Q4 2025 Standard Lithium Ltd Earnings Call

March 30, 2026

Speaker #1: Hello, everyone. Thank you for joining us, and welcome to the Standard Lithium fourth quarter 2025 earnings call. After today's prepared remarks, we will host a question-and-answer session.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Standard Lithium Q4 2025 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Daniel Rosen, Vice President of Investor Relations and Strategy for Standard Lithium. Please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to Daniel Rosen, Vice President of Investor Relations and Strategy for Standard Lithium.

Speaker #1: Please go ahead.

Speaker #2: Thank you, and welcome everyone. I am joined today by David Park, our CEO and Director; Andy Robinson, President, COO, and Director; Salah Gamoudi, Chief Financial Officer; and Mike Barman, Chief Development Officer.

Daniel Rosen: Thank you, and welcome everyone. I am joined today by David Park, our CEO and Director, Andy Robinson, President, COO, and Director, Salah Gamoudi, Chief Financial Officer, and Mike Barman, 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #3: Thanks, Dan. And I appreciate everyone joining us today. We had a busy and productive fourth quarter as we advanced and completed multiple important milestones and deliverables for the company.

David Park: Thanks, Dan, and I appreciate everyone joining us today. We had a busy and productive Q4 as we advanced and completed multiple important milestones and deliverables for the company. We filed a positive definitive feasibility study for the SWA project and a maiden inferred resource report for our first project in East Texas, the Franklin Project. The DFS for SWA demonstrates the attractiveness and cost competitiveness of our first commercial project being developed alongside our Smackover Lithium JV partner, Equinor, which is expected to have production capacity of 22,500 tons per year of battery quality lithium carbonate in its initial phase. The maiden resource estimate for the JV's Franklin Project in East Texas highlights the size and quality of its brine position with some of the highest reported lithium in brine grades in all of North America.

Speaker #3: We filed a positive, definitive feasibility study for the SWA Project, and a maiden inferred resource report for our first project in East Texas, the Franklin Project.

Speaker #3: The DFS for SWA demonstrates the attractiveness and cost competitiveness of our first commercial project, being developed alongside our SMAC-over-Lithium JV partner, Equinor.

Speaker #3: Which is expected to have a production capacity of 22,500 tons per year of battery-quality lithium carbonate in its initial phase. The maiden resource estimate for the JV's Franklin Project in East Texas highlights the size and quality of its brine position, with some of the highest reported lithium-in-brine grades in all of North America.

David Park: It provides a strong foundation for future scalable production and is a key step towards the ultimate goal of reaching production of over 100,000 tons of lithium chemicals per year in Texas through multiple projects. We obtained the final regulatory approval required for SWA from the Arkansas Oil and Gas Commission for integration, receiving unanimous support for our application for the Reynolds Brine Unit, where the initial phase of the project is planned to be developed. We continued to strengthen our own financial position while also progressing the Export Credit Agency-led project financing for the SWA project. In October, Standard Lithium closed an upsized $130 million underwritten public offering. We saw strong support from institutional investors in an oversubscribed order book, underscoring the belief in our strategy and the quality of our assets.

Speaker #3: It provides a strong foundation for future scalable production and is a key step towards the ultimate goal of reaching production of over 100,000 tons of lithium chemicals per year in Texas through multiple projects.

Speaker #3: We obtained the final regulatory approval required for SWA from the Arkansas Oil and Gas Commission for integration, receiving unanimous support for our application for the Reynolds brine unit, where the initial phase of the project is planned to be developed.

Speaker #3: And we continue to strengthen our own financial position, while also progressing the export credit agency-led project financing for the SWA project. In October, Standard Lithium closed an upsized $130 million underwritten public offering.

Speaker #3: We saw strong support from institutional investors and an oversubscribed order book, underscoring the belief in our strategy and the quality of our assets. Additionally, SMAC over Lithium received indications of interest for over $1 billion in project financing for the SWA project, led by three major export credit agencies, including the Export-Import Bank of the United States and Export Finance Norway.

David Park: Additionally, Smackover Lithium received indications of interest for over $1 billion in project financing for the SWA project. Led by three major export credit agencies, including the Export-Import Bank of the United States and Export Finance Norway, and supported by a strong group of commercial banks. Interest came in at competitive indicative terms and exceeds the targeted debt amount. To begin 2026, we've been working diligently to advance the remaining work streams needed to reach a final investment decision for the SWA project. We've made meaningful progress on all fronts, including the signing of our first binding commercial offtake agreement with Trafigura, a global commodities market leader with an established presence across battery metals, including lithium. Smackover Lithium will supply Trafigura with 8,000 metric tons per year of battery-quality lithium carbonate for over a 10-year period, beginning at the start of commercial production.

Speaker #3: And supported by a strong group of commercial banks. Interest came in at competitive, indicative terms and exceeds the targeted debt amount. To begin 2026, we've been working diligently to advance the remaining workstreams needed to reach a final investment decision for the SWA project.

Speaker #3: We've made meaningful progress on all fronts, including the signing of our first binding commercial offtake agreement with Trafigura, a global commodities market leader with an established presence across battery metals, including lithium.

Speaker #3: SMAC over Lithium will supply Trafigura with 8,000 metric tons per year of battery-quality lithium carbonate for a period of over 10 years, beginning at the start of commercial production.

David Park: We'll address the status of each of the remaining work streams and how it supports our plan to take FID and begin construction in 2026. To provide an update on the key project-related developments and deliverables ahead, I'll pass it over to Andy.

Speaker #3: We'll address the status of each of the remaining workstreams and how it supports our plan to take FID and begin construction in 2026. To provide an update on the key project-related developments and deliverables ahead, I'll pass it over to Andy.

Andy Robinson: Thanks, David. The four primary deliverables to be completed prior to taking FID are contract execution with key construction vendors, receiving National Environmental Policy Act, or NEPA, approval from the federal regulators, finalizing customer offtake agreements, and closing the project financing. We're pursuing an engineering, procurement, construction, and commissioning, or EPCC model, for the downstream portion of the project, which contains a central processing facility and includes the direct lithium extraction and battery quality lithium carbonate conversion process. We're pursuing an engineering, procurement, and construction management, or EPCM model, for the upstream or wellfield and pipeline portion of the project. We are close to finalizing agreements with our preferred partners in these roles and expect for both of these to be completed in Q2. Each contract will contain a limited notice to proceed upon signing in order to immediately progress key work items and optimize the construction schedule.

Speaker #4: Thanks, David. The four primary deliverables to be completed prior to taking FID are contract execution with key construction vendors, receiving National Environmental Policy Act, or NEPA, approval from the federal regulators, finalizing customer offtake agreements, and closing the project financing.

Speaker #4: We're pursuing an Engineering, Procurement, Construction, and Commissioning, or EPCC, model for the downstream portion of the project, which contains a central processing facility and includes a direct lithium extraction and battery-quality lithium carbonate conversion process.

Speaker #4: We're pursuing an engineering, procurement, and construction management, or EPCM, model for the upstream or well field and pipeline portion of the project. We are close to finalizing agreements with our preferred partners in these roles, and expect for both of these to be completed in the second quarter.

Speaker #4: Each contract will contain a limited notice to proceed upon signing, in order to immediately progress key work items and optimize the construction schedule. The full notice to proceed will immediately follow a positive final investment decision.

