Raymond James has commenced coverage on Standard Lithium (SLI, Financial), assigning it an Outperform rating and setting a price target of $2.75. Recognized as a pioneering entity in direct lithium extraction, Standard Lithium offers significant exposure to the lithium sector, despite its current development phase. According to the analyst, the company’s flagship project, in which it holds a 55% stake, is situated in southern Arkansas—a rapidly emerging hub for direct lithium extraction. This positions Standard Lithium strategically within the growing market. Investors are advised that this project, known as the South West Arkansas Project, underscores the firm's potential in the industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Standard Lithium Corp (SLI, Financial) is $3.20 with a high estimate of $3.20 and a low estimate of $3.20. The average target implies an upside of 17.22% from the current price of $2.73. More detailed estimate data can be found on the Standard Lithium Corp (SLI) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Standard Lithium Corp's (SLI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SLI Key Business Developments
Release Date: May 16, 2025
- Net Loss: USD 1.6 million for Q1 2025, compared to USD 7.7 million for Q1 2024.
- SG&A Decline: USD 1.1 million reduction, highlighting cost management and back-office cost sharing.
- Demo Plan Expenses: Decreased by USD 0.6 million, reflecting cost discipline and focus shift.
- Share-Based Compensation: Decreased by USD 1.3 million due to timing differences in rewards and grants.
- Fair Market Value Gain: USD 3 million gain from increased carrying value of investment in Aqualung carbon capture AS.
- Cash Position: USD 31.6 million at the end of the quarter.
- Working Capital: USD 31.3 million at the end of the quarter.
- Equity Investment in Aqualung: Increased to USD 5.4 million.
- DOE Grant: USD 225 million grant for the Southwest Arkansas project.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Standard Lithium Corp (SLI, Financial) reported a significant reduction in net loss, from USD7.7 million in Q1 2024 to USD1.6 million in Q1 2025, highlighting improved financial performance.
- The company achieved a lithium recovery rate of over 99% through its DLE technology pilot plant testing in Southwest Arkansas, indicating strong technological progress.
- SLI has a strong cash and working capital position of USD31.6 million and USD31.3 million, respectively, providing financial stability.
- The Southwest Arkansas project received a USD225 million grant from the DOE, enhancing the project's financial backing.
- SLI's Southwest Arkansas project was designated as a priority critical minerals project by the Trump administration, potentially facilitating regulatory processes and attracting global attention.
Negative Points
- SLI expects the sole funding contributions by its joint venture partner, Ecuador, to be exhausted during the second quarter, requiring SLI to fund its pro rata share of capital expenditures.
- The company has yet to finalize its Definitive Feasibility Study (DFS) and customer offtake agreements, which are crucial for securing project debt and financing arrangements.
- There is uncertainty regarding the capital spend profile between now and the final investment decision (FID), which could impact financial planning.
- The royalty rate proposal for the Southwest Arkansas project may face objections, potentially delaying the approval process.
- SLI's future funding needs may require additional equity or structured finance, which could dilute existing shareholders.
