Source: Peter Epstein for Streetwise Reports (01/22/2020), Drilling Confirms, Extends PGE Mineralization at Montana Project, A.I.S. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. 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. The project is located in El Dorado, where Standard Lithium already has over 150,000 acres of permitted brine operations named the Smackover Formation. Compare that figure to Standard Lithium's interest in the after-tax NPV of 30% x C$1.336 billion = C$400 million. He holds an MBA degree in financial analysis from New York University's Stern School of Business. Standard Lithium (TSXV: SLL) announced that it … The Critical Investor delves into this lithium firm's recovery method for its Arkansas project and why it may succeed when other companies' have not. [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. New results include long, high-grade polymetallic intervals. First Cobalt, Last Man Standing in North American Cobalt Sector Source: Peter Epstein for Streetwise Reports (09/05/2019). 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 … Standard Lithium Arranges C$5 Million Convertible Loan Financing Source: The Critical Investor for Streetwise Reports (11/05/2019). {{article|fields:'dates'|date:dateArticleFormat}}, ALL MATERIAL SUBJECT TO STRICTLY ENFORCED COPYRIGHT LAWS.© EUROMONEY GLOBAL LIMITED. 4) The article does not constitute investment advice. Haircutting the assumed margin in Standard's PEA by one-third to be conservative still results in a healthy 45% operating EBITDA margin. Peter Epstein of Epstein Research does the math and reviews the details of an expected joint venture and the lithium market overall, and determines this company will benefit from the upsides. Standard Lithium appears to have the funding piece of the puzzle largely in place. © 2020 Streetwise Reports. Note, the current share price is C$0.91. In the chart below, one can see that a sample of lithium producers is trading at an average EV to trailing 12-month revenue multiple of 7.5x. The goal of the agreement, which may lead to a joint venture, is to develop commercial opportunities related to the production, marketing and sale of battery grade lithium products. But fresh production from a plethora of new projects has since halted the gains, with prices having slipped lower in recent months. Finished lithium products will be used internally for testing, and, more importantly, will provide Lanxess proof of concept for its final investment decision. Commercial production is expected to commence in 2022 with full phase 1 production of 9,700 tonnes Lithium Carbonate Equivalent (LCE)/year (2,910 tonnes LCE net to Standard) reached in 2023. MB Apex contains leader boards of analysts based upon the accuracy of their most recent price predictions. The Fastmarkets MB archives cover historical news and pricing data going back to 1997. 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. Southern brine plant at the Lanxess project in Arkansas. [ER] is not directly employed by any company, group, organization, party or person. The DP showcases Standard's proprietary LiSTR technology that uses a solid sorbent material to selectively extract lithium. A pilot facility was set up on the plant premises and commissioned at the beginning of March 2020. Then, management believes a final JV agreement with Lanxess Corp. will be signed. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions. 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. A.I.S. The environmentally friendly process eliminates the need for evaporation ponds and reduces processing time from 12–18 months to a matter of hours, while, at the same time, greatly increasing lithium recovery rates. Standard Lithium in Final Stages of De-risking New Recovery Method; Giant JV Partner Could Fully Fund Capex When Successful Source: The Critical Investor for Streetwise Reports (09/25/2019). The pair aims to eventually produce lithium — a key component of electric vehicle batteries — on a … Get a sample report here. 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). The technical and economic feasibility of the project is under examination. For now, Standard has gathered the data to underpin production costs. All lithium carbonate, lithium hydroxide and lithium spodumene prices are available in our Battery Raw Materials Market Tracker. 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. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. 