Andy Robinson: The full notice to proceed will immediately follow a positive final investment decision. On the regulatory front, the project is required to undergo an environmental assessment on the NEPA, triggered by our $225 million grant from the Department of Energy. The DOE is leading the environmental assessment process, which is progressing well. The project completed all necessary field work and baseline environmental studies for input into the EA in 2025. DOE has completed all necessary consultation with other federal agencies and tribal nations, and has completed the draft EA report for public comment. We expect the NEPA process to be completed in Q2 as per the federal permitting dashboard. Overall, we've received strong government support throughout this process for our project, which received a FAST-41 transparency project designation.

Speaker #4: On the regulatory front, the project is required to undergo an environmental assessment under NEPA, triggered by our $225 million grant from the Department of Energy.

Speaker #4: The DOE is leading the environmental assessment process, which is progressing well. The project completed all necessary fieldwork and baseline environmental studies for input into the EA in 2025.

Speaker #4: DOE has completed all necessary consultation with other federal agencies and Tribal Nations and has completed the draft EA report for public comment. We expect the NEPA process to be completed in the second quarter, as per the Federal Permitting Dashboard.

Speaker #4: Overall, we've received strong government support throughout this process for our project, which received a FAST-41 transparency project designation. Turning to our dual-track customer offtake and project financing processes, SMAC over Lithium, alongside our experienced financial advisors, continues to make progress, as reflected by our first binding commercial offtake agreement and the indications of interest received to support the project debt, which Salah will touch on in more detail.

Andy Robinson: Turning to our dual-track customer offtake and project financing processes, Smackover Lithium, alongside our experienced financial advisors, continues to make progress, as reflected by our first binding commercial offtake agreement and the indications of interest received to support the project debt, which Salah will touch on in more detail. Of our planned 22,500 tons of annual nameplate lithium carbonate capacity, we're targeting for approximately 80% of that production to be under long-term offtake contracts. Our first offtake agreement with Trafigura for 8,000 tons represents over 40% of targeted offtake for the initial phase of the SWA project. Joint venture is in advanced commercial negotiations with multiple additional parties with the aim to complete this process as soon as practical.

Speaker #4: Of our planned 22,500 tons of annual nameplate lithium carbonate capacity, we're targeting approximately 80% of that production to be under long-term offtake contracts.

Speaker #4: Our first offtake agreement with Trafigura for 8,000 tons represents over 40% of targeted offtake for the initial phase of the SWA project. The joint venture is in advanced commercial negotiations with multiple additional parties, with the aim to complete this process as soon as practical.

Andy Robinson: We remain focused on securing the best possible terms under these agreements in order to support our project financing efforts and to help mitigate risk from negative price fluctuations while maintaining attractive price upside for our stakeholders. Of the remaining pre-FID deliverables, we believe completing the customer offtakes has the most potential timing variability given the nature of these negotiations. All material offtake terms must be agreed upon before the final sizing and structure of the project finance package can be determined. With that said, we continue to advance project financing due diligence, documentation, credit and other approvals in parallel such that we're in a position to reach financial close and draw down shortly thereafter. The joint venture remains confident in its ability to reach a satisfactory outcome in these customer offtake negotiations, thus allowing for FID to be taken and for construction to begin in 2026.

Speaker #4: We remain focused on securing the best possible terms under these agreements in order to support our project financing efforts and to help mitigate risk from negative price fluctuations, while maintaining attractive price upside for our stakeholders.

Speaker #4: Of the remaining pre-FID deliverables, we believe completing the customer offtakes has the most potential timing variability, given the nature of these negotiations. All material offtake terms must be agreed upon before the final sizing and structure of the project finance package can be determined.

Speaker #4: With that said, we continue to advance project financing due diligence, documentation, credit, and other approvals in parallel, such that we're in a position to reach financial close and draw down shortly thereafter.

Speaker #4: The joint venture remains confident in its ability to reach a satisfactory outcome in these customer offtake negotiations, thus allowing for FID to be taken and for construction to begin in 2026.

Andy Robinson: Assuming we begin construction on this timeline, we would expect to achieve first commercial production in 2029. We also want to touch on our priorities for East Texas in 2026. For the Franklin project and the region more broadly, we intend to continue to improve the definition of our resource positions through additional drilling and process test work. We're aiming to release a preliminary feasibility study for the Franklin project within the next 12 months, demonstrating the project economics of that world-class resource and hopefully achieving further recognition for this important and underappreciated part of our asset portfolio. We'll continue to work on measured and inferred resource reports for our two other potential projects in the area, all the while continuing to expand our leasehold footprint in East Texas. Now I'll turn it over to Salah to discuss our financial results.

Speaker #4: Assuming we begin construction on this timeline, we would expect to achieve first commercial production in 2029. We also want to touch on our priorities for East Texas in 2026.

Speaker #4: For the Franklin project and the region more broadly, we intend to continue to improve the definition of our resource positions through additional drilling and process test work.

Speaker #4: We're aiming to release a preliminary feasibility study for the Franklin project within the next 12 months. Demonstrating the project economics of that world-class resource, and hopefully achieving further recognition for this important and underappreciated part of our asset portfolio.

Speaker #4: We'll continue to work on made-and-inferred resource reports for our two other potential projects in the area, all the while continuing to expand our leasehold footprint in East Texas.

Speaker #4: And now I'll turn it over to Salah to discuss our financial results.

Salah Gamoudi: Thank you, Andy. For reference, all numerical references that I will be making today are in US dollars. For the Q4 ended 31 December 2025, the company reported a net loss of $35.7 million as compared to a $24.7 million loss during the Q4 ended 31 December 2024.

Speaker #3: Thank you, Andy. For reference, all numerical references that I will be making today are in US dollars. For the fourth quarter ended December 31, 2025, the company reported a net loss of $35.7 million, as compared to a $24.7 million loss during the quarter ended December 31, 2024.

Salah Gamoudi: The biggest drivers of this year-over-year increase in our net loss are one time in nature and not reflective of underlying business trends. Namely, we incurred a $6.8 million increase in impairment expense, a non-cash charge related to the Lanxess property project, and a non-cash $3.4 million increase in foreign exchange loss. The Lanxess property project impairment is a result of the termination of our previous memorandum of understanding with Lanxess, a cessation of discussions with Lanxess on further advancement of the project, the execution of a new site services agreement which defines our go forward relationship with Lanxess in regards to our demonstration facility, but does not contemplate further commercial development. Finally, a refocus of our efforts and capital allocation towards our Southwest Arkansas and East Texas projects.

Speaker #3: The biggest drivers of this year-over-year increase in our net loss are one-time in nature and not reflective of underlying business trends. Namely, we incurred a $6.8 million increase in impairment expense, a non-cash charge related to the LENXIS property project, and a non-cash $3.4 million increase in foreign exchange loss.

Speaker #3: The LENXIS property project impairment is a result of the termination of our previous memorandum of understanding with LENXIS, a cessation of discussions with LENXIS on further advancement of the project, the execution of a new site services agreement which defines our go-forward relationship with LENXIS in regards to our demonstration facility, but does not contemplate further commercial development.

