Standard Lithium Ltd 6-K, filed May 13, 2022

About this 6-K

Standard Lithium Ltd. (SLI)

6-K 2022-05-13 For: 2022-03-31

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Added on April 12, 2026

Standard Lithium Ltd.

(Registrant)

May 13, 2022

/s/ Robert Mintak

Robert Mintak

CEO and Director

Standard Lithium Ltd filed this 6-K on May 13, 2022.

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Exhibit

99.1		Interim Consolidated Financial Statements for the nine months ended March 31, 2022
99.2		Management’s Discussion and Analysis of Results of Operations and Financial Condition for the nine months ended March 31, 2022
99.3		Form 52-109F2, Certification of Interim Filings (CEO)
99.4		Form 52-109F2, Certification of Interim Filings (CFO)


		March 31, 2022 (unaudited)		June 30, 2021 (audited)
ASSETS
Current assets
Cash	$	136,913,330	$	27,988,471
Receivables		191,286		139,396
Prepaid expenses		2,034,479		249,671
		139,139,095		28,377,538
Non-current assets
Reclamation deposit (Note 4)		78,299		77,660
Exploration and evaluation assets (Note 3)		34,100,064		31,590,194
Intangible asset (Note 5)		1,548,168		1,691,575
Pilot plant (Note 6)		2,583,036		12,338,741
Asset under construction – Commercial plant (Note 7)		990,172		-
Right of use asset (Note 8)		321,400		-
Deposits		12,415		-
		39,633,554		45,698,170
TOTAL ASSETS	$	178,772,649	$	74,075,708

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	4,476,918	$	2,408,302
Lease liability – short-term (Note 8)		39,965		-
		4,516,883		2,408,302
Non-current liabilities
Decommissioning provision (Note 10)		124,960		123,940
Lease liability – long-term (Note 8)		285,394		-
TOTAL LIABILITIES		4,927,237		2,532,242

EQUITY
Share capital (Note 11)		254,725,748		122,996,406
Reserves (Note 11)		21,416,947		19,563,420
Deficit		(100,285,384)		(68,617,507)
Accumulated other comprehensive loss		(2,011,899)		(2,398,853)
TOTAL EQUITY		173,845,412		71,543,466
TOTAL LIABILITIES AND EQUITY	$	178,772,649	$	74,075,708


“Robert Mintak”		“Dr. J. Andrew Robinson”
Director		Director


	Three months ended March 31,				Nine months ended March 31,
		2022		2021		2022		2021
Administrative Expenses

Advertising and investor relations	$	156,068	$	220,383	$	271,132	$	360,467
Amortisation – intangible asset (Note 5)		47,103		47,105		143,407		143,407
Amortisation – office lease (Note 8)		31,103		—		51,840		—
Amortisation – pilot plant (Note 6)		3,906,410		3,310,466		11,249,269		8,035,456
Carbon capture research & development		—		—		10,138		—
Consulting fees		1,262,673		228,027		2,024,676		626,184
Filing and transfer agent		365,613		34,617		552,233		113,966
Foreign exchange		1,669,944		(62,925)		1,933,145		(664,251)
Management fees (Note 12)		1,484,715		342,721		2,224,949		1,194,159
Office and administration		696,073		184,656		1,924,468		373,790
Patent		91,017		47,304		327,177		153,509
Pilot plant operations (Note 6)		1,489,602		1,103,315		5,770,808		3,072,222
Preliminary economic assessment		—		15,380		87,130		15,380
Professional fees		940,955		141,552		1,623,826		351,803
Project investigation		310,104		65,841		885,964		65,841
Share-based payments (Notes 11 and 12)		1,323,477		4,077,810		2,510,322		4,369,031
Travel		52,174		400		177,801		458

