"Patience is a Super Power" - "The Money is in the waiting"
Showing posts with label Texas. Show all posts
Showing posts with label Texas. Show all posts

Saturday, October 11, 2025

Lithium is the new oil AND, Smackover is America's new wellhead!

 


Investment Report: Smackover Lithium Project

Joint Venture between Standard Lithium Ltd. (NYSE: SLI / TSX-V: SLI) and Equinor ASA (NYSE: EQNR)


🧭 Executive Summary

As America and China continue to lock horns over critical minerals and strategic materials, smaller North American players — Standard Lithium (SLI), Critical Metals Corp (CRML), Ucore Rare Metals (UCU), MP Materials (MP), and Avalon Advanced Materials (AVL) — are poised to thrive. These companies control valuable deposits of lithium, rare earths, and other critical minerals that underpin the global energy transition.

Among them, the Smackover Lithium Project stands out as one of the most strategically positioned and technically advanced lithium ventures in North America. With Standard Lithium as operator and Equinor ASA as a 45% partner, this project is well‑funded, technologically mature, and fully aligned with U.S. energy independence and clean‑tech industrial policy goals.


🌍 Geological & Strategic Context

🔹 The Smackover Formation

  • A geological giant stretching across the Gulf Coast Basin, running through southern Arkansas and eastern Texas.

  • Formed by porous carbonate rock layers that host brine rich in lithium and other dissolved minerals.

  • Already home to a mature industrial brine extraction ecosystem, historically focused on bromine production — creating ideal infrastructure for lithium development.

🔹 Project Zones

  • Southwest Arkansas (SWA) Project: Core area of lithium concentration with average 437 mg/L lithium; planned capacity of 30,000 tonnes/year battery‑grade LiOH.

  • East Texas Project: Expanding zone where brine samples have shown up to 806 mg/L lithium concentrations.

  • Both project areas are contiguous within the subsurface Smackover geological system, forming a unified development corridor.


⚙️ Technology & Operations

Direct Lithium Extraction (DLE)

  • Proprietary process developed by Standard Lithium; continuously operated pilot plant in El Dorado, AR since 2020.

  • >99% lithium recovery demonstrated, with minimal land and water use compared to evaporation ponds.

  • Produces high‑purity lithium hydroxide suitable for EV batteries.

  • Significantly shorter production cycles and lower carbon footprint.


🤝 Joint Venture Structure — "Smackover Lithium"

PartnerRoleOwnership
Standard Lithium (SLI)Project operator, technology owner55%
Equinor ASA (EQNR)Strategic investor, subsurface & capital partner45%
  • Equinor committed:

    • $30M upfront payment

    • $60M development work program

    • Up to $70M in milestone-based performance payments

  • DOE Grant: $225M awarded (January 2025) for Phase 1 SWA construction.

  • Operating JV name: Smackover Lithium — a separate entity governed jointly, designed to scale projects across the Smackover Basin.


💰 Financial and Partner Strength

Standard Lithium Ltd. (SLI)

  • Cash reserves: $31.2M (Dec 2024)

  • Debt: None

  • 100% operator of Smackover Lithium JV assets

  • Positioned as one of the few pure‑play U.S. lithium developers

Equinor ASA (EQNR)

  • Market Cap: ~$90B

  • P/E: 7.8×

  • P/S (TTM): 0.6

  • P/CF (TTM): 3.6×

  • Operating Margin: 28.4%

  • Dividend Yield: 8.4%

  • Strategic energy supermajor from Norway with deep pockets and global project execution capacity.

  • Expanding beyond hydrocarbons into low‑carbon, critical‑minerals, and hydrogen sectors.

“Energy – Europe – America – Equinor ASA. P/E 7.8x, Dividend 8.4% — Nuff Said.”


🧱 Development Roadmap

MilestoneTimelineStatus
JV Formation with EquinorQ1 2025✅ Completed
DOE $225M Grant SecuredQ1 2025✅ Completed
FEED & Engineering StudiesQ2–Q3 2025🔄 In Progress
Construction Start (SWA Phase 1)Late 2025 – Early 2026🔜 Planned
East Texas Resource Expansion2025–2026🔄 Active
Commercial Production Launch2027 (est.)🕒 Target

📈 Investment Thesis

  1. Strategic Resource Control: SLI and Equinor control one of North America’s richest lithium brine systems.

  2. Government Support: DOE grant validates technical and geopolitical importance.

  3. Technology Edge: Proven DLE technology de‑risks extraction and accelerates scalability.

  4. Institutional Partner: Equinor’s financial strength ensures long‑term project execution.

  5. Critical Mineral Supercycle: Geopolitical friction between the U.S. and China will continue to amplify the value of domestic lithium production.

