Standard Lithium (SLI) Q4 2024 earnings summary

Executive summary

• Secured a strategic partnership with Equinor, which acquired a 45% interest in key projects for up to $160 million, validating project quality and strengthening financial and technical support without shareholder dilution.

• Received a $225 million conditional grant from the U.S. Department of Energy to support construction of the Southwest Arkansas project's Central Processing Facility.

• Advanced project de-risking through pre-feasibility studies, land acquisition, and successful demonstration of direct lithium extraction (DLE) technology.

• Strengthened executive team with key hires, including the appointment of David Park as CEO and Director, and new Chief Development Officer and CFO.

Financial highlights

• Reported net income before taxes of $212.8 million for Q4 and $182.5 million for the full year, driven by gains from selling minority interests in projects to Equinor.

• Retained 55% interest in Southwest Arkansas and East Texas projects, selling 45% to Equinor for gross and net consideration of $160 million and $133 million, respectively.

• Ended the year with a working capital balance of approximately CAD 40 million and cash of CAD 52.9 million as of June 30, 2024.

• No term or revolving debt obligations as of June 30, 2024.

• Raised C$2.8 million and US$13.3 million from share issuances during the fiscal year; no issuances since April 10, 2024.

Outlook and guidance

• Focused on advancing Southwest Arkansas through DFS and FEED, targeting 45,000 tpa lithium carbonate output in two phases with production expected to begin in 2027.

• Progressing East Texas towards a maiden resource statement and preliminary economic assessment.

• Advancement of Phase 1A project at LANXESS South Plant depends on commercial discussions and finalization of Arkansas lithium royalty.

• Pursuing customer offtake agreements and project-level debt to finalize capital formation, prioritizing lowest cost of capital options.