Loss from operations before other items		(13,827,031)		(9,756,652)		(31,768,285)		(18,211,422)
Other (expenses) income
Interest income, net of fees		91,937		—		110,514		—
Interest and accretion expense		(5,890)		(45,782)		(10,106)		(142,609)
		86,047		(45,782)		100,408		(142,609)
Net loss		(13,740,984)		(9,802,434)		(31,667,877)		(18,354,031)
Other comprehensive gain/(loss)
Item that may be reclassified subsequently
to income or loss:
Currency translation differences
of foreign operations		(546,300)		(543,331)		386,954		(3,840,170)
Total comprehensive loss		(14,287,284)		(10,345,765)		(31,280,923)		(22,194,201)
Basic and diluted loss per share	$	(0.08)	$	(0.07)	$	(0.21)	$	(0.16)

Weighted average number of common shares outstanding – basic and diluted		162,264,667		131,278,932		148,063,938		116,861,235


	Number of shares	Share capital		Reserves		Deficit		Accumulated other comprehensive income (loss)		Total equity
Balance, June 30, 2020	105,497,320	$	70,990,300	$	15,716,067	$	(43,183,131)	$	2,073,460	$	45,596,696
Share-based payments	-		-		4,369,031		-		-		4,369,031
Shares issued for private placement, net of costs	15,697,500		31,867,688		-		-		-		31,867,688
Shares issued for evaluation & exploration assets	500,000		1,025,000		-		-		-		1,025,000
Warrants exercised	9,856,504		9,030,930		-		-		-		9,030,930
Stock options exercised	1,325,000		2,142,425		(938,425)		-		-		1,204,000
Net loss for the period	-		-		-		(18,354,031)		-		(18,354,031)
Currency translation differences for foreign operations	-		-		-		-		(3,840,170)		(3,840,170)
Balance, March 31, 2021	132,876,324	$	115,056,343	$	19,146,673	$	(61,537,162)	$	(1,766,710)	$	70,899,144

Balance, June 30, 2021	141,166,203	$	122,996,406	$	19,563,420	$	(68,617,507)	$	(2,398,853)	$	71,543,466
Share-based payment	-		-		2,510,322		-		-		2,510,322
Shares issued for private placement, net of costs	13,480,083		118,240,689		2,211,663		-		-		120,452,352
Share issuance costs	-		(255,431)		-		-		-		(255,431)
Warrants exercised	6,684,892		7,389,127		-		-		-		7,389,127
Stock options exercised	2,910,784		5,854,957		(2,868,458)		-		-		2,986,499
Compensation shares issued	60,235		500,000		-		-		-		500,000
Net loss for the period	-		-		-		(31,667,877)		-		(31,667,877)
Currency translation differences for foreign operations	-		-		-		-		386,954		386,954
Balance, March 31, 2022	164,302,197	$	254,725,748	$	21,416,947	$	(100,285,384)	$	(2,011,899)	$	173,845,412


		Nine Months Ended
		March31,		March 31,
		2022		2021
Cash flows from (used in) operating activities
Net loss	$	(31,667,877)	$	(18,354,031)
Add items not affecting cash
Share-based payments		2,510,322		4,369,031
Interest accrued		-		73,927
Foreign exchange		(129,395)		(793,790)
Amortisation – pilot plant		11,249,269		8,035,456
Amortisation – intangible asset		143,407		143,407
Amortisation – office lease		51,839		-
Interest expense		10,106		-
Net changes in non-cash working capital items to operations:
Receivables		(51,891)		(107,133)
Prepaid expenses		(1,758,404)		(57,375)
Accounts payable and accrued liabilities		1,271,411		227,567
Compensation shares issued		500,000		-
Net cash used in operating activities		(17,871,213)		(6,462,941)

Cash flows used in investing activities
Exploration and evaluation assets		(2,069,120)		(5,535,052)
Pilot plant		(666,308)		(3,982,092)
Commercial plant development		(983,062)		-
Net cash used in investing activities		(3,718,490)		(9,517,144)

