re: Diving deeper on Standard Lithium?

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Absolute worst case scenario, SLI just got a $160M investment for 45% of the company. That's a $350 mil valuation which should put the share price over $2. So if you're reading this in the most pessimistic way possible, share price should still be 60% higher. In reality, SLI just got $160M (with $30M cash up front) to fund near term operations and development that is no strings attached. No repayment, no interest, no nothing. It's a good faith down payment. Equinor will fund 45% of the capex for SWA Ark ($600M) and 45% of the capex for East TX (who knows, probably represents north of $1B extremely conservatively). That basically represents a back of the napkin $2B investment for 45% of the company assuming success, or a valuation of 4.4 billion. $25/share.

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For reference, SLI’s published implied valuation of the deal was $300M

Just tried to figure out where our discrepancy was and it looks like SLI’s valuation discounts the $60M for the workplan as those are project payments. SLI only owns 55% of the projects so technically only realize $33M of the $60M commitment. So SLI will see $133M from this deal, not $160. Pre-FID.