We are long both SLI and EQNR. The combination of technology, capital, and national priority creates a unique, asymmetric upside in the North American lithium sector.


⚠️ Risks & Mitigations

RiskImpactMitigation
DLE Scale-Up RiskTechnical challenge in commercial scalingMulti‑year pilot proven, DOE oversight ensures compliance
Permitting/RegulatoryPotential local or state delaysFavorable Arkansas regulatory climate; existing brine infrastructure
Lithium Price VolatilityMarket-driven revenue swingsU.S. IRA incentives, potential offtake contracts, DOE-supported floor pricing
CapEx InflationRising material costsEquinor funding cushions; DOE grant offsets 20–30% of initial capex

🌎 Macro Context: The Critical Mineral Rivalry

The U.S.–China rivalry over energy transition materials has escalated into a strategic resource race. Lithium, nickel, and rare earths have emerged as the new oil — essential to EVs, grid storage, and defense applications.

Small-cap developers like SLI, CRML, UCU, MP, and AVL occupy a unique sweet spot:

  • They own the feedstock of the next industrial era.

  • They are becoming acquisition targets for major energy and materials firms (e.g., Equinor, ExxonMobil, Rio Tinto).

  • They provide investors with exposure to critical mineral leverage without megacap dilution.


🧩 Conclusion

The Smackover Lithium Project is more than a single asset — it is a strategic partnership between innovation (SLI) and institutional power (Equinor), underpinned by U.S. government backing.

With world-class geology, proven technology, strong partners, and policy tailwinds, Smackover Lithium is positioned to become a cornerstone of America’s clean energy supply chain.

→ In short:

Lithium is the new oil. Smackover is America’s wellhead.



Monday, October 6, 2025

As the U.S. Government invests more and more in precious metals and Lithium, I think it's possible that, Standard Lithium, $SLI could be next!

 


Equinor is their backer with a big share of the "Smackover" project,
Which is situated in both Texas and Arkansas.
We are long SLI and also long EQNR and here's why...


Energy - Europe - America - Equinor ASA NYSE: $EQNR
P/E Ratio 7.8x - Price/Sales (TTM) 0.6 - Price/Cash Flow (TTM) 3.6x
Operating Margin 28.4% - Dividend 8.4% - Nuff Said!!!
https://lnkd.in/gn52ddc9
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Tuesday, November 18, 2014

IBC Advanced Alloy Moves to Broaden US Institutional Investor Outreach

IBC Advanced Alloys Corp.IBC Advanced Alloys Corp.

TSX VENTURE : IB
OTCQX : IAALF




November 18, 2014 09:00 ET

IBC Advanced Alloys Engages Stonegate Inc.




VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 18, 2014) - IBC Advanced Alloys Corp. (TSX VENTURE:IB)(OTCQX:IAALF) announces that it has retained the services of Stonegate Inc. to provide investor relations services to the Company with a specific focus on the US small-cap institutional investment community.
Stonegate Inc. is a 40-year-old investor relations, research and investment banking firm based in Dallas, Texas. Its research covers companies in a variety of industries and is distributed to its wide network of institutional investors. Stonegate's primary focus is assisting small cap companies to achieve their capital markets objectives and to both increase and strengthen their institutional shareholder base.
Anthony Dutton, President and CEO of IBC commented, "With increasing interest from the aerospace and precision manufacturing sectors, now is the ideal time to introduce IBC to targeted US institutional investors. We understand their investment criteria, are confident we are meeting those criteria, and we believe Stonegate is a great fit for us because of their expertise in this sector. We look forward to working with them and have targeted early December for our first investor presentations."
In connection with the engagement, Stonegate will receive US$5,000 per month commencing November 17, 2014. The term of the agreement is six months and may be cancelled subsequently, in writing, with standard notice provisions. The agreement is subject to the acceptance of the TSX Venture Exchange.
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 80 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. IBC is creating a dynamic global beryllium and advanced alloys company. IBC's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQX under the symbol "IAALF."
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

Contact Information


IBC Advanced Alloys Corp.
Ian Tootill
Director of Corporate Communications
(604) 685-6263 ext. 110
itootill@ibcadvancedalloys.com
www.ibcadvancedalloys.com

The Howard Group Inc.
Dave Burwell / Brad Dryer
Toll Free: 1-888-221-0915 or (403) 221-0915
info@howardgroupinc.com

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