partnership with Equinor, viewed as a validation of the company's progress and a strong signal of its future potential.
DOE Grant Finalization
Finalized a $225 million grant from the Department of Energy, indicating strong governmental support for the Southwest Arkansas project.
Successful DLE Technology Pilot
Field pilot testing of DLE technology in Southwest Arkansas surpassed key performance metrics, with over 99% lithium recovery.
Resource Expansion in East Texas
Secured significant lease positions over 185,000 acres in East Texas, with plans to publish a maiden inferred resource report.
Cost Management and Operational Efficiency
Reduced total quarter-over-quarter burn rate by approximately $6 million due to cost discipline and streamlined processes.
Negative Updates
Net Loss and Asset Impairment
Reported a net loss of $24.7 million, largely due to a $19.7 million impairment of California assets.
Future Capital Requirements
Expectation that sole funding from Equinor for projects will run out next quarter, requiring new capital contributions.
LANXESS Project Delayed
Deprioritization of the LANXESS 1A project due to focus on higher-grade, larger-scale assets in Southwest Arkansas and East Texas.
Company Guidance
During the Standard Lithium earnings call, the company provided guidance on several metrics and strategic initiatives for the six-month period ending December 31, 2024. They announced a DOE grant of $225 million, finalized in January 2025, which supports their project in Southwest Arkansas. The company's focus remains on high-grade, large-scale assets in Southwest Arkansas and East Texas, highlighting a significant area of interest of over 185,000 acres in East Texas. They reported a net loss of $24.7 million for the three months ending December 31, 2024, driven by a $19.7 million impairment of California assets. Operational efficiencies resulted in a $6 million reduction in quarter-over-quarter expenses. The company ended 2024 with a working capital of $27.5 million and cash reserves of $31.2 million. They anticipate finalizing the Southwest Arkansas FEED study and DFS by mid-2025, with the royalty rate assumption expected by the Arkansas Oil and Gas Commission around the same time.

Standard Lithium Ltd Corporate Events

Business Operations and Strategy
Smackover Lithium’s Arkansas Project Gains Priority Status from Trump Administration
Positive
Apr 21, 2025

Smackover Lithium’s South West Arkansas Project has been designated as a Priority Transparency Critical Mineral Project by the Trump Administration, highlighting its strategic importance to national security and economic prosperity. This designation ensures increased transparency and federal support, reinforcing the project’s development timeline and its role in reducing U.S. reliance on foreign lithium sources. The project is the only Direct Lithium Extraction initiative among the initial selected projects, marking a significant step in bolstering domestic lithium production and contributing to America’s leadership in the critical minerals sector.

Spark’s Take on TSE:SLI Stock

According to Spark, TipRanks’ AI Analyst, TSE:SLI is a Neutral.

The overall stock score for Standard Lithium Ltd reflects significant financial challenges, including lack of revenue and reliance on external funding. Despite this, strategic partnerships and technological advancements provide a cautiously optimistic outlook. Technical indicators suggest neutral to mild downward momentum, while recent corporate events highlight potential future growth.

To see Spark’s full report on TSE:SLI stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Standard Lithium Reports Quarterly ATM Sales Progress
Positive
Apr 12, 2025

Standard Lithium Ltd. provided a quarterly update on its ‘at-the-market’ equity program, which allows the company to issue and sell up to US$50 million of its common shares. During the quarter ending March 31, 2025, the company issued 281,900 shares on the TSX Venture Exchange and 4,289,470 shares on the NYSE American, generating gross proceeds of C$633,409 and US$6,705,092, respectively. This strategic financial maneuver is expected to bolster the company’s capital, supporting its ongoing projects and enhancing its position in the lithium market.

Spark’s Take on TSE:SLI Stock

According to Spark, TipRanks’ AI Analyst, TSE:SLI is a Neutral.

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.

To see Spark’s full report on TSE:SLI stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Standard Lithium Advances Key Projects in Arkansas and Texas
Positive
Mar 26, 2025

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.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Standard Lithium Advances Towards Commercialization with Key Developments
Positive
Mar 24, 2025

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.

Executive/Board Changes
Standard Lithium Strengthens Board with New Appointment
Positive
Mar 19, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Standard Lithium Achieves Key Milestone in Lithium Extraction Technology
Positive
Mar 11, 2025

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.

Business Operations and Strategy
Standard Lithium to Participate in 37th Annual Roth Conference
Positive
Mar 5, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.