Speaker #3: And finally, a refocus of our efforts and capital allocation towards our Southwest Arkansas and East Texas projects. As a result, we recognized a full $26.5 million impairment expense of our exploration and evaluation assets associated with the LENXIS Property project in the fourth quarter.

Salah Gamoudi: As a result, we recognized a full $26.5 million impairment expense of our exploration and evaluation assets associated with the Lanxess property project in Q4. Independent of this, Standard Lithium will continue to run and operate its industrial scale DLE and carbonation demonstration plant at Lanxess existing bromine site as it has been doing successfully for roughly the last six years. The foreign exchange loss was due to having significantly higher average cash balances during Q4 as a result of our $130 million follow-on offering in October, and the resultant non-cash accounting impact of changes in exchange rates on those cash balances.

Speaker #3: Independent of this, Standard Lithium will continue to run and operate its industrial-scale DLE and carbonation demonstration plant at LANXESS' existing bromine site, as it has been doing successfully for roughly the last six years.

Speaker #3: The foreign exchange loss was due to having significantly higher average cash balances during the fourth quarter as a result of our $130 million follow-on offering in October.

Speaker #3: And the resultant non-cash accounting impact of changes in exchange rates on those cash balances. For the quarter, as compared to the quarter ended December 31, 2024, G&A of $2.9 million increased by $0.2 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 towards construction and eventual production.

Salah Gamoudi: For the quarter as compared to the quarter ended 31 December 2024, G&A of $2.9 million increased by $0.2 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 towards construction and eventual production. Demonstration plant costs of $1.4 million increased by $0.6 million as a result of higher personnel costs and indirect allocations associated with process refinement and testing, as well as operator training and support of future potential commercial production. Share-based compensation expense of $1.5 million increased by $0.3 million due to increased long-term incentive compensation for our management employees as we expanded our team as noted above, and to better align compensation and shareholder value creation.

Speaker #3: Demonstration plant costs of $1.4 million increased by $0.6 million as a result of higher personnel costs and indirect allocations associated with process refinement and testing, as well as operator training and support of future potential commercial production.

Speaker #3: Share-based compensation expense of $1.5 million increased by $0.3 million due to increased long-term incentive compensation for our management employees as we expanded our team as noted above, and to better align compensation and shareholder value creation.

Salah Gamoudi: Below operating expenses on the income statement, we recorded a higher investment loss in joint ventures of $3.2 million for the quarter versus $0.3 million in the prior period. This increase reflects expanded operational activity and related expenses at the Smackover Lithium JV level in 2025 as we advance to releasing our two technical reports at SWA and East Texas. We also recorded a $0.4 million gain on the fair value of our contingent FID payments to be received by Standard Lithium from our JV partner, Equinor, should we reach a positive FID at our SWA and/or East Texas projects by certain dates. As we continue to achieve milestones and get closer, the value of our contingent FID payment assets have increased as reflected by the gain.

Speaker #3: Below operating expenses on the income statement, we recorded a higher investment loss in joint ventures of $3.2 million for the quarter versus $0.3 million in the prior period.

Speaker #3: This increase reflects expanded operational activity and related expenses at the SMACK JV level in 2025 as we advance to releasing our two technical reports at SWA and East Texas.

Speaker #3: We also recorded a $0.4 million gain on the fair value of our contingent FID payments to be received by Standard Lithium from our JV partner, Equinor, should we reach a positive FID at our SWA and/or East Texas projects by certain dates.

Speaker #3: As we continue to achieve milestones and get closer, the value of our contingent FID payment assets has increased, as reflected by the gain. We also recognize $0.9 million in additional interest income for the quarter, driven by our higher average cash balances for part of the period.

Salah Gamoudi: We also recognized $0.9 million in additional interest income for the quarter, driven by our higher average cash balances for part of the period. For the full year 2025, the company reported a net loss of $48.4 million. Full year results are compared to our last audited period, a shorter six-month fiscal stub period ended December 31, 2024 in our reported financials. This is due to changing the company's fiscal year-end from a June 30 fiscal year-end to a December 31 calendar year-end in Q4 2024 to better align our reporting cycle with how we manage the business and align with our peers. Therefore, we have kept our focus today on Q4 comparables instead of the full year 2025. Moving on to our balance sheet.

Speaker #3: For the full year 2025, the company reported a net loss of $48.4 million. Full-year results are compared to our last audited period, a shorter six-month fiscal subperiod ended December 31, 2024, in our reported financials.

Speaker #3: This is due to changing the company's fiscal year-end from a June 30 fiscal year-end to a December 31 calendar year-end in the fourth quarter of 2024, to better align our reporting cycle with how we manage the business and align with our peers.

Speaker #3: Therefore, we have kept our focus today on fourth-quarter comparables instead of the full year 2025. Moving on to our balance sheet, we ended the quarter with strong cash and working capital positions of $152.3 million and $147.6 million, respectively, as compared to cash and working capital positions of $31.2 million and $27.5 million in the prior year, respectively.

Salah Gamoudi: We ended the quarter with strong cash and working capital positions of $152.3 million and $147.6 million respectively, as compared to cash and working capital positions of $31.2 million and $27.5 million in the prior year, respectively. This higher cash position is primarily reflective of the follow-on offering we completed in October, which generated net proceeds of $122.2 million and continued use of our ATM facility, partially offset by our capital contributions made to the SWA and East Texas projects and general operating expenses. The follow-on offering will help to support our expected required equity contribution into the SWA project at FID, as well as continuing to progress development work in East Texas.

Speaker #3: This higher cash position is primarily reflective of the follow-on offering we completed in October, which generated net proceeds of $122.2 million, and continued use of our ATM facility, partially offset by our capital contributions made to the SWA and East Texas projects and general operating expenses.

Speaker #3: The follow-on offering will help to support our expected required equity contribution into the SWA project at FID, as well as continuing to progress development work in East Texas.

Salah Gamoudi: The sole project funding requirements by Equinor into the JVs as part of the original agreement were exhausted during Q2 2025, with Standard Lithium and Equinor subsequently making their own respective capital contributions based on a 55-45% ownership split. Standard Lithium made JV capital contributions of $9.6 million during Q4, bringing the 2025 total to $29.1 million, as reflected on our cash flow statement. For the full year, $16.1 million and $12.9 million went towards SWA and East Texas respectively. Securing an attractive and comprehensive project finance package is a critical component of the final investment decision for SWA.

Speaker #3: The sole project funding requirements by Equinor into the JVs as part of the original agreement were exhausted during the second quarter of 2025. With Standard Lithium and Equinor subsequently making their own respective capital contributions based on a 55-45% ownership split.

Speaker #3: Standard Lithium made JV capital contributions of $9.6 million during the fourth quarter, bringing the 2025 total to $29.1 million as reflected on our cash flow statement.

Speaker #3: For the full year, $16.1 million and $12.9 million went towards SWA and East Texas, respectively. Securing an attractive and comprehensive project finance package is a critical component of the final investment decision for SWA.

Salah Gamoudi: The approximate $1.5 billion of base project CapEx per our DFS. In addition to potential cost overrun facilities, reserve accounts, or other incremental capital requirements are expected to be financed by a combination of senior secured project debt, our $225 million grant from the DOE, as well as respective funding contributions from Standard Lithium and Equinor. The joint venture is targeting approximately $1.1 billion total in senior secured limited recourse project debt supported by leading export credit agencies and commercial banks. Last year, we conducted a market sounding of global commercial banks that are active in the project financing debt market. The responses included indicative terms that were consistent with the expectations of the JV and validated certain assumptions regarding the cost, term, structure, and conditions that are customary for project debt facilities of this nature.

