Q3 2025 Standard Lithium Ltd Earnings Call

Event any background noise. After the Speakers' remarks, there will be a brief question and answer session. If you would like to ask a question. Please raise your hand, if you have dialed in to today's call. Please press star nine to raise your hand and star six two on mute I.

I will now hand, the conference over to Daniel Rosen, Vice President of Investor Relations and strategy for standard lithium Daniel Please go ahead.

Thank you and welcome everyone I'm joined today by David Park, our CEO and director, Andy Robinson, President CFO, and director Salaga Moody, Chief Financial Officer, and Mike Berman Chief Development Officer.

Before we begin I would like to start with a reminder, that some of the statements made during our call today, including any related to company performance expectations and timing of projects may constitute forward looking statements. Please note the cautionary language about forward looking statements contained in our press release, which also applies to this call.

I will now turn the call over to David.

Thanks, Dan.

David Park: This report, for Standard Lithium's first of three planned projects in the East Texas region of the Smackover, highlights the size and quality of its brine position, with some of the highest reported lithium in brine grades in all of North America. It includes 2.2 million tons LCE of lithium at an average grade of 668 milligrams per liter, as well as 15.4 million tons of potash, a newly added mineral to the USGS 2025 draft critical mineral list, and 2.6 million tons of bromide. It provides a strong foundation for future scalable production, and it marks a key step toward the ultimate goal of reaching production of over 100,000 tons of lithium chemicals per year in Texas through multiple projects. As we said, Standard Lithium is more than a single project company.

I appreciate everyone for joining us today.

We had a very busy and productive third quarter as we successfully executed on multiple key milestones that we had set out to achieve.

We completed a definitive feasibility study for our southwest Arkansas project, highlighting both the attractiveness and cost competitiveness of our first commercial project being developed alongside our smack over lithium JV partner Ecuador.

The SWA project is expected to have initial production capacity of 22500 tonnes per annum of battery quality lithium carbonate producing 447000 LTE tons of proven reserves over its modeled 20 year operating life.

Or 38% of the $1 2 million measured and indicated resource.

Average lithium concentrations and Brian are expected to begin at 549 milligrams per liter and produced at an average lithium concentration of 481 milligrams per liter over the period.

David Park: We believe East Texas to be a meaningfully underappreciated part of our portfolio, and we expect this report to be a key step towards achieving more appropriate recognition for this world-class asset. Following third quarter close, in October, we closed an underwritten public offering of 29.9 million common shares at a price of $4.35 per share for gross proceeds of approximately $130 million. We received strong support from institutional investors, highlighted by an oversubscribed order book and our ability to upsize the transaction by $10 million, which underscores the confidence in our strategy and the quality of our assets. This fundraise was an important milestone for the company, and a key de-risking step that will put us in a strong position to reach FID at SWA. Lastly, we expanded our leadership team with the appointment of Michael Lutkring as General Counsel.

Demonstrating what we believe to be very small declines in lithium concentration and resultant production over the projected operating life.

The DFS is highlighted by a 22% unlevered pretax IRR with competitive average operating cost of about $4500 per ton all in costs of approximately 5900 per ton over the operating life in all in class III Capex estimate of one.

$4 5 billion, which includes a 12, 3% contingency.

The project is well engineered defined and ready to progress to a final investment decision. Following a few remaining milestones that we will discuss <unk>.

Instruction is expected to commence in 2026 shortly after reaching.

With first production targeted in 2028.

Average lithium concentrations in brine are expected to begin at, 549 milligrams per liter and produce at an average lithium concentration of 481, milligrams per liter over the period.

We also released the maiden inferred resource report for our Franklin project in East, Texas.

David Park: This addition to the leadership team is critical as we strengthen our capabilities, bring further expertise in-house, and continue our growth and development as a company. To provide more detail on key project-related developments and deliverables ahead, I'll pass it over to Andy.

This report for smack over lithium first of three planned projects in East, Texas region of the smack over highlights the size and quality of its Brian position.

Demonstrating what we believe to be very small declines in, lithium concentration, and resultant production over the projected, operating life.

With some of the highest reported lithium in Brian grades in all of North America.

