Germany-based Lanxess operates three plants for the production of bromine products in El Dorado. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. On October 30, Standard Lithium Ltd. (TSXV: SLL) (OTCQX: STLHF) obtained a C$5 million five-year loan, at just 3% interest from strategic partner Lanxess. The technical and economic feasibility of the project is under examination. Standard Lithium installed a direct lithium extraction demonstration plant at Lanxess’ South Plant facility in southern Arkansas in December 2019. As can be seen, it's a fairly significant structure. All lithium carbonate, lithium hydroxide and lithium spodumene prices are available in our Battery Raw Materials Market Tracker. Details of pricing methodology changes or price corrections. The direct lithium extraction demonstration plant is expected to produce up to 150 tonnes of lithium a … That, or be a cornerstone order in future capital raises. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. Through recent work, the company determined the best methods for its requisite lithium recovery, concentration and leaching processes. With initial production at its Argentina project expected in 2022, Peter Epstein of Epstein Research believes the company could be an "excellent" bet when lithium prices rebound. It remains to be seen if Lanxess will just finalize a JV or simply could buy Standard Lithium outright, as it would own all IP as well in that case. Peter Epstein of Epstein Research outlines the latest from this firm operating in Nevada, which is set to release a PFS in the fourth quarter. Peter Epstein of Epstein Research provides an update on a company with a lithium project in Arkansas. An agreement with Glencore enabling advancement of recommissioning and expansion plans for the junior's cobalt refinery makes First Cobalt a good bet for investors, according to Peter Epstein of Epstein Research. If true, the company is pretty far along in having meaningfully de-risked the project. You can enter a maximum of 5 recipients. Standard Lithium said it paid an initial $3m reservation fee to Lanxess to secure access to the tail brine, with additional fees and obligations in the future subject to certain conditions. The bromine is extracted from the brine produced at the site, which also contains lithium. Southern brine plant at the Lanxess project in Arkansas. Standard Lithium would contribute rights and leases held in the Smackover Formation and make Lanxess a joint venture partner in the pilot plant Standard Lithium is building in Canada and then planning to move to south Arkansas, Mintak said. Given that Standard Lithium's (TSX-V:SLL) / (OTCQX:STLHF) JV project is well on its way to being fully funded with the technical and financial support of giant specialty chemicals conglomerate Lanxess, and given that a third-party PEA has demonstrated robust project economics, Standard Lithium is arguably more de-risked than the market is giving it credit for. The Demonstration Plant utilizes the Company’s proprietary LiSTR technology to selectively extract lithium from LANXESS’ tailbrine. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. This is on top of Lanxess' expected commitment to line up 100% of project financing. In the chart below, one can see that a sample of lithium producers is trading at an average EV to trailing 12-month revenue multiple of 7.5x. All rights reserved. Want to be the first to know about interesting, Standard Lithium Demo Plant Operating Soon, First Production in 2022, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX). Standard Lithium Remains on Course to Production in 24–30 Months Source: Peter Epstein for Streetwise Reports (08/29/2019). The Company’s flagship LANXESS Project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction from over 150,000 acres of permitted brine operations utilising the Company’s proprietary selective extraction technology. Note, the current share price is C$0.91. The waste water it usually sends back underground will instead first go through Standard Lithium’s extraction process co-located at a Lanxess production facility. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Although a run-rate of 100-150 tonnes LCE/year is not much by commercial standards, it's impressive as far as pilot plants go. 2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. The author is wholly responsible for the validity of the statements. At the time this interview was posted, Peter Epstein owned shares of Standard Lithium, and the Company was an advertiser on [ER]. Readers should take note of EBITDA margins among producers, averaging 29%. New results include long, high-grade polymetallic intervals. Get a sample report here. When fully commissioned, the DP will continuously process an input "tail-brine" flow of ~50 gallons per minute. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Germany-based Lanxess operates three plants for the production of bromine products in El Dorado. Compare up to five different prices over a selected period of time in Price Book. That's an annualized production rate of 100–150 tonnes of LCE. The Fastmarkets MB archives cover historical news and pricing data going back to 1997. Canada-based Standard Lithium Ltd. successfully completed the start-to-finish proof of concept of its lithium processing technology. Successful operation of the technology at pre-commercial continuous scale has directly extracted lithium from brine in Arkansas and produced a purified, concentrated intermediate product (LiCl solution) which has been converted to better than battery … Standard Lithium has paid an initial US$3,000,000 reservation fee to LANXESS to secure access to the tail brine, with additional fees and obligations in the future subject to certain conditions. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. Assuming the new warrants get exercised, the company would have roughly 97.5 million shares outstanding and would have raised a total of $8.75 millin. Im US-Bundesstaat Arkansas ist im März mit dem Partner Standard Lithium eine Pilotanlage zur Extraktion von hochreinem Lithium direkt aus Solen in Betrieb genommen worden. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions. About Standard Lithium Ltd. This month, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) is targeted to switch on a relatively large-scale, proof-of-concept lithium extraction Demonstration Plant in southern Arkansas. Resources: A New Gold Prospect + Manganese Trading + Li Extraction Technology, Source: Peter Epstein for Streetwise Reports (12/11/2019), Standard Lithium Arranges C$5 Million Convertible Loan Financing, Source: The Critical Investor for Streetwise Reports (11/05/2019), PGE Projects in Brownfields of Montana and Yukon Raise Expectations for Junior Miner, Source: Maurice Jackson for Streetwise Reports (10/29/2019), Standard Lithium in Final Stages of De-risking New Recovery Method; Giant JV Partner Could Fully Fund Capex When Successful, Source: The Critical Investor for Streetwise Reports (09/25/2019), First Cobalt, Last Man Standing in North American Cobalt Sector, Source: Peter Epstein for Streetwise Reports (09/05/2019), Cypress Development Makes Lithium Flow Sheet Enhancements, Source: Peter Epstein for Streetwise Reports (09/04/2019), Lithium Explorer Advances Nevada Project, To Publish Prefeasibility Study in Q4/19, Standard Lithium Remains on Course to Production in 24–30 Months, Source: Peter Epstein for Streetwise Reports (08/29/2019). It's a high-end product." As readers of my articles and interviews know, there are a number of lithium brine projects in Argentina and Chile. Although Standard Lithium is not yet in production and will never be a giant like SQM or Albemarle, one can imagine what an indicative valuation might look like. GM [recently] announced they were going to build a $2.3 billion factory in Ohio to make lithium batteries. Peter Epstein is the founder of Epstein Research. They have extensive and sophisticated sales networks to sell specialty chemical products. Standard Lithium said Tuesday that it has completed a successful start-up of its industrial-scale Direct Lithium Extraction Demonstration Plant at Lanxess’ South Plant facility near El Dorado. [ER] is not an expert in any company, industry sector or investment topic. By signing up to this free newsletter you agree to receive occasional emails from us informing you about our products and services. Recent developments on several of this North American explorer's prospects are discussed in an interview with Maurice Jackson of Proven and Probable. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Under the proposed terms of the joint venture, Lanxess would contribute lithium extraction rights and grant access to its existing infrastructure to the joint venture. As can be seen, the range of per-share values is wide; from C$1.30 to C$5.14. We're at the point where we're going to be the U.S. hub for it. Streetwise Reports Disclosure: LANXESS is therefore combining its business activities in this area to support a group wide initiative for e-mobility. Provides an update on a Pre-Feasibility Study top of Lanxess ' expected commitment to line up 100 % loss invested! Your Inbox our products and services 're doing sophisticated chemistry to produce a chemical that goes into.... 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