Cash flows from financing activities
Proceeds from private placement, net of costs		120,452,352		31,867,688
Share issuance costs		(255,431)		-
Exercise of warrants		7,389,127		9,030,930
Exercise of options		2,986,499		1,204,000
Lease payments		(57,986)		-
Net cash from financing activities		130,514,562		42,102,618

Net change in cash		108,924,859		26,122,533
Cash, beginning of period		27,988,471		4,141,494
Cash, end of period	$	136,913,330	$	30,264,027


	California	Arkansas
	Property $	Property $	Total $
Acquisition costs:
Balance, June 30, 2020	9,753,766	12,273,322	22,027,088
Acquisition of property	3,897,975	945,501	4,843,476
Effect of movement in foreign exchange rates	(883,192)	(1,111,336)	(1,994,528)
Balance, June 30, 2021	12,768,549	12,107,487	24,876,036
Acquisition of property	128,992	1,255,298	1,384,290
Effect of movement in foreign exchange rates	105,082	99,755	204,837
Balance, March 31, 2022	13,002,623	13,462,540	26,465,163

Exploration Costs:
Balance, June 30, 2020	4,554,718	2,366,542	6,921,260
Other exploration costs	10,757	408,853	419,610
Effect of movement in foreign exchange rates	(412,424)	(214,287)	(626,711)
Balance, June 30, 2021	4,153,051	2,561,108	6,714,159
Other exploration costs	12,616	852,870	865,486
Effect of movement in foreign exchange rates	34,178	21,078	55,256
Balance, March 31, 2022	4,199,845	3,435,056	7,634,901

Balance, June 30, 2021	16,921,600	14,668,594	31,590,194
Balance, March 31, 2022	17,202,468	16,897,596	34,100,064


	$
Consideration paid
Cash	300,000
Fair value of 500,000 common shares issued at closing date	475,000
Fair value of promissory note payable due six months after closing date	226,391
Cash payable on or before the Investment Date	375,657
Fair value of 500,000 common shares issuable on or before the Investment Date	475,000
Total consideration paid	1,852,048
Legal fees capitalized in connection with the acquisition of 2661881	58,301
Balance, June 30, 2019	1,910,349
Amortisation	(27,740)
Balance, June 30, 2020	1,882,609
Amortisation	(191,034)
Balance, June 30, 2021	1,691,575
Amortisation	(143,407)
Balance, March 31, 2022	1,548,168


	$
Balance at June 30, 2019	-
Costs transferred from asset under construction	25,964,026
Decommissioning provision	136,280
Amortisation	(3,722,862)
Balance at June 30, 2020	22,377,444
Additions	2,764,138
Amortisation	(11,360,466)
Effect of movement in foreign exchange rates	(1,442,375)
Balance at June 30, 2021	12,338,741
Additions	1,279,723
Amortisation	(11,249,269)
Effect of movement in foreign exchange rates	213,841
Balance at March 31, 2022	2,583,036


		Three months ended March 31,				Nine months ended March 31,
		2022		2021		2022		2021
Internet	$	2,745	$	2,829	$	8,236	$	8,486
Personnel		872,247		752,771		2,571,454		2,298,447
Reagents		305,722		46,994		1,060,045		160,607
Repairs and maintenance		63,981		12,251		247,854		71,311
Supplies		80,423		27,300		726,859		51,425
Testwork		73,890		206,302		457,106		287,923
Office trailer rental		8,064		7,275		23,557		21,220
Utilities		75,394		73,147		675,697		172,803
Foreign exchange		7,136		(25,554)		-		-
Total pilot plant operations costs		1,489,602		1,103,315		5,770,808		3,072,222


	$
Balance at June 30, 2021	-
Additions	427,263
Discount on future commitment	(54,023)
Lease liability at March 31, 2022	373,240