Andy Robinson: Thanks, David. The release of two technical reports since our last earnings call is a tremendous achievement and a testament to the hard work and dedication of our joint venture project teams over the last few years. For the Franklin project and East Texas more broadly, we intend to continue to improve the definition of our resource positions through additional drilling and process test work in the coming quarters. Our general goals for 2026 are to move towards a preliminary feasibility study for the Franklin project, demonstrate the project economics of that world-class resource, work on maiden-inferred resource reports for our other potential projects in the area, and continue to expand our leasehold footprint in East Texas. However, my comments today will be more focused on the SWA project.

It includes $2 2 million tonnes LTE of lithium at an average grade of 668 milligrams per liter.

As well as $15 4 million tonnes of potash.

The DFS is highlighted by a 20.2%. Unlevered pre-tax irr with competitive average, operating costs of about 4,500 dollars per ton all-in costs of approximately 5,900 per ton over the operating life and all-in class 3 capex estimate of 1.45 billion which includes a 12.3% contingency.

Our newly added mineral to the U S. G. S 2025 draft critical mineral west.

The project is, well, engineered to find and ready to progress to a final investment decision, following a few remaining milestones that we will discuss.

And $2 6 million tonnes of bromine.

It provides a strong foundation for future scalable production and it marks a key step towards the ultimate goal of reaching production of over 100000 tons of lithium chemicals per year in Texas through multiple projects.

Construction is expected to commence in 2026, shortly after reaching FID, with first production targeted in 2028.

We also released a maiden inferred resource report for our Franklin project in East Texas.

As we've said.

Lithium is more than a single project company.

Andy Robinson: We've successfully completed a number of critical milestones that we set out to achieve as we push closer to reaching FID. This includes completion of the final regulatory approval required from the Arkansas Oil and Gas Commission, which we obtained about two weeks ago. We received unanimous approval for our integration application for the Reynolds brine unit, where the initial commercial phase of the Southwest Arkansas project is planned to be developed. Integration is a formal process which combines any remaining non-leased mineral interests into an approved brine production unit, and is a key de-risking step for any future production from that unit. Looking forward, the key remaining milestones between here and FID relate to environmental, construction, funding, and commercial items. On environmental, as required by our $225 million grant from the DOE, we continue to work closely with the DOE on completion of an environmental assessment for the project.

We believe east, Texas to be a meaningfully underappreciated part of our portfolio and we expect this report to be a key step towards achieving more appropriate recognition for this world class asset.

This report for Smackover lithium's. First of 3, plan projects in East Texas, region of the Smackover highlights, the size and quality of its brine position.

with some of the highest reported lithium in brine grades in all of North America,

Following third quarter close.

In October we closed an underwritten public offering of $29 9 million common shares at a price of $4 35 per share for gross proceeds of approximately $130 million.

It includes 2.2 million tons LCE of lithium at an average grade of 668 milligrams per liter.

As well as 15.4 million tons of potash.

A newly added mineral to the USGS 2025 draft critical mineral list.

We received strong support from institutional investors highlighted by an oversubscribed order book and our ability to upsize the transaction by $10 million.

And 2.6 million tons of bromide.

Which underscores the confidence in our strategy and our quality of our assets.

This fund raise was an important milestone for the company and a key de risking step that will put us in a strong position to reach FID.

It provides a strong foundation for future scalable production, and it marks a key step toward the ultimate goal of reaching production of over 100,000 pounds of lithium chemicals per year in Texas, through multiple projects.

as we've said,

Standard lithium is more than a single project company.

Andy Robinson: The assessment has been drafted and submitted for review with our designation as a FAST-41 transparency project under the federal permitting dashboard. We expect to be in public comment period later this month, and the overall estimated completion date is currently around year-end. With respect to construction, we are in the final stages of selection and contracting with an EPC who will lead the building of our central processing facility, as well as a separate EPCM contractor who will lead the development of our well field. We intend to have these finalized prior to year-end. Turning to the ongoing dual-track project financing and customer offtake processes, we've made significant progress in advancing these negotiations alongside our experienced financial advisors.

At SWM.

Lastly, we expanded our leadership team with the appointment of Michael luck, Greg as General Counsel.

This addition to the leadership team is critical as we strengthen our capabilities.

