Standard Lithium(US:SLI)2025-11-11 14:02Financial Data and Key Metrics Changes - For the third quarter ended September 30, 2025, the company reported a net loss of $6.1 million, compared to a loss of $4.8 million during the same quarter in 2024 [12] - General and administrative expenses increased by $0.3 million, primarily due to higher employee-related expenses as the company expands its team [12] - Share-based compensation expense rose by $0.9 million, reflecting a focus on aligning employee compensation with share performance [13] - The company ended the quarter with cash and working capital positions of $32.1 million and $29 million, respectively [14] Business Line Data and Key Metrics Changes - The Southwest Arkansas (SWA) project is expected to have an initial production capacity of 22,500 tons per annum of battery-quality lithium carbonate, with proven reserves of 447,000 LCE tons over a 20-year operating life [3] - The DFS for the SWA project indicates a 20.2% unlevered pre-tax IRR and competitive average operating costs of about $4,500 per ton [4] - The Franklin project in East Texas has an inferred resource report highlighting 2.2 million tons LCE of lithium at an average grade of 668 milligrams per liter [5] Market Data and Key Metrics Changes - The company closed an underwritten public offering of 29.9 million common shares at a price of $4.35 per share, generating gross proceeds of approximately $130 million [6] - The company received strong support from institutional investors, indicating confidence in its strategy and asset quality [6] Company Strategy and Development Direction - The company aims to reach production of over 100,000 tons of lithium chemicals per year in Texas through multiple projects [5] - The company is focused on securing project financing and customer offtake agreements, targeting approximately $1 billion in debt for the SWA project [11] - The company is positioned to play a leading role in developing a domestic lithium supply chain in the United States [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the critical milestones achieved in the third quarter and expects to provide updates on project financing and vendor selection [18] - The company is preparing for construction to commence shortly after reaching the final investment decision (FID) in early 2026, with first production targeted for the second half of 2028 [11] Other Important Information - The company appointed Michael Lutgren as General Counsel to strengthen its leadership team [6] - The company is working closely with the DOE on an environmental assessment required for a $225 million grant [10] Q&A Session Summary Question: How does the $40 million FID payment structure work? - The payment is triggered as soon as the JV board decides to take FID and move forward with the SWA or East Texas projects, with Equinor owing Standard Lithium $40 million upon FID approval [23] Question: If the FID is made and later changes, does the company still receive the $40 million? - Yes, the company would still receive the $40 million upfront as long as FID is taken, although it is unlikely the company would back out after making the decision [24]