Standard Lithium Reports Fiscal First Quarter 2023 Results, Achieves Key Project Milestones Towards Commercialization
November 10 2022 - 07:05AM
Standard Lithium Ltd. (“
Standard
Lithium” or the “
Company”) (TSXV: SLI)
(NYSE: SLI) (FRA: S5L), a leading pre-commercial lithium project
development company, today reported its financial and operating
results for the fiscal first quarter ended September 30, 2022.
“Q1 was an important quarter for Standard
Lithium, in which we advanced our development strategy in
meaningful ways – and have continued this momentum into the current
quarter,” said Robert Mintak, Chief Executive Officer and Director.
“We achieved milestones, the most significant of which was awarding
the Front-End Engineering and Design (FEED) and Definitive
Feasibility Study (DFS) for our first commercial lithium plant.
That work is successfully underway, with trade-off studies being
completed, and the FEED and DFS for Phase 1A on schedule for
delivery in the first half of 2023 and will be summarized in a NI
43-101 DFS report.”
Mintak continued, “We also added key personnel
to the management team and to the workforce at our Arkansas
facility, a team that I am proud to report now numbers 30 highly
skilled operators, technicians, and engineers. We successfully
commissioned a first-of-its-kind chloride-to-hydroxide conversion
pilot plant in October. In November, we commenced a significant
resource expansion program that includes re-drilling an existing
production well into the deeper Smackover Formation at a location
west of our South-West Arkansas Project. Additionally, we also
received Notices of Allowance for Standard Lithium’s first two U.S.
patent applications.”
“The Company has had meaningful dialogue and
hosted a number of site visits with groups over the past several
months and we are evaluating potential strategic partnerships and
supply agreements that will support the further development of our
projects,” concluded Mintak. “These initiatives, our continuing
momentum toward key milestones, and our strong cash position will
allow us to advance our commercial development strategy with
confidence.”
HIGHLIGHTS OF THE FIRST FISCAL FIRST
QUARTER OF 2023 ENDED SEPTEMBER 30, 2022
-
Strong Balance Sheet - As of September 30, 2022,
the Company’s cash on hand totaled $124 million and it had a
working capital surplus of $121 million.
-
FEED and DFS Awarded - On September 7, 2022, the
Company announced that it had completed a competitive selection
process for the FEED and DFS for the first commercial lithium
project being developed at the LANXESS Property Project, and
awarded the contract to OPD LLC, a Koch-owned business based in
Katy, Texas.
NOTABLE EVENTS SUBSEQUENT TO THE THREE
MONTHS ENDED SEPTEMBER 30, 2022
-
Installed First-of-its-kind Chloride-to-hydroxide
Conversion Pilot Plant - The Company has successfully
commissioned a first-of-its-kind chloride-to-hydroxide conversion
pilot plant. The plant was installed at the LANXESS Property
Project and operates as a self-contained unit, taking the lithium
chloride feed produced by the existing Direct Lithium Extraction
(DLE) Demonstration Plant and converting this feed directly into a
lithium hydroxide solution using a novel ion-exchange process. The
successful installation and commissioning of this pilot plan
demonstrates the Company’s ability to use novel technological
solutions to build a new generation of lithium plants in North
America.
-
Received Notices of Allowance for First Two U.S. Patent
Applications - The United States Patent and Trademark
Office (“USPTO”) has issued Notices of Allowance for Standard
Lithium’s first two U.S. patent applications; serial no.16/410,523
and serial no. 16/224/463, both titled “Process for Recovering
Lithium from Brines”, a novel and proprietary technique for
continuous DLE from lithium brines. These U.S. patent applications
are two of the three pending U.S. patent applications for elements
of Standard Lithium’s innovative DLE processes. A Notice of
Allowance is issued by the USPTO after examination of a patent
application and determination that a patent should be granted from
the application. This notice provides continued affirmation of
Standard Lithium’s proprietary lithium extraction technology, and
the Company anticipates the formal registration of these patents
will be issued in the coming months.
-
Commenced Drilling Work for Resource Expansion -
Standard Lithium conducted an extensive geological, geochemical and
geophysical review of large regions of the Smackover Formation with
a focus on significantly expanding the Company’s resource holdings.
The Company and its contractors are currently re-drilling an
existing production well deeper into the Smackover Formation, which
is located west of the Company’s South West Arkansas Project.
All filings mentioned in this release are
available for review on the Company’s website and SEDAR profile
at www.sedar.com. All amounts are in Canadian dollars unless
otherwise indicated.
CONSOLIDATED FINANCIAL
STATEMENTS
The Company’s unaudited interim financial
statements and management's discussion and analysis for the three
months ended September 30, 2022, are available on the Company's
website at https://www.standardlithium.com/, and under the
Company’s profiles on SEDAR and EDGAR.
About Standard Lithium Ltd.
Standard Lithium is a leading pre-commercial
lithium development company with a portfolio of projects in
process. The Company’s flagship projects, the LANXESS Property
Project and the South-West Arkansas Project, are located in
southern Arkansas near the Louisiana state border. The Company is
focused on the evaluation and testing of commercial lithium
extraction and purification from brine sourced from approximately
180,000 acres of unitized leases across these two projects. The
Company operates a first-of-a-kind industrial-scale Direct Lithium
Extraction (DLE) Demonstration Plant at the LANXESS Property
Project. The scalable, environmentally friendly process eliminates
the use of evaporation ponds, reduces processing time from months
to hours and greatly increases the effective recovery of lithium. A
Definitive Feasibility Study (DFS) and Front-End Engineering Study
(FEED) for Phase 1A of the LANXESS Property Project commenced in
September 2022. A Preliminary Feasibility Study (PFS) of the
South-West Arkansas Project commenced in May 2022. The Company is
also pursuing the resource development of approximately 45,000
acres of mineral leases located in the Mojave Desert in San
Bernardino County, California.
Standard Lithium is jointly listed on the TSX
Venture Exchange and the NYSE American under the trading symbol
“SLI”; and on the Frankfurt Stock Exchange under the symbol “S5L”.
Please visit the Company’s website
at https://www.standardlithium.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release may contain certain
“Forward-Looking Statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. When used in this news
release, the words “anticipate”, “believe”, “estimate”, “expect”,
“target, “plan”, “forecast”, “may”, “schedule” and other similar
words or expressions identify forward-looking statements or
information. These forward-looking statements or information may
relate to the FEED and DFS delivery schedule, patent applications,
chloride-to-hydroxide conversion pilot plant, future prices of
commodities, accuracy of mineral or resource exploration and
drilling activity, reserves or resources, regulatory or government
requirements or approvals, the reliability of third party
information, continued access to mineral properties or
infrastructure, fluctuations in the market for lithium and its
derivatives, changes in exploration costs and government regulation
in Canada and the United States, and other factors or information.
Such statements represent the Company’s current views with respect
to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social risks, contingencies and
uncertainties. Many factors, both known and unknown, could cause
results, performance or achievements to be materially different
from the results, performance or achievements that are or may be
expressed or implied by such forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update these forward-looking statements or information to reflect
changes in assumptions or changes in circumstances or any other
events affecting such statements and information other than as
required by applicable laws, rules and regulations.
For further information contact:
LHA Investor Relations
David Barnard
+1 415-433-3777
standardlithium@lhai.com
info@standardlithium.com
Twitter: @standardlithium
LinkedIn: https://www.linkedin.com/company/standard-lithium/
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