We believe East Texas to be a meaningfully underappreciated part of our portfolio. And we expect this report to be a key step towards achieving more appropriate recognition for this world class assets.

Following third quarter close.

Bring further expertise in house and continue our growth and development as a company.

To provide more detail on key project related developments and deliverables ahead I'll pass it over to Andy.

Thanks, David.

In October, we closed an underwritten public offering of 29.9 million common shares at a price of $4.35 per share for gross proceeds of approximately $130 million.

The release of two technical reports since our last earnings call. There is a tremendous achievement and a testament to the hard work and dedication of our joint venture project teams over the last few years.

Franklin project in East, Texas, more broadly, we intend to continue to improve the definition of a resource positions through additional drilling and process test work in the coming quarters.

Andy Robinson: We look forward to being able to provide an update in short order on the leading potential debt financiers that have expressed support for our project, providing confidence in our ability to secure the approximately $1 billion in debt that we are targeting to build the project. Additionally, we have allocated a material portion of our projected annual production volumes to parties where customer offtake is steadily progressing towards binding contracts. We expect to have many of these key deliverables squared away before year-end, with a formal FID in early 2026. A parallel execution of multiple work streams means that we are aiming to start construction very shortly after FID, with a goal of first production in the second half of 2028. Now, I'll turn it over to Salah to discuss our financial results.

We received strong support from institutional investors highlighted by an oversubscribed order book, and our ability to upsize the transaction by 10 million dollars, which underscores the confidence in our strategy and a quality of our assets.

General goals for 2026.

Towards the preliminary feasibility study for the Franklin project demonstrates the project economics that World class results.

This fundraiser was an important milestone for the company and a keyed risking step that will put us in a strong position to reach FID at SWA.

Work on maiden inferred resource reports for our other potential projects in the area and to continue to expand our leasehold footprint in East Texas.

Lastly, we expanded our leadership team with the appointment of Michael Ling as General Counsel.

This addition to the leadership team is critical as we strengthen our capabilities.

My comments today will be more focused on the SWA project.

Bring further expertise, in-house and continue our growth and development as a company.

We successfully completed a number of critical milestones that we set out to achieve as we push closer to reaching our saidi.

To provide more detail on key project-related developments in deliverables ahead, I'll pass it over to Andy.

This includes completion of the final regulatory approval required from the Arkansas oil and gas Commission, which we obtained about two weeks ago. We received unanimous approval for integration obligation for the rentals Brian unit.

Salah Gamoudi: Thank you, Andy. To begin, I want to clarify that all numerical financial references that I will be making are in US dollars. For the third quarter ended 30 September 2025, we reported a net loss of $6.1 million as compared to a loss of $4.8 million during the quarter ended 30 September 2024. For the quarter, as compared to the quarter ended 30 September 2024, G&A increased by $0.3 million, driven primarily by increases in employee-related expenses associated with expanding our team as we continue to mature and transition from early-stage project development and de-risking activities towards construction and eventual production. Share-based compensation expense increased by $0.9 million period over period, reflecting our increased focus on structuring incentive plans to more closely align employee compensation with share performance and value creation.

Thanks David, the release of 2 technical reports. Since our last earnings call is a tremendous achievement and testament, to the hard work and dedication of our joint venture project teams over the last few years.

The initial commercial phase of the SWA project is planned to be developed.

Integration of formal process, which combines any remaining non lease mineral interests into unapproved, Brian production unit and is a key derisking step for any future production from that unit.

For the Franklin project and East Texas, more broadly, we intend to continue to improve the definition of our resource positions through additional drilling and process testing work in the coming quarters.

Looking forward the key remaining milestones between here.

Relate to environmental construction funding and commercial items.

Our general goals for 2026 are to move towards a preliminary feasibility study for the Franklin project and demonstrate the project economics that will class resource.

On environmental as required by $225 million grant from the Doe.

Work on Maiden inferred resource reports for our other potential projects in the area and to continue to expand our lease, hold footprint in East Texas.

We continue to work closely with the Doe on completion of an environmental assessment for the project assessment has been drafted and submitted for review with our designation as a fast 41 transparency project under the federal <unk> dashboard.

We successfully completed a number of critical Milestones that we set out to achieve as we push closer to reaching fid.

