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VANCOUVER - Standard Lithium Ltd. (TSXV:SLI) (NYSE American:SLI), a company focused on lithium extraction, has announced progress in its corporate objectives, particularly concerning its South West Arkansas (SWA) Project. Trading at $1.37, the stock has seen a -12.6% return year-to-date, though InvestingPro analysis suggests the stock is currently undervalued. The company has initiated a project finance and off-take process for the SWA Project, which is expected to produce 22,500 tonnes of battery-grade lithium carbonate annually. With a strong financial health score rated as "GOOD" by InvestingPro, and a comfortable current ratio of 4.37, the company appears well-positioned to execute its plans. A banking advisor has been appointed to lead this process, which began in January and is slated for completion in the third and fourth quarters of this year.
In addition, Standard Lithium and its partner Equinor are expanding their mineral leasing program in East Texas through the Smackover Lithium JV. The joint venture, established in May 2024, has grown its lease position to 185,000 acres across several counties. The company’s strong financial position is reflected in its impressive Altman Z-Score of 10.65, indicating very low bankruptcy risk. The first project area, encompassing about 67,000 acres in Franklin County, has shown promising lithium brine grades, with a maximum of 806 mg/L. Resampling of existing wells is planned for the second and third quarters, and an Inferred Resource Report is anticipated for release in the third quarter. Get access to more detailed financial metrics and exclusive insights with InvestingPro.
The company is also collaborating with Koch Technology Solutions at the Demonstration Plant in Union County, which serves as a test and development center for Direct Lithium Extraction (DLE) technology. This plant is crucial for demonstrating the commercial viability of the DLE process for the SWA Project and for improving future project flowsheets.
While the Lanxess Projects remain a consideration, Standard Lithium is prioritizing the development of the SWA Project and potential projects in East Texas. With a return on assets of 55.11% in the last twelve months, the company’s asset utilization appears strong. CEO David Park expressed confidence in the strategic focus on these regions, emphasizing the potential to establish premier lithium brine assets in North America.
Standard Lithium will hold a conference call and webcast on Friday, March 28, at 3:30 p.m. ET to discuss its financial results for the six-month period ending December 31, 2024. Participants can join the call via webcast or phone.
The company’s flagship projects are situated in the Smackover Formation, recognized for its high-grade lithium brine resources, and span across Arkansas and Texas. Standard Lithium trades under the symbol "SLI" on the TSX Venture Exchange and the NYSE American.
This article is based on a press release statement from Standard Lithium. The company cautions that forward-looking statements contained in the release are subject to significant risks and uncertainties, and actual results may differ materially from those anticipated.
In other recent news, Standard Lithium Ltd. has announced the appointment of Karen G. Narwold to its board of directors. Narwold brings over thirty years of executive leadership experience, including her recent role as Chief Administrative Officer at Albemarle Corporation. Her extensive background in legal, compliance, and corporate development is expected to enhance the company’s governance and operational capabilities. This strategic addition to the board aligns with Standard Lithium’s ongoing efforts to advance its lithium projects. The company is actively working on its flagship projects in the Smackover Formation, collaborating with partners like Equinor and LANXESS Corporation. Narwold’s experience is anticipated to support Standard Lithium’s ambitions to lead in sustainable lithium production. Her role on the board is also seen as a boost to the company’s governance structure. These developments follow Standard Lithium’s commitment to innovative lithium extraction and purification methods.
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