- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Diving deeper on Standard Lithium?
Posted on 5/9/24 at 7:13 am to ev247
Posted on 5/9/24 at 7:13 am to ev247
quote:
FeMike does the fact that they have announced this partnership before a Phase 1A partnership affect your prediction on if Phase 1A still happens or not?
I don't think the timing of this really impacts my thoughts on Phase 1A. I've been skeptical since my last call with them as to how much priority they are giving Phase 1A, though. Still wouldn't be surprised at all for it to get put on the back burner, although if I had to bet I'm on the side of more likely than not it breaks ground first.
Wonder if they pushed the royalties meeting so that they had the weight of Equinor at the table for when discussions resume.
3
Posted on 5/9/24 at 7:23 am to Fe_Mike
quote:
Wonder if they pushed the royalties meeting so that they had the weight of Equinor at the table for when discussions resume.
I was telling a buddy that yesterday who is also invested. With Exxon being the big dog at the discussion table now, SLI needs someone big at the table on their behalf to not get bullied into royalty oblivion by Exxon.
Posted on 5/9/24 at 7:32 am to Fe_Mike
Market has got to recognize the significance of this partnership soon.
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.
Now that obviously needs to be discounted and the real number is somewhere between; but this is no-joke, real deal news, in my opinion. Totally non-biased view of course.
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.
Now that obviously needs to be discounted and the real number is somewhere between; but this is no-joke, real deal news, in my opinion. Totally non-biased view of course.
Posted on 5/9/24 at 7:46 am to Fe_Mike
It makes sense that they wanted to wait for Equinor to be in the royalty process with them. Seems less likely now that Exxon could bully SLI through higher royalty tolerance. I’m on the lookout for this month’s hearing applications and will post if ours appears.
Just finished reading the new investor presentation.
Biggest takeaway is that they expect to make FID on SWA project in 2025. Back to the royalty so Phase 1A can have its FID sooner. Presentation reminded me of when Mintak said that Phase 1A has worse economics because it won’t benefit from economies of scale. Maybe SLI can now leverage relationships/scale from the Equinor partnership to improve Phase 1A’s economics as well?
Presentation also says they have an office in Austin Tx now.
Just finished reading the new investor presentation.
Biggest takeaway is that they expect to make FID on SWA project in 2025. Back to the royalty so Phase 1A can have its FID sooner. Presentation reminded me of when Mintak said that Phase 1A has worse economics because it won’t benefit from economies of scale. Maybe SLI can now leverage relationships/scale from the Equinor partnership to improve Phase 1A’s economics as well?
Presentation also says they have an office in Austin Tx now.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News