Speaker #3: The approximate $1.5 billion of base project CAPEX per our DFS, in addition to potential cost overrun facilities, reserve accounts, or other incremental capital requirements, are expected to be financed by a combination of senior secured project debt, our $225 million grant from the DOE, as well as respective funding contributions from Standard Lithium and Equinor.

Speaker #3: The joint venture is targeting approximately $1.1 billion total in senior secured, limited recourse project debt, supported by leading export credit agencies and commercial banks.

Speaker #3: Last year, we conducted a market-sounding of global commercial banks that are active in the project financing debt market. The responses included indicative terms that were consistent with the expectations of the JV and validated certain assumptions regarding the cost, term, structure, and conditions that are customary for project debt facilities of this nature.

Salah Gamoudi: The commercial bank expressions of interest, combined with those of the ECAs, exceeded our total targeted project debt. The remaining 55% pro rata equity contribution required by Standard Lithium will be supported by the proceeds from our recent equity raise. Any cost overrun facilities or reserve accounts over and above base project CapEx requirements remain subject to negotiation with the lenders, with quantums to be determined. I will now turn it back over to David for closing remarks.

Speaker #3: The commercial bank expressions of interest, combined with those of the ECAs, exceeded our total targeted project debt. The remaining 55% pro rata equity contribution required by Standard Lithium will be supported by the proceeds from our recent equity raise.

Speaker #3: Any cost overrun facilities or reserve accounts over and above base project CAPEX requirements remain subject to negotiation with the lenders, with quantums to be determined.

Speaker #3: I will now turn it back over to David for closing remarks.

David Park: Thanks, Salah. Standard Lithium continues to be extremely well-positioned with a portfolio of high quality and scalable assets and as a domestic champion for securing critical minerals production in the United States. Our SWA project is well engineered, well-defined, and we have an exciting and important year ahead of us as we approach a final investment decision. We delivered critical project milestones in Q4 and to begin this year, and we intend to provide multiple updates in the coming weeks and months as we conclude our pre-FID work streams and push to approve FID at SWA before moving quickly to construction in 2026. Thanks again for joining us today. Operator, I'll turn it back to you.

Speaker #1: Thanks a lot. Standard Lithium continues to be extremely well-positioned, with a portfolio of high-quality and scalable assets, and as a domestic champion for securing critical minerals production in the United States.

Speaker #1: Our SWA project is well-engineered, well-defined, and we have an exciting and important year ahead of us as we approach a final investment decision. We delivered critical project milestones in the fourth quarter and to begin this year, and we intend to provide multiple updates in the coming weeks and months as we conclude our pre-FID workstreams and push to approve FID at SWA before moving quickly to construction in 2026.

Speaker #1: Thanks again for joining us today. Operator, I'll turn it back to you.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. Please pick up your handset when you are asking a question, and if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from the line of Anthony Taglieri from Canaccord Genuity. Your line is now open. Please go ahead.

Speaker #2: We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Speaker #2: To withdraw your question, please press star one again. Please pick up your handset when you are asking a question, and if you are muted locally, please remember to unmute your device.

Speaker #2: Please stand by while we compile the Q&A roster. Our first question comes from the line of Anthony Taglieri from Canaccord Genuity. Your line is now open.

Speaker #2: Please go ahead.

Anthony Taglieri: Thanks, and good afternoon, David and team. Thanks for taking my question. Just curious maybe on the offtake discussions and how those might have changed over the last 6 to 12 months. You know, the rising price environment we've seen, has it changed the number of parties and level of interest? You know, is there more caution given the price volatility? Have we seen changes to pricing mechanisms? Maybe some color there would be great.

Speaker #3: Thanks, and good afternoon, David and team. Thanks for taking my question. I'm just curious, maybe on the off-take discussions and how those might have changed over the last 6 to 12 months.

Speaker #3: The rising price environment we've seen—has it changed the number of parties and the level of interest? Is there more caution given the price volatility?

Speaker #3: Have we seen changes to pricing mechanisms? Maybe some color there would be great.

David Park: Yeah. Great. Thanks for the question. I'll take this one. I would say the market clearly has evolved in a positive direction in the last six months. Lithium pricing has moved to levels that are more consistent with reinvestment support. As a result, I think it's fair to say there are more counterparties that have reemerged as interested parties in discussions that are willing to enter into agreements with us that would be supportive of the financing that we're looking to put in place. I would say the last six months has been a positive and has helped us move forward. That said, as you'll note, these agreements have taken longer to put in place than we would've thought.

Speaker #1: Yeah, great. Thanks for the question. I'll take this one. I would say the market clearly has evolved in a positive direction in the last six months.

Speaker #1: Lithium pricing has moved to levels that are more consistent with reinvestment support. As a result, I think it's fair to say there are more counterparties that have re-emerged as interested parties in discussions.

Speaker #1: That are willing to enter into agreements with us that would be supportive of the financing that we're looking to put in place. So, I would say the last six months has been a positive.

Speaker #1: And has helped us move forward. That said, as you've noted, these agreements have taken longer to put in place than we would have thought.

David Park: They're quite complex agreements that need to survive through multiple cycles. They're multi-year agreements, multi-hundred-million-dollar agreements. Making sure that these transactions work for not just us, but our lenders, our shareholders, and our partners, is extremely important. Long story short, we're moving in the right direction. The market environment is supportive of what we're trying to do, and if anything, it's brought more potential counterparties to the table.

Speaker #1: They're quite complex agreements. They need to survive through multiple cycles. They're multi-year agreements, multi-hundred-million-dollar agreements. So making sure that these transactions work for not just us, but our lenders, our shareholders, and our partners is extremely important.

Speaker #1: So, long story short, we're moving in the right direction. The market environment is supportive of what we're trying to do, and, if anything, it's brought more potential counterparties to the table.

Anthony Taglieri: Great. That's helpful. Thank you. Maybe just as a follow-up. Should we expect to see, you know, another offtake agreement, for example, prior to the financing concluding? Or will we expect sort of the next wave of, you know, offtake agreements to sort of happen at the same time?

Speaker #3: Great, that's helpful, thank you. Maybe just as a follow-up—should we expect to see another off-take agreement, for example, prior to the financing concluding?

Speaker #3: Or will we expect sort of the next wave of off-take agreements to happen at the same time?

David Park: No, it's been our plan since day one to have over 80% of our volumes contracted prior to FID with multiple counterparties. I think you should expect to see some announcements with respect to one or two potential counterparties that will, you know, in the coming quarter that should be supportive of the financings we're looking to put in place.

Speaker #1: No, it's been our plan since day one to have over 80% of our volumes contracted prior to FID with multiple counterparties. So I think you should expect to see some announcements with respect to one or two potential counterparties in the coming quarter that should be supportive of the financings we're looking to put in place.

Anthony Taglieri: Great. Thank you very much. I'll pass it on.

Speaker #3: Great. Thank you very much. I'll pass it on.

Operator: Thank you for your question. Your next question comes from the line of Max Yerrill from BMO Capital Markets. Max, your line is now open.