	$
Beginning balance at June 30, 2019	-
Initial recognition	4,641,796
Interest and accretion expense	132,034
Foreign exchange loss	181,670
Balance at June 30, 2020	4,955,500
Interest and accretion expense	173,662
Foreign exchange gain	(594,788)
Common shares issued for conversion	(4,353,088)
Interest paid	(181,286)
Balance at June 30, 2021 and March 31, 2022	-


	Number of warrants	Weighted average exercise price
Balance at June 30, 2020	18,074,695	0.98
Expired	(141,317)	1.00
Exercised	(11,245,133)	0.93
Issued	3,125,625	1.20
Balance at June 30, 2021	9,813,870	1.13
Issued	336,877	11.09
Exercised	(6,684,892)	1.12
Expired	(3,353)	1.30
Balance at March 31, 2022	3,462,502	2.16


		2022			2021
Annualized volatility		161	%		114	%
Risk-free interest rate		1.74	%		0.56	%
Dividend rate		0	%		0	%
Expected life of options		4 years			4 years
Forfeiture rate		0	%		0	%
Share price on grant date	$	7.37		$	3.41


	Number of options		Weighted average exercise price
Balance at June 30, 2020	13,525,784	$	0.99
Options exercised	(1,375,000)		0.90
Options granted	1,600,000		3.40
Balance at June 30, 2021	13,750,784		1.29
Options exercised	(2,910,784)		0.98
Options granted	1,070,000		7.15
Balance at March 31, 2022	11,910,000		1.87


	Options Outstanding			Options Exercisable
		Weighted	Weighted		Weighted
		Average	Average		Average
Exercise	Number	Remaining	Exercise		Exercise
Price	of	Contractual Life	Price	Number	Price
$	Shares	(years)	$	Exercisable	$
0.96	1,740,000	0.21	0.96	1,740,000	0.96
2.10	450,000	0.90	2.10	450,000	2.10
1.40	1,900,000	1.43	1.40	1,900,000	1.40
0.75	150,000	1.55	0.75	150,000	0.75
0.76	4,450,000	0.94	0.76	4,450,000	0.76
0.75	450,000	1.88	0.75	450,000	0.75
0.81	100,000	1.12	0.81	100,000	0.81
3.39	1,200,000	3.81	3.39	1,200,000	3.39
3.43	400,000	2.04	3.43	400,000	3.43
6.08	200,000	4.31	6.08	200,000	6.08
7.55	500,000	2.88	7.55	125,000	7.55
6.31	200,000	4.93	6.31	-	-
8.25	170,000	4.96	8.25	-	-
	11,910,000	2.32	1.87	11,165,000	1.87


		March 31, 2022		March 31, 2021
Management fees	$	2,224,949	$	1,194,159
Share-based payments		940,268		4,072,365
	$	3,165,217	$	5,266,524


March 31, 2022	Level 1		Level 2		Level 3		Total
Cash	$	136,913,330	$	-	$	-	$	136,913,330


June 30, 2021	Level 1		Level 2		Level 3		Total
Cash	$	27,988,471	$	-	$	-	$	27,988,471


	March 31, 2022 $	June 30, 2021 $
Cash	113,997,420	736,623
Accounts payable	(2,450,239)	(1,520,823)

Stage of Development	Description	Cost (US$)
Phase 1	South Lithium Chloride Plant	106,886,000
		Central Lithium Carbonate Plant – Train № 1	27,711,000
		Pipelines	2,340,000
		Contingency 25%	34,234,000
		Phase 1 Subtotal	171,171,000
Phase 2	West Lithium Chloride Plant	99,393,000
		Central Lithium Carbonate Plant – Train № 2	25,769,000
		Pipelines	3,780,000
		Contingency 25%	32,236,000
		Phase 2 Subtotal	161,178,000
Phase 3	Central Lithium Chloride Plant	66,589,000
		Central Lithium Carbonate Plant – Train № 3	17,261,000
		Contingency 25%	20,963,000
		Phase 3 Subtotal	104,813,000
		CAPEX TOTAL	437,162,000