We expect to be in public comment period later this month and the overall estimated completion date is currently around year end.

With respect to construction.

We're in the final stages of selection and contracting with an EPC, who will lead the building of a central processing facility as well as a separate EPC contractor, who will lead the development of our well field. We intend to have these finalized prior to year end.

Salah Gamoudi: Below operating expenses on the income statement, we recorded a higher investment loss from joint ventures of $0.9 million for the quarter versus $0.4 million in the prior period. This increase reflects expanded operational activity at the Smackover Lithium J.V. level and related expenses in 2025 as we advanced towards the release of our two technical reports. We also recorded a $0.5 million gain on the fair value of our contingent FID payments to be received by Standard Lithium from our J.V. partner, Equinor, should we reach a positive FID at our SWA and/or East Texas projects. As we continue to achieve milestones and approach target FID decision dates, the value of our contingent FID payment assets have increased, as reflected by the gain. Moving on to our balance sheet, we ended the quarter with strong cash and working capital positions of $32.1 million and $29 million, respectively.

This includes completion of the final regulatory approval required from the Arkansas oil and gas commission. Which we obtained about 2 weeks ago, we received unanimous approval for our integration application. For the Reynolds brine unit where the initial commercial phase of the SWA project is planned to be developed.

Turning to the ongoing yield track project financing and customer offtake processes. We've made significant progress in advancing these negotiations alongside our experienced financial advisors, we look forward to being able to provide an update in short order on the leading potential debt financings that have expressed support for a project and <unk>.

Integration is formal process, which combines any remaining non-lease, mineral interests into an approved, brine production unit and is a key de-risking step for any future production from that unit.

Abiding confidence in our ability to secure the approximately $1 billion in debt that we are targeting to build the project.

Additionally, we have allocated a material portion of our projected annual production volumes to parties were customer offtake is steadily progressing towards binding contracts. We expect to have many of these key deliverables squared away before year end with a formal saidi and early 2026.

Looking forward, the key remaining milestones between here and FID relate to environmental construction funding and commercial items on environmental as required by our $225 million grant from the DOE. We continue to work closely with the DOE on the completion of an environmental assessment for the project. The assessment has been drafted and submitted for review, with our designation as a FAST-41 transparency project under the Federal Permitting Dashboard.

We expect to be in public comment period. Later this month and the overall estimated completion date is currently around year end.

A parallel execution of multiple work streams means that we are aiming to start construction very shortly after.

Salah Gamoudi: This cash position does not include the follow-on offering we completed in October, which generated net proceeds of $122.2 million. As a reminder, the sole funding requirements by Equinor into the J.V.s as part of the original agreement were exhausted during the second quarter of this year, with Standard Lithium and Equinor now making their own respective capital contributions based on a 55-45% ownership split. As a result, Standard Lithium made J.V. capital contributions of approximately $11.2 million during the third quarter, bringing the total year-to-date up to $19.5 million, as reflected on our cash flow statement. Despite this contribution, through active cost management, cost sharing, cost recoveries through our DOE grant receipts, and liquidity provided through prudent use of our ATM program, we were able to maintain our cash position during the quarter.

With a goal of first production in the second half of 2028.

With respect to construction, we are in the final stages of selection and Contracting with an EPC who will lead the building of our central processing facility, as well as a separate epcm contractor, who will lead the development of our wellfield. We intend to have these finalized prior to year end.

Now I'll turn it over to <unk> to discuss our financial results.

Thank you Andy to begin I want to clarify that all numerical financial references that I'll be making are in U S dollars.

For the third quarter ended September 32025, we reported a net loss of $6 1 million as compared to a loss of $4 8 million during the quarter ended September 32024.

Turning to the ongoing dual track project financing and customer offtake processes. We've made significant progress in advancing these negotiations alongside our experienced financial advisors we look forward to being able to provide an update in short order on the leading potential debt, financiers that have expressed support for our project and providing confidence in our ability to secure the approximately 1 billion dollars in debt. That we are targeting to build the project.

For the quarter as compared to the quarter ended September 32024.

G&A increased by $3 million, driven primarily by increases in employee related expenses.

Associated with expanding our team as we continue to mature and transitioned from early stage project development and derisking activities towards construction and eventual production.