Speaker #2: Thank you for your question. Your next question comes from the line of Max Yarrow from BMO Capital Markets. Max, your line is now open.

Max Yerrill: Hey, guys. Thanks for taking my question. Just understanding that the project debt sounds like it's contingent upon finalizing the offtake agreements. Are there any clauses or caveats that the project debt lenders are looking for in those offtake contracts? Maybe a follow-up is that 80% target an internal standard strategic decision, or is that one that the project debt lenders are looking for? Thanks.

Speaker #4: Hey, guys. Thanks for taking my question. Just understanding that the project debt sounds like it's contingent upon finalizing the off-take agreements. Are there any clauses or caveats that the project debt lenders are looking for in those off-take contracts?

Speaker #4: And then maybe a follow-up is, is that 80% target an internal standard strategic decision, or is that one that the project debt lenders are looking for?

Speaker #4: Thanks.

David Park: Thanks, Max. You know what I'd say is the 80% is an internal target, but as a whole, what percentage we contract will be a function of the terms we have in place across a portfolio of different agreements. Long story short, we're looking for take or pay contracts with credit-worthy counterparties that as a portfolio provide sufficient price support that our lenders can get comfortable with the quantum of debt we're looking at putting in place. It's really a portfolio approach. It is not any one specific deal has to meet certain specific terms.

Speaker #1: Thanks, Max. What I'd say is, the 80% is an internal target. But as a whole, what percentage we contract will be a function of the terms we have in place across a portfolio of different agreements.

Speaker #1: So, long story short, we're looking for take-or-pay contracts with creditworthy counterparties that, as a portfolio, provide sufficient price support so that our lenders can get comfortable with the quantum of debt we're looking at putting in place.

Speaker #1: So, it's really a portfolio approach. It's not that any one specific deal has to meet certain specific terms.

Max Yerrill: Got it. That's helpful. Are we still looking at a roughly two-year construction period? I assume if all goes to plan this year, the bulk of the CapEx will still be 2027, 2028 for phase one.

Speaker #4: Yeah, that's helpful. And then, are we still looking at a roughly two-year construction period? And I assume if all goes to plan this year, the bulk of the CapEx will still be 2027, 2028 for Phase One?

David Park: Sure. Why don't I turn that one over to Andy?

Speaker #1: Sure. Why don't I turn that one over to Andy?

Andy Robinson: Yeah, sure. Thanks. Hey, Max. Yeah, the construction period, I think we're now, you know, guiding towards commercial production in 2029. As we are concluding our discussions with the contracting counterparties, we're refining the construction schedule, and importantly, the pre-commissioning, commissioning, and start-up schedules as well, Max, so that we are kinda getting ourselves set up for success during the commissioning and startup process so that we can, you know, hit commercial operation to align well with the offtake contracts that David was just talking about. It is fully integrated process so that not only the construction, but the full commissioning and startup period is fully aligned with the offtake contracts that we're negotiating and signing at the moment. Yeah, we're looking towards commercial production 2029, assuming FID and construction this year.

Speaker #5: Yeah, sure. Thanks, Amex. Yeah, the construction period—I think we're now guiding towards commercial production in '29. As we are concluding our discussions with the contracting counterparties, we're refining the construction schedule.

Speaker #5: And importantly, the pre-commissioning, commissioning, and startup schedules as well, Max. So that we are kind of getting ourselves set up for success during the commissioning and startup process, so that we can hit commercial operation to align well with the off-take contracts that David was just talking about.

Speaker #5: So it is a fully integrated process, so that not only are the construction, but the full commissioning and startup period, fully aligned with the off-take contracts that we're negotiating and signing at the moment.

Speaker #5: So, yeah, we're looking towards commercial production in 2029, assuming FID and construction this year.

Max Yerrill: Great. Thanks. That's very helpful color. I'll turn it back over to the queue. Thanks.

Speaker #4: Great, thanks. That’s very helpful, Carla. I’ll turn it back over to Q. Thanks.

Operator: Thank you very much for your question. Your next question comes from the line of Theo Genzabu. Theo, your line is now open.

Speaker #2: Thank you very much for your question. Your next question comes from the line of Theo. Theo, your line is now open.

Theo Genzabu: Great. Thank you everyone for taking my call this afternoon. I appreciate the color around the path towards FID, but out of the things that you've disclosed in the press release, is there any one single gating item to FID that stands out amongst them that you would consider?

Theo Genzebu: Great. Thank you everyone for taking my call this afternoon. I appreciate the color around the path towards FID, but out of the things that you've disclosed in the press release, is there any one single gating item to FID that stands out amongst them that you would consider?

Speaker #4: Great, thanks everyone for taking my call this afternoon. I appreciate the color around the path towards FID. But out of the things that you've disclosed in the press release, is there any one single gating item to FID that stands out among them that you would concern?

David Park: I'll go first, and then Andy, maybe you can round it out. There are a number of different things which we need to accomplish prior to FID. Andy already hit on, you know, EPC agreements, finalization of the NEPA process, finalization of offtake agreement, and then closing the project debt financing. I would say that more than likely it is the offtake agreements that are the hardest to predict the exact timing of when they come in place and get finalized. But you know, everything is. We're working all these streams in parallel, but they all have to work with each other. I don't know, Andy, if you had anything else you wanted to say there.

Speaker #1: I'll go first, and then Andy, maybe you can round it out. There are a number of different things which we need to accomplish prior to FID.

Speaker #1: Andy already hit on EPC agreements, finalization of the NEPA process, finalization of off-take agreements, and then closing the project debt financing. I would say that more than likely it is the off-take agreements that are the hardest to predict in terms of the exact timing of when they come into place and get finalized.

Speaker #1: But everything is, we're working all these streams in parallel, but they all have to work with each other. I don't know, Andy, if you had anything else you wanted to say there.

Andy Robinson: I mean, not really. I mean, Theo, you know, there are several things, obviously, which are very tightly under our control, and we're moving those forward as quickly as possible. You know, as we mentioned, we guided to concluding the NEPA process, that federal permitting process, this Q2 period. Similarly for the EPCM and the EPCC contracts, we obviously have a tight grip on those and getting those to conclusion. We've talked about the offtake process, and sort of, that is less under our immediate control to fully and tightly direct the timelines. As we mentioned before, that's going extremely well. Everything, you know, everything concludes with the debt piece at the final stage.

Speaker #5: I mean, not really. I mean, Theo, there are several things, obviously, which are very tightly under our control, and we're moving those forward as quickly as possible.

Speaker #5: As we mentioned, we guided to concluding the NEPA process, that federal permitting process, this Q2 period. Similarly, for the EPCM and the EPCC contracts, we obviously have a tight grip on those and are getting those to conclusion.

Speaker #5: We've talked about the off-take process, and, as we mentioned, that is less under our immediate control to fully and tightly direct the timelines. But, as we mentioned before, that's going extremely well.

Speaker #5: And everything concludes with the debt piece at the final stage. So we have a full team, I think. As we mentioned before, Theo, we've got the Standard Lithium and the Equinor partners driving this towards—and yeah, we're excited to get this one into construction and moving it forward as quickly as we can.

Andy Robinson: We have a full team, I think as we mentioned before, Theo, you know, we've got a fully integrated team across the Standard Lithium and the Equinor partners, driving this towards an FID conclusion this year. Yeah, we're excited to get this one into construction and moving it forward as quickly as we can.