Description	Phase 1 (US$)	Phase 2 (US$)	Phase 3 (US$)
Manpower	3,745,000	5,680,000	6,710,000
Electrical Power	4,040,000	7,306,000	9,097,000
Reagents & Consumables	30,138,000	55,615,000	64,936,000
Water	496,000	916,000	1,070,000
Natural Gas	582,000	1,074,000	1,254,000
Miscellaneous Direct Expenditures	605,000	1,098,000	1,299,000
Sustaining Capital Cost	1,199,000	2,314,000	3,061,000
Brine Transportation	48,000	123,000	123,000
Land lease	100,000	200,000	300,000
Subtotal	40,953,000	74,326,000	87,849,000
Indirect Operational Expenditures	1,009,000	1,901,000	2,410,000
TOTAL	41,962,000	76,227,000	90,259,000


Overview	Units	Values	Comments
Production	tpy	20,900	At completion of Phase 3 production
Plant Operation	years	25	From the start of Phase 1 production
Capital Cost (CAPEX)	US$	437,162,000
Annual Operating Cost (OPEX)	US$	90,259,000	At completion of Phase 3 production
Average Selling Price	US$/t	13,550
Annual Revenue	US$	283,195,000
Discount Rate	%	8
Net Present Value (NPV) Post-Tax	US$	989,432,000
Net Present Value (NPV) Pre-Tax	US$	1,304,766,000
Internal Rate of Return (IRR) Post-Tax	%	36.0
Internal Rate of Return (IRR) Pre-Tax %	%	41.8

	Upper Smackover Formation		Middle Smackover Formation		Total (and main resource)^[1,2]
Parameter	South Resource Area	North Resource Area	South Resource Area	North Resource Area
Aquifer Volume (km³)	2.852	4.226	0.704	1.080	8.862
Brine Volume (km³)	0.281	0.416	0.071	0.110	0.878
Average Lithium concentration (mg/L)	399	160	399	160	255
Average Porosity	10.1 %	10.1 %	10.3 %	10.3 %	10.1 %
Total Li inferred resource (as metal) metric tonnes ^[4][5]	112,000	67,000	28,000	18,000	225,000
Total LCE inferred resource (metric tonnes)^[4][5]	596,000	354,000	152,000	93,000	1,195,000

Description	Direct Costs Million US$^[1]	Indirect Costs Million US$^[2]
Extraction and Reinjection Wellfield^[3]	204.9	2.3
Pipelines^[3]	38.7	2.5
Receiving/Pre-Treatment	35.4	28.1
Lithium Extraction (LiSTR)	135.0	103.8
Lithium Hydroxide Conversion	90.9	39.9
Utilities/Infrastructure	26.9	28.5
Contingency	133.0^[4]	-
Total	664.8	205.1
CAPEX TOTAL	US$869.9 million

Description	Operating Cost US$/tonne LHM^[1]
Workforce^[2]	190
Electrical Power^[3]	378
Reagents and Consumables^[4]	836
Natural Gas^[5]	39
Maintenance/Waste Disposal/Misc^[6]	563
Indirect Operational Costs^[7]	110
Royalties and Land/Lease Costs^[8]	482
OPEX Total	2,599

Description	Units	Values
Average Annual Production (as LiOHH₂O)	tpa^[1]	30,000^[2]
Plant Operation	years	20
Total Capital Cost (CAPEX)	US$	869,868,000^[3]
Operating Cost (OPEX) per year	US$/yr	77,972,000^[4]
OPEX per tonne	US$/t	2,599
Initial Selling Price	US$/t	14,500^[5]
Average Annual Revenue	US$	570,076,000^[6]
Discount Rate	%	8.0
Net Present Value (NPV) Pre-Tax	US$	2,830,190,000
Net Present Value (NPV) Post-Tax	US$	1,965,427,000
Internal Rate of Return (IRR) Pre-Tax	%	40.5
Internal Rate of Return (IRR) Post-Tax	%	32.1