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. About Standard Lithium Ltd. The Demonstration Plant utilizes the Company’s proprietary LiSTR technology to selectively extract lithium from LANXESS’ tailbrine. Click here for important disclosures about sponsor fees. The shares of Standard Lithium are highly speculative, not suitable for all investors. Notice the pick-up trucks on the left and the UFO in the upper left corner! is not to be considered implicit or explicit investment advice. The direct lithium extraction demonstration plant is expected to produce up to 150 tonnes of lithium a … 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. In the end, Lanxess will potentially own 6,251,250 + 3,125,625 = 9,376,875 shares in Standard Lithium, paying an average price of ~C$0.93. Learn more about Fastmarkets’ lithium pricing methodology and read the latest lithium price spotlight here. The author was not paid by Streetwise Reports for this article. To bookmark a price click on the ‘Add to my saved prices’ icon in Price Book. Prices for lithium, a key metal used in the production of batteries, soared amid a demand shock while the drive to electrify transportation gathered pace. By NOT falling behind, Standard has caught up to Lithium Triangle projects, and could be in production ahead of the pack. On October 30, Standard Lithium Ltd. (TSXV: SLL) (OTCQX: STLHF) obtained a C$5 million five-year loan, at just 3% interest from strategic partner Lanxess. Successful operation of the technology at pre-commercial continuous scale has directly extracted lithium from brine in Arkansas and produced a purified, concentrated intermediate product (LiCl solution) which has been converted to better than battery … 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. At the time this interview was posted, Peter Epstein owned shares of Standard Lithium, and the Company was an advertiser on [ER]. All rights reserved. /images/sites/846/navigation-images/prices/nav-apex.png was removed, /images/sites/846/navigation-images/prices/nav-price-feeds.png was removed, Please enter at least one recipients email address, Please enter at least one recipients name, German crude steel production grows 10.7% in December, WV Stahl says, Fastmarkets assessed the battery-grade lithium carbonate price, {{article|snippet:'title'|removeHtmlTags}}, IN CASE YOU MISSED IT: 5 key stories from January 21, IN CASE YOU MISSED IT: 5 key stories from January 20, IN CASE YOU MISSED IT: 5 key stories from January 19, IN CASE YOU MISSED IT: 5 key stories from January 18, Modern Slavery Act Transparency Statement. Peter Epstein is the founder of Epstein Research. A complete list of all Fastmarkets MB's metal, steel and scrap prices, contained within our pricing analysis tool, Price Book. If all goes reasonably as planned, it should take just a few months to prove the company's proposed operational flow sheet. The Company is also pursuing the resource development of over … That's an annualized production rate of 100–150 tonnes of LCE. As can be seen, it's a fairly significant structure. 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. Peter Epstein of Epstein Research provides an update on a company with a lithium project in Arkansas. [ER] is not responsible under any circumstances for investment actions taken by the reader. The author is wholly responsible for the validity of the statements. The Company is also pursuing the resource development of over … ", Significant vote of confidence in Standard Lithium's JV project. LANXESS is therefore combining its business activities in this area to support a group wide initiative for e-mobility. With initial production at its Argentina project expected in 2022, Peter Epstein of Epstein Research believes the company could be an "excellent" bet when lithium prices rebound. When fully commissioned, the DP will continuously process an input "tail-brine" flow of ~50 gallons per minute. Standard Lithium Ltd.’s (TSXV:SLL) (OTC:STLHF) flagship LANXESS Project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction from over 150,000 acres of permitted brine operations utilising the Company’s proprietary selective extraction technology. As can be seen, the range of per-share values is wide; from C$1.30 to C$5.14. Germany-based Lanxess operates three plants for the production of bromine products in El Dorado. Standard Lithium Remains on Course to Production in 24–30 Months Source: Peter Epstein for Streetwise Reports (08/29/2019). 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. Assuming the new warrants get exercised, the company would have roughly 97.5 million shares outstanding and would have raised a total of $8.75 millin. Hutchinson said, “In the two short years since Patty Cardin of Lanxess introduced me to the team of Andy Robinson and Robert Mintak of Standard Lithium, the company has moved from a … Get the Latest Investment Ideas Delivered Straight to Your Inbox. That's a critical part of the whole story. His background is in company and financial analysis. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Image courtesy of Standard Lithium. For the past year, I've been saying that the company should be able to reach commercial production with fairly minimal equity dilution. 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