David Park: Sure. Let me just add on that, you know, there is a healthy market for domestic lithium in the 2029 and beyond timeframe. We remain in advanced commercial negotiations with multiple parties. We're committed to providing you updates as time goes by on the progress we're making on these initiatives.

Speaker #1: Sure. Let me just add on that there is a healthy market for domestic lithium in the 2029 and beyond timeframe. And we remain in advanced commercial negotiations with multiple parties.

Speaker #1: And we're committed to providing you updates as time goes by on the progress of our initiatives.

Theo Genzabu: Great. Yeah, thanks for that additional color. I guess just piggybacking off of the offtaker conversation, is there any specific sector of counterparties where you're seeing the most constructive discussions or more, I guess, advanced discussions currently?

Theo Genzebu: Great. Yeah, thanks for that additional color. I guess just piggybacking off of the offtaker conversation, is there any specific sector of counterparties where you're seeing the most constructive discussions or more, I guess, advanced discussions currently?

Speaker #4: Great, yeah, thanks for that additional color. And I guess just piggybacking off of the off-taker conversation, is there any specific sector of counterparties where you're seeing the most constructive discussions, or more, I guess, advanced discussions currently?

David Park: You know, I from day one, we were always looking at multiple counterparties across trading house, battery manufacturers, and auto OEMs. We remain in discussions with all three of those. We didn't want to put all our eggs in one basket. We wanted a diverse portfolio of customers, and that's still what we're heading towards.

Speaker #1: No, from day one, we're always looking at multiple counterparties across trading houses, battery manufacturers, and auto OEMs. And we remain in discussions with all three of those.

Speaker #1: We didn't want to put all our eggs in one basket. We wanted a diverse portfolio of customers, and that's still what we're heading towards.

Theo Genzabu: Got you. Okay. Thanks for that. Maybe just last one from me. Just on the ATM program, how are you thinking about that, I guess usage from here? I assume it still remains purely opportunistic, or could it be used more actively, if the stock stays supportive ahead of FID?

Theo Genzebu: Got you. Okay. Thanks for that. Maybe just last one from me. Just on the ATM program, how are you thinking about that, I guess usage from here? I assume it still remains purely opportunistic, or could it be used more actively, if the stock stays supportive ahead of FID?

Speaker #4: Gotcha. Okay, thanks for that. And then maybe just the last one for me. Just on the ATM program—how are you thinking about that, I guess, usage from here?

Speaker #4: I assume it still remains purely opportunistic. Or could it be used more actively if the stock stays supportive ahead of FID?

David Park: I'm gonna turn that one to you, Salah.

Speaker #1: When I turn that one to you, Salah.

Salah Gamoudi: Thanks, David. Yeah. What I would say there is that, you know, we do have approximately $25.5 million left in our current ATM program. We plan to use that going forward prudently, and in a paced way. It is one of the tools that we can use to fund our expansion in East Texas, as well as fund a portion of our needs at Southwest Arkansas, especially pre-FID. It helps to cover corporate overhead expenses as we go along. I think the ATM will continue to be used as a prudent tool, but it will not be most likely used in a way that it will be our primary source of funding our projects in the future.

Speaker #5: Thanks, David. Yeah, so what I would say there is that we do have approximately $25.5 million left in our current ATM program.

Speaker #5: We plan to use that going forward prudently and in a paced way. It is one of the tools that we can use to fund our expansion in East Texas, as well as fund a portion of our needs at Southwest Arkansas, especially pre-FID.

Speaker #5: And it helps to cover corporate overhead expenses as we go along. So I think the ATM will continue to be used as a prudent tool, but it will not most likely be used in a way that it will be our primary source of funding our projects in the future.

Theo Genzabu: Got you. Great. I appreciate the time today, everybody, and get back in the queue.

Theo Genzebu: Got you. Great. I appreciate the time today, everybody, and get back in the queue.

Speaker #4: Okay, gotcha. Great. I appreciate the time today, everybody, and we'll get back into Q.

Operator: Thank you very much for your question. Your next question comes from the line of Joseph Reagor from ROTH Capital Partners. Joseph, your line is now open.

Speaker #2: Thank you very much for your question. Your next question comes from the line of Joseph Rieger from Roth Capital Partners. Joseph, your line is now open.

Joseph Reagor: Hey, David and team. Thanks for taking the question. One follow-up and then one other different question. You talked a lot about FID already, but is there any opportunity, given that you've got a decent balance sheet right now, to get started on any early earthwork stuff, in order to maybe even push up the timeline to first production? Or is there permitting stuff and other things going on that prevents you from really getting started or the capital is just not enough? Anything like that?

Speaker #6: Hey, David and team. Thanks for taking the questions. One follow-up and then one other, different question. So, you talked a lot about FID already, but is there any opportunity, given that you've got a decent balance sheet right now, to get started on any early earthwork stuff in order to maybe even push up the timeline to first production?

Speaker #6: Or is there permitting stuff and other things going on that prevents you from really getting started, or the capital is just not enough? Anything like that?

David Park: Great question. Andy,

Speaker #1: Great question. Andy, yeah, I'll pick up initially and hand it back. Thanks, Joe. Yeah, look, I mean, we've got a construction schedule which is being integrated right now.

Andy Robinson: Yeah, no, I'll pick up initially and hand it back. Thanks, Joe. Yeah, look, I mean, we've got a construction schedule which is being integrated right now with both of our key contracting parties. Like I said, we've got the EPCM and the EPCC. We're refining the schedule to try and optimize it as best as we can. I think the biggest time saving, you know, what we're focused on right now, Joe, we're not genuinely constrained by earth moving, earthworks, kind of enabling works type activities. Really kind of what's on the critical path for us is honestly additional engineering, early vendor outreach, procurement type activities.

Speaker #1: With both of our key contracting parties, like I said, we've got the EPCM and the EPCC, we're refining the schedule to try and optimize it as best as we can.

Speaker #1: I think the biggest time saving, what we're focused on right now, Joe, we're not genuinely constrained by earth moving, earthwork, kind of enabling work-type activities.

Speaker #1: Really, kind of what's on the critical path for us is honestly additional engineering, early vendor outreach, procurement-type activities. Those are the things. And that's really the focus of why we're going to be issuing a limited notice to proceed to the main contracting teams, so that we can kind of maintain that construction schedule by doing that early-stage, kind of more, kind of the EP parts of the various packages to kind of keep the schedule moving along.

Andy Robinson: Those are the things, and that's really the focus of why we're gonna be issuing a limited notice to proceed to the main contracting team so that we can kind of maintain that construction schedule by doing that early stage, more kind of the EP parts of the various packages to keep the schedule moving along. That's really where our focus is rather than earthworks, 'cause the amount of earthworks that we have are relatively minimal, and don't sit on the critical path of the construction schedule.

Speaker #1: So that's really where our focus is, rather than earthworks, because the amount of earthworks that we have are relatively minimal and don't sit on the critical path of the construction schedule.

Joseph Reagor: Okay. That, that's helpful. I don't think anybody's touched on it yet, but so with the Lanxess write-off, should we look at that as the company focusing on the JV, the Smackover lithium JV, and just simply the grade is higher in all of those areas, so there's no logical reason to return to the Lanxess project, or is there anything else to read into that?

