Standard Lithium Ltd. (NASDAQ: SLI) stock surged by 3.87% at last close while the SLI stock price gains by 8.68% in the pre-market trading session. Standard Lithium is a lithium technology and development business with a unique approach. The company’s best-known project is in southern Arkansas, where it is evaluating the economic feasibility of lithium extraction from approximately 150,000 acres of authorized brine activities.
SLI stock’ Significant Development
Standard Lithium Ltd. has received favorable preliminary economic assessment (PEA) findings for its South-West Arkansas (SWA) Lithium Project.
Highlights:
- At an 8% discount rate and a 40.5 percent IRR, the pre-tax NPV is US$2.83 billion.
- At an 8% discount rate and a 32.1 percent IRR, the after-tax NPV is US$1.97 billion.
- 30,000 tonnes of battery-quality lithium hydroxide monohydrate produced each year over a 20-year mine life (LHM).
- Operating expenses for battery-grade lithium hydroxide are $2,599 per tonne.
- Total CAPEX is estimated to be $870 million by AACE Class 5, with a cautious 25% direct capital cost contingency.
- The PEA lithium brine resource for the SW Arkansas Lithium Project has been revised to take into account the possible unitized area of production, resulting in an enhanced total (global) in-situ resource of 1,195,000 tonnes Lithium Carbonate Equivalent (LCE) at the Inferred Category.
Dr. Andy Robinson, President, and COO of Standard Lithium stated,
Standard Lithium has reached a pivotal point with the completion of this PEA for the SWA Lithium Project, as it starts to highlight the tremendous potential that exists within the Smackover Formation in southwestern Arkansas. This PEA is the result of a collaborative effort, and they owe a heartfelt thanks to all of the team members who offered their professional skills to this project.
The potential to provide this PEA and highlight these appealing project characteristics is based on the tens of thousands of hours worked by the whole Standard Lithium team establishing and derisking their lithium extraction process at pre-commercial scales over the last few years. They may expect to deploy it on their other assets in the region in the future because of our large-scale technical proof. The PEA’s favorable perspective economics support the Company’s ongoing efforts to de-risk and develop the SWA Project in tandem with its primary objective, which is to create the first new lithium production plant in North America at the Lanxess facilities.
