Standard Lithium Ltd. (SLI), a company that explores for, develops, and processes lithium brine properties, has surged 8.36% in the premarket trading session. As a result, SLI stock is trading at $8.68 at the time of the writing. On Thursday, SLI closed the day at $8.01 after plummeting 18.84% during regular trading hours. The plunge was attributable to the allegations of short selling against the company.
Why SLI Dipped on Thursday?
On Thursday, numerous law firms commenced investigations against SLI for possible violations of security laws. Blue Orca Capital issued a research report on 18th November 2021. The report alleged that the claims of Standard Lithium to have 90% extraction rates of battery-grade lithium at its Arkansas demonstration plant have no evidence which could back up the claims. The report further alleged that production data submitted by the company to Arkansas Oil & Gas Commission depicts that the plant is attaining a minimal fraction of the project’s recovery rate.
FY 2021 Financial Results
On 28th October, SLI released the annual financial results for the fiscal year 2021. The quarter ended on 30th June 202. The company had cash of $27.98 million on 30th June 2021. The company suffered a loss of $25.26 million from the operations during the period against $9.29 million for the fiscal year 2020. The comprehensive loss bore by the company during the period was $29.9 million (or $0.21 per basic and diluted share) against $7.59 million (or $0.11 per basic and diluted share) for the same period of 2020.
Business Highlights
Alongside the financial results, SLI also reported the business highlights of the quarter. The company enrolled Francis R. Fannon as a strategic advisor during April. It commenced work on a PEA on its South-West Arkansas Project during the early days of May. Besides, during June, they announced the election of LANXESS for the early conversion in full of the Loan. It also reorganized some of its Canadian subsidiaries during June.
Future Outlook for SLI
During the last 6 months, SLI stock has gained more than 140% based on excellent annual results. But these recent allegations of security law violations could prove to be a setback for the company in the long run. Hence, potential investors should keep a close eye on the fluctuations of SLI stock.