Speaker #6: Okay, that's helpful. And then, I don't think anybody's touched on it yet, but with the LANXESS write-off, should we look at that as the company focusing on the JV, the Spec over Lithium JV, and just simply the grade is higher in all of those areas?

Speaker #6: So there's no logical reason to return to the LANXESS project? Or is there anything else to read into that?

David Park: No, Joe, I think you nailed it. This is all about prioritizing, focusing, and executing, and prioritizing where we have the best grade. You know, our future is Southwest Arkansas and then growing into East Texas. I don't know, Andy, if you want to comment on that more?

Speaker #1: No, Joe, I think you nailed it. This is all about prioritizing, focusing, and executing. And prioritizing where we have the best grade. So our future is Southwest Arkansas, and then growing into East Texas.

Speaker #1: I don't know, Andy, if you want to expand on that.

Andy Robinson: Yeah, no, I mean, you're exactly right. You know, Joe, like, our future, we want to build bigger projects. You know, that's, you know, this first one, the 22,500 at Southwest Arkansas phase one, you know, it's the right size project for us and the JV to build the first one. Really, the true scale comes in East Texas, where we can build some really pretty sizable projects there, given the extent of the resource, the grade of the resource, and then, you know, our continued understanding as we move through engineering and construction of this first one, making the subsequent projects larger, cheaper to build, et cetera. You know, we're looking to grow out into that much larger project portfolio in East Texas, where we can see some really substantial scale.

Speaker #5: Yeah, no, I mean, you're exactly right. And Joe, for our future, we want to build bigger projects. That's this first one, the 22,500 at Southwest Arkansas, phase one.

Speaker #5: It's the right size project for us and the JV to build the first one. But really, the true scale comes in East Texas, where we can build some really pretty sizable projects there given the extent of the resource, the grade of the resource, and then our continued understanding as we move through engineering and construction of this first one, making the subsequent projects larger, cheaper to build, etc.

Speaker #5: So we're looking to grow out into that much larger project portfolio in East Texas where we can see some really substantial scale.

Joseph Reagor: Okay. Makes sense. I'll turn it over. Thanks, guys.

Speaker #6: Okay, makes sense. I'll turn it over. Thanks, guys.

Operator: Thank you for your question. Your next question comes from the line of Noel Parks from Tuohy Brothers Investment Research. Noel, your line is now open.

Speaker #2: Thank you for your question. Your next question comes from the line of Noel Parks from Tuohy Brothers Investment Research. Noel, your line is now open.

Noel Parks: Hi, good afternoon. In the discussion of expenses before, it was mentioned that sort of process refinement and testing was a component of the expense growth. I was just wondering, that sort of work, is that more or less unique to Southwest Arkansas, or is that something that

Speaker #7: Hi, good afternoon. Just had a few. In the discussion of expenses before, it was mentioned that sort of process refinement and testing was a component of the expense growth.

Speaker #7: And I was just wondering, that sort of work, is that more or less unique to Southwest Arkansas? Or is that something that, once it's accomplished and you turn more towards East Texas, that it'll be roughly replicable, so that's work that will be more or less done one time only, essentially?

Noel Parks: Once it's accomplished and you turn more towards East Texas, it'll be roughly replicable so that's work that will be more or less done one time, you know, one time only, essentially.

Salah Gamoudi: Andy, do you want to do that?

David Park: Andy, do you want to do that?

Speaker #1: Andy, do you want to do that one?

Andy Robinson: Yeah, sure. Hey, Noel. Yeah, I mean, look, these are direct project learnings that can be applied across the whole portfolio of projects, Noel. We're in this unique situation that we have the demo plant running now. As Salah mentioned, you know, it's 6 years now that's been operating. That's now certainly one of the largest fully continuous DLE demo plants in North America. We continue to get just excellent data out of that plant.

Speaker #5: Yeah, sure. Hey, Noel. Yeah, I mean, look, these are direct project learnings that can be applied across the whole portfolio of projects, Noel. We're in this unique situation that we have the demo plant running now, as Salah mentioned.

Speaker #5: It's six years now that it's been operating. It's now certainly one of the largest fully continuous DLE demo plants in North America. We continue to get just excellent data out of that plant.

Andy Robinson: Not only do we get process learnings, optimizations in terms of how we can make the process easier to run, potentially cheaper to build, but, you know, right now, that plant also forms a really crucial function as we effectively are developing the core team of operators who, you know, during that commissioning process that I talked about a little earlier on, you know, they will be taking over, eventually from the commissioning team on from the contractor side, and running the plant. The demo plant continues to be this truly unique, sort of training tool to get the core team of operators fully used to processing, you know, Smackover brine into battery quality lithium carbonate material. That's what we do every day at the demo plant, and it's, you know, truly a unique opportunity.

Speaker #5: We continue to—not only do we get process learnings, optimizations in terms of how we can make the process easier to run, potentially cheaper to build—but right now, that plant also forms a really crucial function, as we effectively are developing the core team of operators who, during that commissioning process that I talked about a little earlier on, will be taking over eventually from the commissioning team, from the contractor side, and running the plant.

Speaker #5: And so the demo plant continues to be this truly unique sort of training tool to get the core team of operators fully used to processing Smackover brine into battery-quality lithium carbonate material.

Speaker #5: That's what we do every day at the demo plant, and it's truly a unique opportunity. We see the industry in general has struggled, I think, a little bit with commissioning and startup activities on many projects, across many different kinds of assets and processing types.

Andy Robinson: You know, we see the industry in general has struggled, I think, a little bit with commissioning and startup activities on many projects across many different kind of asset and processing types. Because what we do at the demo plant is such an excellent kind of mini corollary of what we do at the first commercial plant, it really is this unique training tool. Yeah, we continue to be pretty comfortable kind of incurring expenses there because it's gonna pay off large scale over the next sequence of projects.

Speaker #5: Because what we do at the demo plant is such an excellent kind of mini corollary of what we do at the first commercial plant, it really is this kind of unique training tool.

Speaker #5: And so, yeah, we continue to be pretty comfortable kind of incurring expenses there, because it's going to pay off, sort of large-scale, over the next sequence of projects.

Noel Parks: Great. I mean, just directionally, do you have a sense of sort of over the next few years where you might sort of peak and then plateau out as far as that expense category?

Speaker #6: Great. I mean, just directionally, do you have a sense of, sort of, over the next few years, where you might peak and then plateau out as far as that expense category?

Andy Robinson: Salah can talk about actual costs. You know, I think we intend to keep that demo plant running for kind of the foreseeable future, Noel, until the point that team members are fully transferred, it's served its purpose. You know, there may be some other application for it elsewhere at some point in the future, but that's not been determined to date. It really is intended to be kept running for certainly the foreseeable future to be this critical training tool to allow us to move into a smooth commissioning and ramp up as we can expect to achieve.

Speaker #5: I can let Salah talk about actual costs. I think we intend to keep that demo plant running for kind of the foreseeable future, Noel.

Speaker #5: Until the point that team members are fully transferred, it's served its purpose. And then there may be some other application for it elsewhere at some point in the future.

Speaker #5: But that's not been determined to date. It really is intended to be kept running for, certainly, the foreseeable future to be this critical training tool, to allow us to move into as smooth a commissioning and ramp-up as we can expect to achieve.

