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. First Cobalt, Last Man Standing in North American Cobalt Sector Source: Peter Epstein for Streetwise Reports (09/05/2019). LANXESS is therefore combining its business activities in this area to support a group wide initiative for e-mobility. 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. If Lanxess is willing to invest today, at PEA-stage, with dismal lithium market sentiment, I imagine they might be willing to invest again in 2020 or 2021. That's an annualized production rate of 100150 tonnes of LCE. Standard Lithium’s plan is to start with what’s already there: in this case, bromine waste brine. 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. /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. You can enter a maximum of 5 recipients. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. That, or be a cornerstone order in future capital raises. Eighteen months ago it was closer to 10x. Several in Argentina were expected to reach first production in 2021 or 2022. Get a sample report here. 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. 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. In 202021 management will be tweaking the DP, sending out lithium product samples and working on a Pre-Feasibility Study. Standard Lithium Arranges C$5 Million Convertible Loan Financing Source: The Critical Investor for Streetwise Reports (11/05/2019). 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). If true, the company is pretty far along in having meaningfully de-risked the project. The author was not paid by Streetwise Reports for this article. Therefore, the pro forma Enterprise Value (EV) [market cap + debt cash] with shares currently at C 0.91 is about C$82 million. This article is not a solicitation for investment. The Lanxess Smackover lithium project is expected to produce up to 209,000 tonnes of battery-grade lithium a year. The Critical Investor delves into a lithium company's financing and its implications. Standard Lithium Ltd (CVE: SLL) (OTCQX: STLHF) (FRA: S5L) is an innovative technology and lithium development company operating out of El Dorado, Arkansas and Vancouver, Canada. 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. About Standard Lithium Ltd. Standard Lithium would contribute rights and leases held in the Smackover Formation and make Lanxess a joint venture partner in the pilot plant Standard Lithium is building in Canada and then planning to move to south Arkansas, Mintak said. The chart below shows revenue scenarios for 2024 (after phases 1 and 2 are fully online). Through recent work, the company determined the best methods for its requisite lithium recovery, concentration and leaching processes. Arkansas Governor Asa Hutchinson commented, “In the two short years since Patty Cardin of LANXESS introduced me to the team of Andy Robinson and Robert Mintak of Standard Lithium… Arkansas Governor Asa Hutchinson commented, “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 facility is purpose-built to be scaled-up to commercial design capacity of 9,700 tonnes LCE/year in phase 1 production, targeted to start in 2022, and be fully ramped up in 2023. The DP is assembled on-site; commissioning started in December. Given that Standard Lithium's (TSX-V:SLL) / (OTCQX:STLHF) JV project is well on its way to being fully funded with the technical and financial support of giant specialty chemicals conglomerate Lanxess, and given that a third-party PEA has demonstrated robust project economics, Standard Lithium is arguably more de-risked than the market is giving it credit for. Standard Lithium is working with LANXESS in a phased approach as per terms of a binding memorandum of understanding, to develop commercial opportunities related … Standard could now be just two years from initial production of lithium products. To bookmark a price click on the âAdd to my saved pricesâ icon in Price Book. In addition, the amount of additional equity capital required to reach that critical point could be only C$20 million. Standard Lithium has developed an innovative method for the extraction of high-purity lithium directly from brine. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. LANXESS expects initial findings with regard to … But fresh production from a plethora of new projects has since halted the gains, with prices having slipped lower in recent months. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. Standard is trading at 20% of its 30% share of the after-tax NPV. An agreement with Glencore enabling advancement of recommissioning and expansion plans for the junior's cobalt refinery makes First Cobalt a good bet for investors, according to Peter Epstein of Epstein Research. Note, the current share price is C$0.91. For now, Standard has gathered the data to underpin production costs. Use ; to separate email addresses. Learn more about Fastmarketsâ lithium pricing methodology and read the latest lithium price spotlight here. The loan is convertible into 6,251,250 common shares, with 3,125,625 three-year warrants attached. Now might be a great time to be looking at lithium juniors, some of which could see a considerable bounce back in their share price along with lithium prices. The DP showcases Standard's proprietary LiSTR technology that uses a solid sorbent material to selectively extract lithium. Standard Lithium is leading a new wave of U.S. lithium production. The project is located in El Dorado, where Standard Lithium already has over 150,000 acres of permitted brine operations named the Smackover Formation. 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. Under the terms of the offering, the Vancouver-based development company issued 15.6 million common shares at a price of $2.20 each. Standard Lithium Remains on Course to Production in 2430 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. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. Please see the press release for further details. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. 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. (Image courtesy of Standard Lithium). Peter Epstein of Epstein Research profiles a company that is reinventing itself as moderately diversified battery metals company. 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. Im US-Bundesstaat Arkansas ist im März mit dem Partner Standard Lithium eine Pilotanlage zur Extraktion von hochreinem Lithium direkt aus Solen in Betrieb genommen worden. All lithium carbonate, lithium hydroxide and lithium spodumene prices are available in our Battery Raw Materials Market Tracker. When fully commissioned, the DP will continuously process an input "tail-brine" flow of ~50 gallons per minute. And, I discount indicative per-share valuations back 4 years at a 10%/year discount factor. The warrants were struck at a 76.5% premium to the October 30 share price. Track, chart, compare and export 950+ global metal, steel and scrap prices with Fastmarkets MB's pricing analysis tool. On February 26, 2020, the company announced that an ongoing capital raise, intended to raise C$6M, was closed at … Recent developments on several of this North American explorer's prospects are discussed in an interview with Maurice Jackson of Proven and Probable. The Demonstration Plant utilizes the Company’s proprietary LiSTR technology to selectively extract lithium from LANXESS’ tailbrine. 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. Get the Latest Investment Ideas Delivered Straight to Your Inbox. As can be seen, the range of per-share values is wide; from C$1.30 to C$5.14. 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. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Finished lithium products will be used internally for testing, and, more importantly, will provide Lanxess proof of concept for its final investment decision. Lithium Explorer Advances Nevada Project, To Publish Prefeasibility Study in Q4/19 Source: Streetwise Reports (08/30/2019). Finding solutions to deliver environment-friendly, integrated, and sometimes even automated travel on demand for new mobility is a challenge that affects us all. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 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. Millennial Lithium: Full Speed Ahead Source: Peter Epstein for Streetwise Reports (01/22/2020). Source: Peter Epstein for Streetwise Reports (01/22/2020), Drilling Confirms, Extends PGE Mineralization at Montana Project, A.I.S. COPYING AND DISTRIBUTING ARE PROHIBITED WITHOUT THE PERMISSION OF THE PUBLISHER, All Steel First prices, news and market analysis can be found here on www.metalbulletin.com. 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 partnered with global specialty company LANXESS. Peter Epstein is the founder of Epstein Research. As can be seen, it's a fairly significant structure. The Company’s 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. E-mobility is one possible way to contribute to a more sustainable future. Standard Lithium said it paid an initial $3m reservation fee to Lanxess to secure access to the tail brine, with additional fees and obligations in the future subject to certain conditions. Streetwise Reports is registered with the U.S. Patent and Trademark Office. {{article|fields:'dates'|date:dateArticleFormat}}, ALL MATERIAL SUBJECT TO STRICTLY ENFORCED COPYRIGHT LAWS.© EUROMONEY GLOBAL LIMITED. The technical and economic feasibility of the project is under examination. The industry is only going in one direction. A.I.S. 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