Stardust Power (SDST) Q3 2024 earnings summary

Executive summary

• Announced and advanced construction of a major lithium refinery in Muskogee, Oklahoma, with a phased approach targeting up to 50,000 metric tons annual capacity to address U.S. supply chain security and energy transition needs.

• Completed business combination with Global Partner Acquisition Corp II in July 2024, resulting in a Nasdaq listing, recapitalization, and $12 million raised in conjunction with the listing.

• Raised $10.1 million through PIPE financing, $1.6 million from warrant exercises, and entered a $50 million equity purchase agreement with B. Riley Principal Capital II.

• Hired key executives, including a Chief Strategy Officer and Chief Commercial Officer, and entered a 90-day exclusivity period with KMX Technologies for advanced brine concentration technology.

• Engaged MUFG Bank as lead financial advisor and advanced engineering and permitting milestones for the refinery.

Financial highlights

• Pre-revenue stage; net loss of $10.1 million for Q3 2024 and $14.2 million for the nine months ended September 30, 2024, up from $0.8 million and $2.8 million in the prior year, due to higher post-listing and administrative expenses.

• Loss per share was $0.22 for Q3 2024, compared to $0.02 for Q3 2023.

• Cash and cash equivalents of $1.6 million as of September 30, 2024, with zero long-term debt.

• Net cash used in operating activities was $8.5 million for the nine months ended September 30, 2024.

• Net cash provided by financing activities was $10.1 million for the nine months ended September 30, 2024.

Outlook and guidance

• No forward-looking guidance or estimates provided, but management is confident in long-term lithium demand and expects profitability under a range of market conditions.

• Facility design and business model are not dependent on government incentives, though such incentives would be beneficial.

• Management expects continued significant operating losses and cash outflows until commercial production begins, with substantial doubt about the ability to continue as a going concern without additional capital.