Noel Parks: Got it. Yeah, any thoughts on sort of the cost would be great.

Speaker #6: Got it, yeah. And, yeah, any thoughts on sort of the cost would be great.

Salah Gamoudi: No, happy to opine on that, Noel. I would expect that in the future, our demo plan expenses will be very consistent with the expenses that you saw come through during Q4 of this past year.

Speaker #3: No, happy to opine on that, Noel. So I would expect that in the future, our demo plant expenses will be very consistent with the expenses that you saw come through during the fourth quarter of this past year.

Noel Parks: Great. Okay. That's definitely helpful. I guess about my only other one was maybe just again thinking about East Texas. Can you just sort of maybe characterize where you are in the process of the required drilling to gather data in East Texas? I'm assuming that still the focus is very much on delineation, and so just kind of wonder maybe what inning you think you are for establishing, I guess, the baseline for, you know, say, a PFS going forward.

Speaker #6: Great, okay, that's definitely helpful. And I guess about my only other one was maybe just again thinking about East Texas. Can you just sort of maybe characterize where you are in the process of the required drilling to gather data in East Texas?

Speaker #6: I'm assuming that still the focus is very much on delineation, and so I just kind of wondered maybe what inning you think you are in for establishing, I guess, the baseline for, say, a PFS going forward.

Salah Gamoudi: Andy, why don't you take that?

David Park: Andy, why don't you take that?

Andy Robinson: Yeah, sure. Yeah. We've got several project areas in East Texas, Noel. The only one which is sort of public, if you like, is the Franklin project, which is sort of centered on Franklin County. That's the best defined project within our portfolio of projects in East Texas to date, and it's the one that we issued a maiden inferred resource on. That particular project, the Franklin project, where we are right now is we've been engaging in well re-entry work for the last quarter or so, actually two quarters now, Noel, gaining additional reservoir data, resampling the wells, retesting, and starting to get a much more complete understanding of the subsurface. At the same time, we have been doing some additional process testing work on the East Texas brines.

Speaker #1: Andy, why don't you take that?

Speaker #5: Yeah, sure. Yeah. So, we've got several project areas in East Texas, Noel. The only one which is sort of public, if you like, is the Franklin project, which is sort of centered on Franklin County.

Speaker #5: So that's the best-defined project within our portfolio of projects in East Texas to date, and it's the one that we issued a maiden inferred resource on.

Speaker #5: So that particular project, the Franklin Project, where we are right now is we've been engaging in well re-entry work for the last quarter or so—actually, two quarters now, Noel.

Speaker #5: Gaining additional reservoir data, resampling the wells, retesting, and starting to get a much more complete understanding of the subsurface. At the same time, we have been doing some additional process testing work on the East Texas brines.

Andy Robinson: That work will continue, certainly for the next quarter or 2. There is some additional drilling planned within the Franklin project area, that's currently targeted to be later on this year. We're gonna be integrating both that additional process testing work with that additional subsurface exploration work and delineation, along with quite a lot of additional leasing in the Franklin project area with a view to producing kind of the first economic study. A PFS, I think is guiding within the next 12 months. We want it to be as soon as is feasible, Noel.

Speaker #5: That work will continue certainly for the next quarter or two. There is some additional drilling planned within the Franklin project area. That's currently targeted to be later on this year.

Speaker #5: And we're going to be integrating both that additional process testing work with that additional subsurface exploration work and delineation, along with quite a lot of additional leasing in the Franklin project area, with a view to producing kind of the first economic study.

Speaker #5: So, a PFS, I think, as a guiding within the next 12 months. We want it to be as soon as is feasible, Noel. We think it's going to be a very important report for the investors in Standard to truly get a sense of the real value that's present within our East Texas portfolio.

Andy Robinson: We think it's gonna be a very important report for kind of the investors in Standard to truly get a sense of the real value that's present within our East Texas portfolio. It's only one of the projects, but there's a lot of huge unrealized value in our existing portfolio that we really wanna get that out and show it to the market. Great. Actually you mentioned leasing. Are there any new entrants on the scene in East Texas? I think we see more or less the same suite of other companies working in the East Texas area. No, we've not seen anything change substantially in the last sort of three to six months, basically.

Speaker #5: And I'm not only one of the projects, but there's a lot of huge unrealized value in our existing portfolio that we really want to kind of get that out and show it to the market.

Speaker #6: Great. And actually, you mentioned leasing. Are there any new entrants on the scene in East Texas?

Speaker #5: I think we see more or less the same suite of other companies working in the East Texas area. No, we've not seen anything change substantially.

Speaker #5: In the last sort of three, six months, basically. So, I would say leasing activity in general is moving along at a brisk pace. There is competition within the area.

Andy Robinson: I would say leasing activity in general is moving along at a brisk pace. There is competition within the area, but it's maintaining. I would say it's fairly stable as we're seeing it currently. Great. Thanks a lot.

Speaker #5: But it's maintaining—I would say it's fairly stable as we're seeing it currently.

Noel Parks: Great. Thanks a lot.

Speaker #6: Great. Thanks a lot.

Operator: Thank you very much for your question. Your next question and final question comes from the line of Eric Boyes from Evercore. Eric, your line is now open.

Speaker #7: Thank you very much for your question. Your next question, and final question, comes from the line of Eric Boys from Evercore. Eric, your line is now open.

Eric Boyes: Thank you, and just one from me. Can you speak to where you may be seeing any inflationary pressures for Southwest Arkansas CapEx items and how you're going about mitigating those? Thanks.

Speaker #8: Thank you. And just one for me. Can you speak to where you may be seeing any inflationary pressures for Southwest Arkansas, CapEx items, and how you're going about mitigating those?

Andy Robinson: Andy, that one's for you as well. I think you should be taking some of these as well. Hey, Eric. Yeah, look, the FEED study is obviously pretty fresh still. We feel pretty comfortable with where the vendor pricing kind of is relative to what we integrated into that FEED study. As we conclude the EPCC and EPCM contracts, obviously, we have allowed for some price growth and inflationary effects in the final contract amount. You will see, you know, some of that when those are finally announced.

Speaker #8: Thanks.

Speaker #1: Andy, that one's for you as well.

Speaker #5: I think you should be taking some of these as well. Hey, Eric. Yeah, look, the feed study is obviously pretty fresh still, and we feel pretty comfortable with where the vendor pricing kind of is relative to what we integrated into that feed study.

Speaker #5: As we conclude the EPCC and the EPCM contracts, obviously, we have allowed for some price growth and inflationary effects in the final contract amounts.

Speaker #5: So you'll see some of that when those are finally announced. But because we did a very wide and extensive vendor outreach over a very conservative set of kind of engineering assumptions, when we did the FEED work, we're not seeing a lot of actual real price growth in the key vendor packages to date.

Andy Robinson: Because we did a very wide and extensive vendor outreach over a very conservative set of kind of engineering assumptions when we did the FEED work, we're not seeing a lot of actual real price growth in the key vendor packages to date.

Eric Boyes: Appreciate that.

Speaker #8: Appreciate that.

Operator: At this time, there are no further questions. This concludes today's call. Thank you for attending, and you may now disconnect.

Q4 2025 Standard Lithium Ltd Earnings Call

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