• Net Loss: $24.7 million for the three months ended December 31, 2024.
• Impairment Expense: $19.7 million due to the reduction of the carrying value of California properties to zero.
• General and Administrative Expenses: Reduced to approximately $2.7 million from $6.8 million quarter-over-quarter.
• Demonstration Plant Expenses: Decreased from approximately $2 million to $0.8 million.
• Management and Director Fees: Reduced from $1 million to $0.4 million.
• Working Capital: Approximately $27.5 million as of December 31, 2024.
• Cash Balance: Approximately $31.2 million at the end of 2024.
• Equinor Sole Funding: Development plans at East Texas and Southwest Arkansas are being sole funded up to $20 million and $40 million, respectively.

Release Date: March 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Standard Lithium Corp (SLI) has formed a strategic partnership with Equinor, which validates the quality of their team and resources.
• The company successfully closed a $225 million grant from the DOE, indicating strong governmental support for their Southwest Arkansas project.
• Lithium recovery at the Southwest Arkansas project exceeded design criteria, recovering over 99% of lithium from brine.
• The company has made significant progress in securing leases in East Texas, with plans to publish a maiden inferred resource report.
• Operational cost reductions have been achieved, with a near $6 million reduction in quarter-over-quarter burn rate.

Negative Points

• Standard Lithium Corp (SLI) reported a net loss of $24.7 million for the three months ended December 31, 2024, primarily due to an impairment of California assets.
• The company has reduced the carrying value of its California properties to zero, resulting in a $19.7 million impairment expense.
• Sole funding from Equinor for projects in East Texas and Southwest Arkansas is expected to run out next quarter, requiring Standard Lithium to start making capital contributions.
• There is continued uncertainty around pricing and demand in the lithium sector.
• The LANXESS project is not a current priority due to its relatively lesser grades and smaller scale compared to other projects.

Q & A Highlights

Q: What are your views on the recent executive order by the US administration to increase American mineral production, and how might it benefit Standard Lithium? A: David Park, CEO, stated that the executive order is viewed positively as it could facilitate and speed up regulatory approvals for projects like theirs and potentially open up additional funding sources. However, it's too early to provide specific details on the benefits.

Q: When do you expect to finalize the royalty structure in Arkansas? A: David Park, CEO, mentioned that they have been actively engaged with the Arkansas government and stakeholders since last November and are confident of a positive outcome regarding the Arkansas royalty by the end of the second quarter of this year.

Q: Can you discuss the status and future of the LANXESS project? A: David Park, CEO, explained that while the LANXESS project remains important, the focus is currently on developing higher-grade resources in Southwest Arkansas and East Texas with well-funded partners. Andy Robinson, COO, added that the team is focused on the Southwest Arkansas project for commercialization.

Q: How wide is the net cast for potential off-take agreements, and is there a competitive race to secure customers? A: David Park, CEO, stated they started with about 40 potential counterparties, narrowing down to a few with whom they are in advanced discussions. He does not believe they are in a race with others to secure off-take, as there is robust demand for lithium carbonate in the 2028 and beyond timeframe.

Q: How will the learnings from Southwest Arkansas be applied to East Texas projects? A: Andrew Robinson, COO, noted that they plan to leverage relationships with vendors and partners developed in Southwest Arkansas to streamline and reduce costs for East Texas projects, aiming for quicker and more efficient project development.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.