Additionally, we've allocated a material portion of our projector's annual production volumes to parties where customer offtake is steadily progressing towards binding contracts. We expect to have many of these key deliverables squared away before year-end, with a formal FID in early 2026.

Salah Gamoudi: This was further bolstered by the follow-on offering last month, which helped support our expected equity contribution into the SWA project at FID, and continuing to progress development work in East Texas. Securing an attractive and comprehensive project financing package is a critical component of the final investment decision for SWA. The $1.45 billion of project CapEx is expected to be financed by a combination of senior secured project debt, the $225 million grant from the DOE, as well as respective funding contributions from Standard Lithium and Equinor. The J.V. is targeting approximately $1 billion in total project debt, supported by leading export credit agencies and commercial lenders. The remaining contribution required by Standard Lithium will be reduced by the $40 million FID milestone payment due from Equinor, as well as proceeds from the recent equity raise. I will now turn it back over to David for closing remarks.

Share based compensation expense increased by <unk> 9 million period over period, reflecting our increased focus on structuring incentive plans to more closely aligned employee compensation with share performance and value creation.

A parallel execution of multiple work streams means that we are aiming to start construction very shortly after FID, but the goal is first production in the second half of 2028. Now, I'll turn it over to Salah to discuss our financial results.

Below operating expenses on the income statement, we recorded a higher investment loss from joint ventures of <unk> 9 million for the quarter versus <unk> 4 million in the prior period.

Thank you, Andy to begin. I want to clarify that all numerical Financial references, that I will be making are in US dollars.

This increase reflects expanded operational activity at the smack over lithium JV level and related expenses in 2025, as we advanced towards the release of our two technical reports.

For the third quarter ended September 30, 2025, we reported a net loss of $6.1 million, as compared to a loss of $4.8 million during the quarter ended September 30, 2024.

For the quarter as compared to the quarter ended, September 30th 2024.

We also recorded $8 $5 million gain on the fair value of our contingent payments to be received by standard lithium from our JV partner Ecuador.

GNA increased by 0.3 million driven, primarily by increases in employee related expenses.

Should we reach a positive.

At our SWA <unk> East, Texas projects.

Associated with expanding our team as we continue to mature and transition from early stage project development, and de-risking activities towards construction and eventual production.

As we continue to achieve milestones and approach targeting FID decision dates.

The value of our contingent.

David Park: Thanks, Salah. On a final note, I wanted to share that we recently played a leading corporate role in organizing the Arkansas Lithium Innovation Summit that took place in Little Rock two weeks ago. The event was highlighted by a strong keynote address from Arkansas Governor Sarah Huckabee Sanders. The excitement around developing a domestic lithium upstream and midstream supply chain centered around the Smackover formation was remarkable. Standard Lithium continues to be extremely well-positioned with a portfolio of high-quality, scalable assets, and we're excited by the prospect of being a domestic champion for securing critical minerals production in the United States.

<unk> assets have increased as reflected by the game.

Moving on to our balance sheet, we ended the quarter with strong cash and working capital positions of $32 1 million and $29 million respectively.

Share-based compensation expense increased by 0.9 million period over period reflecting our increased focus on structuring incentive plans to more closely align employee compensation with share performance and value creation.

This cash position does not include the follow on offering we completed in October which generated net proceeds of $122 2 million.

As a reminder, the sole funding requirements by Ecuador into the JV as part of the original agreement were exhausted during the second quarter of this year with standard lithium in Ecuador, now, making their own respective capital contributions based on a 50, 545% ownership split.

Below operating expenses on the income statement, we recorded a higher investment loss from joint. Ventures of 0.9 million for the quarter versus 0.4 million in the prior period. This increase reflects expanded operational activity at the Smackover lithium JV level and related expenses in 2025 as we advance towards the release of our 2. Technical reports.

We also recorded a 0.5 million gain on the fair value of our contingent. FID payments to be received by standard lithium from our JV partner equinor.

As a result standard lithium made JV capital contributions of approximately $11 2 million during the third quarter, bringing the total year to date up to $19 5 million is reflected on our cash flow statement.