LHM Price in 2021^[1](US$/t)	Post-Tax NPV (US$ Million)	Post-Tax IRR
12,500	1,544.7	27.6%
13,500	1,755.1	29.9%
14,500	1,965.4	32.1%
15,500	2,175.8	34.2%
16,500	2,386.1	36.3%

Risk No.	Risk Description	Existing Controls	Initial Risk (after Existing Controls)	Risk Treatment Plan	Residual Risk
3	If electrochemical and associated Lithium Hydroxide conversion process does not perform as expected, it could result in higher OPEX and CAPEX.	Based on existing chloralkali industry technology and specific experience with Lithium solutions.	Medium	Long-term membrane testing with representative enriched LiCl solution planned, as well as pilot testing of commercial-scale electrochemical cells.	Low
4	If market price of LHM drops, project economics will be negatively affected.	Demand is increasing faster than supply is coming to the market. Sensitivity analysis shows favourable economics even for significantly lower Lithium Hydroxide price.	High	To evaluate alternate contracts with vendors to mitigate short term price decline.	High
5	Global supply chain shortages / delays could influence schedule and CAPEX	Understanding long-lead items that would be impacted by supply chain constraints	Medium	A mitigating action plan will be put in place to minimize supply chain risk.	Low
6	If natural disaster occurs (e.g., tornado, earthquake), could result in loss of production.	Understanding of current risks at plant location.	Medium	Engineering of the plant will take into account weather risks. Provide shelter for personnel. Design critical facilities to withstand moderate tornados and earthquakes. Carry special insurance.	Low
7	If unknown infringement of sorbent and process patents occurs, could result in licensing claims.	Conducted freedom to operate searches.	Medium	Continue patent research. Ensure contingency funds in place to cover licensing fees.	Low
8	Construction cost/schedule overruns	25% contingency included in current economics. Sensitivity analysis shows favourable economics even for higher CAPEX	Medium	Work with experienced EPC contractor; lump-sum turnkey where possible. PFS will provide improved cost confidence.	Low
9	Lithium brine royalty assessment by the Arkansas Oil and Gas Commission is not completed in a timely manner and/or the royalty rates overly impact project economics.	Established process completed for bromine and most recently for calcium chloride and magnesium chloride	Medium	Work with experienced and qualified team and engage stakeholders early in the process.	Low

Quarter Ended	Total Revenues	Net Income/(Loss)	Earnings/(Loss) Per share
June 30, 2020	$Nil	$ (4,468,997)	$ (0.05)
September 30, 2020	$Nil	$ (2,787,507)	$ (0.04)
December 31, 2020	$Nil	$ (5,764,090)	$ (0.05)
March 31, 2021	$Nil	$ (9,802,434)	$ (0.07)
June 30, 2021	$Nil	$ (7,080,345)	$ (0.05)
September 30, 2021	$Nil	$ (9,358,988)	$ (0.07)
December 31, 2021	$Nil	$ (8,567,905)	$ (0.06)
March 31, 2022	$Nil	$ (13,740,984)	$ (0.08)


		March 31, 2022		March 31, 2021
Non-Executive Chair of the Board due to Paloduro Investments Inc.	$	75,405	$	68,750
President and Chief Operating Officer due to Green Core Consulting Ltd.		726,637		350,000
Chief Executive Officer due to Rodhan Consulting & Management Services		726,633		350,000
Due to Varo Corp Capital Partners Inc.		204,138		232,500
Director due to JSB Investments Inc.		69,155		68,750
Director due to New Age Ventures LLC		69,155		-
Chief Financial Officer due to Kara Norman		353,826		124,158
Share-based payments		940,268		4,072,365
	$	3,165,217	$	5,266,524

/s/ “Robert Mintak”
Robert Mintak
Chief Executive Officer
Standard Lithium Ltd.

/s/ “Kara Norman”
Kara Norman
Chief Financial Officer
Standard Lithium Ltd.