David Park: We're highly encouraged by the critical milestones we delivered in the third quarter, and we expect to provide multiple updates in the coming months as we seek to conclude our ongoing project financing and customer offtake processes, finalize selection of our key SWA project vendors, and approve FID before moving to construction at SWA in 2026. Thanks again for joining us today. Operator, back to you for questions.

Should be reached a positive. FID at our SWA Andor East Texas projects

As we continue to achieve milestones and approach Target, FID decision dates.

Despite this contribution through active cost management cost sharing cost recoveries through our Doe grant receipts and liquidity provided through prudent use of our ATM program, we were able to maintain our cash position during the quarter.

The value of our contingent FID payment assets has increased, as reflected by the gain.

Moving on to our balance sheet, we ended the quarter with strong cash and working capital positions of 32.1 million and 29 million respectively.

This was further bolstered by the follow on offering last month, which helped support our expected equity contribution into the SWA project at <unk> and continuing to progress development work in East Texas.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please stand by and wait a few moments while we compile the Q&A roster. Your first question comes from the line of Joseph Rieger with Roth Capital. Joseph, your line is unmuted. You may now go ahead.

This cash position does not include the following on offering. We completed in October which generated net proceeds of 122.2 million

Securing an attractive and comprehensive project financing package is a critical component of the final investment decision for us to do that.

145 billion of project Capex is expected to be financed by a combination of senior secured project debt the $225 million ramp in the Dod as.

Their own respective capital contributions, based on a 55% to 45% ownership split.

As well as respective funding contributions from standard lithium in Ecuador.

Joseph Rieger: Hey, guys. Thanks for taking the questions. Just one quick thing. On the FID payment, the $40 million, how does that work from a structure standpoint? Is it as soon as you make the FID decision, it triggers the $40 million payment, or is it part of as the funds go into the J.V., they just contribute an extra $40 million?

The JV is targeting approximately $1 billion in total project that supported by leading export credit agencies and commercial lenders. The remaining contribution required by standard lithium will be reduced by the $40 million milestone payment due from Ecuador as well as proceeds from the recent equity raise I will.

As a result standard lithium made JB Capital contributions of approximately 11.2 million during the third quarter. Bringing the total year to date up to 19.5 million as reflected on our cash flow statement.

Despite this contribution.

Through active cost management cost, sharing cost. Recoveries through our doe Grant receipts and liquidity provided through prudent, use of our ATM program. We were able to maintain our cash position during the quarter.

Now turn it back over to David for closing remarks.

Thanks, a lot on a final note I wanted to share that we recently played a leading corporate role in organizing the Arkansas lithium innovation summit that took place in little rock two weeks ago.

David Park: Hi, Judge. This is Salah, I'm going to take that question. As soon as the J.V. board between us and Equinor decides to take FID and move forward at Southwest Arkansas, or for that matter, East Texas in a further year, Equinor will owe Standard Lithium parent company $40 million. That'll be a payment from Equinor to us upon taking FID, which would be approved at the J.V. board level.

This was further bolstered by the follow-on offering last month, which helps support our expected Equity contribution into the SWA project at FID and continuing to progress development work in East Texas.

The event was highlighted by a strong keynote address from Arkansas Governor Sarah.

Securing an attractive and comprehensive project. Financing package is a critical component of the final investment decision for SWA,

Huckabee Sanders.

The excitement around developing a domestic lithium upstream and midstream supply chain centered around the smack over formation was remarkable.

Standard lithium continues to be extremely well positioned with a portfolio of high quality and scalable assets and we're excited by the prospect of being a domestic champion for securing critical minerals production in the United States.

The $1.45 billion of project capex is expected to be financed by a combination of senior secured project debt, the $225 million grant from the DOE, as well as respective funding contributions from Standard Lithium and Ecuador.

Joseph Rieger: Okay. If you guys make an FID and then for any reason it changes at a later date, you still get the $40 million upfront?

David Park: I would say correct because we took FID. However, I don't believe that we would take FID and then back out at a later date.

We're highly encouraged by the critical milestones we delivered in the third quarter and we expect to provide multiple updates in the coming months as we seek to conclude our ongoing project financing and customer offtake processes.

Joseph Rieger: Okay. Fair enough. All right. Thanks, guys.

The JB is targeting approximately 1 billion dollars. In total project debt supported by leading export Credit Agencies and commercial lenders. The remaining contribution required by standard, lithium will be reduced by the million dollar. FID Milestone payment due for equinor as well as proceeds from the recent Equity raise.

I will now turn it back over to David for closing remarks.

Operator: There are no further questions at this time, and this does conclude today's call. Thank you for attending. You may now disconnect.

Analyzed selection of our key SWA project vendors and approve.

Before moving to construction SWA in 2026.

Thanks a lot. On a final note, I wanted to share that we recently played a leading corporate role in organizing the Arkansas Lithium Innovation Summit that took place in Little Rock two weeks ago.

Thanks, again for joining us today opera.

Operator back to you for questions.

The event was highlighted by a strong keynote address from Arkansas Governor Sarah Huckabee Sanders.

Thank you we will now begin the question and answer session. If you would like to ask a question. Please raise your hand now.

Do you have dialed in to today's call. Please press star nine to raise your hand and star six two on mute, please standby and wait a few moments, while we compile the Q&A roster.

The excitement around developing a domestic lithium upstream and Midstream supply chain centered around the Smackover formation was remarkable.

Your first question comes from the line of Joseph Reagor with Roth Capital. Joseph Your line is on mute. It you May now go ahead.

Standard lithium continues to be extremely, well, positioned with a portfolio of high-quality and scalable assets. And we're excited by the prospect of being a domestic Champion for securing critical minerals production in the United States.

Hey, guys. Thanks for taking the questions.

Just one quick thing on.

We're highly encouraged by the critical milestones we delivered in the third quarter, and we expect to provide multiple updates in the coming months as we seek to conclude our ongoing project financing and customer off-take processes.

On the F&B payments of $40 million.

How does that work from a structure standpoint.

As soon as you make the.

Decision.

Finalized selection of our key SWA project vendors and approve. FID before moving to construction at SWA in 2026,

Triggers a $40 million payment or is it part of like as the funds go into the JV.

Thanks again for joining us today.

Operator back to you for questions.

Thank you.

David contributed an extra $40 million.

We will now begin the question.

Hi, Joe This is the law, but I'm going to take that question.

As soon as we the JV board.

Between Austin, Ecuador decides to take and move forward in southwest circumcised are over that.

If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. Please stand by and wait a few moments while we compile the Q&A roster.

Matter East, Texas, and a further year.

Ecuador will owe standard lithium parent company U S 40 billion, so that'll be a payment from Ecuador to us upon taking.

Which would be approved at the JV board level.

Okay. So if you guys.

And then any reason it changes at a later date, you still get the $40 million.

Upfront.

I would say I would say correct because we took however.

There are currently no questions at this time, so this concludes today's call. Thank you for attending, and you may now disconnect. Oh, sorry, Aaron. It looks like we may have had a question. I do see a question come in. Your first question comes from the line of Joseph Rigger with Roth Capital. Joseph, your line is unmuted. You may now go ahead.

However, I believe that we would take up Ivy and then back out the door.

Hey guys, thanks for taking the questions. Um,

Okay fair enough alright, thanks, guys.

Just one quick thing on, um,

There are no further questions at this time and this does conclude today's call. Thank you for attending you may now disconnect.

On the FID payment, the 40 million. Um, how does that work from a structure standpoint? Is it? As soon as you make the FID decision, you you it triggers the Forty million dollar payment or is it part of like as the funds go into the JV? They um, they just contribute an extra 40 million

Hi Judge, this is the law. So I'm going to take that question as soon as we, the JV board,...

Uh, between us and equinor decides to take FID and move forward in Southwest Arkansas, or for that matter East Texas, and a further year.

Uh, Ecuador will owe standard lithium parent company us 40 billion. So that'll be a payment from Ecuador to us upon taking FID, which would be approved at the JV board level.

Okay, so if you guys, uh,

Megan F A and then for any reason, it changes at a later date you still get the 40 million.

Up front.

However, I don't believe that we would take FID and then back out to a later date.

Okay, fair enough. All right. Thanks guys.

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We will wait a few moments for any additional questions to come through.

There are no further questions at this time and this does conclude today's call, thank you for attending. You may now disconnect