Riley Starts Covering Stardust Power

Riley Financial Inc. (NASDAQ: RILY) has issued a “Buy” rating on Stardust Power Inc. (NASDAQ: SDST), setting a promising price target of $12.00 per share. The diversified financial company recognizes great possibilities in Stardust’s strategies for building one of the largest lithium refineries in the U.S., located in Muskogee, Oklahoma. When fully operational, the refinery is expected to produce an impressive 50,000 metric tons of lithium annually. As final engineering and financing continue, the plant’s strong economic prospects and speedy development schedule have placed Stardust firmly within the lithium market.

Stardust Power has decided to distinguish itself using direct lithium extraction (DLE) technology. B. Riley considers Stardust a unique pick in the lithium industry because DLE could be the next big leap forward. DLE offers significant environmental benefits and efficiency gains, unlike traditional extraction methods. DLE is a much greener, more cost-effective approach that could put Stardust in a position to meet industry standards for more sustainable mining.

At current prices, B. Riley believes Stardust trades below its true value, trading at a 32% price-to-net asset value (P/NAV), implying a lithium price of $18,350 per metric ton. While the Los Angeles-based company has initially applied a cautious 50% P/NAV discount, it’s open to revising this as Stardust hits major milestones for the Muskogee project, adding a sense of potential upside for investors keeping a close eye on the stock.

In addition to the major Muskogee project, Stardust has secured a 90-day exclusivity agreement with KMX Technologies to negotiate using its vacuum membrane distillation (VMD) technology. If Stardust manages to secure exclusive rights, VMD could help it reduce both operating costs and capital needs across its supply chain. The partnership might just give Stardust an edge by keeping expenses low while scaling production.

Furthermore, leadership changes are in motion. Paramita Das, who recently joined as Chief Strategy Officer, is expected to boost Stardust’s commercialization strategy, driving growth as the company moves closer to launching the Muskogee plant. Stardust also secured a $4.7 million engineering contract with Primero USA to assist in design and engineering, a key step with completion set for mid-2025.

Nonetheless, Stardust is facing some challenges. For instance, like many early-stage companies, it’s yet to be profitable, with recent reports showing a loss of $4.59 million in adjusted operating income over the past year. As it approaches production, hitting performance and cost targets will be crucial.

As demand for lithium grows, largely driven by electric vehicles, Stardust is positioned to make an impact. B. Riley’s endorsement signals confidence that Stardust has the potential to become a significant player in U.S. lithium production, especially as it meets critical project milestones and moves toward production.

About BillionDollarClub

BillionDollarClub (“BDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, BDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, BDC brings its clients unparalleled recognition and brand awareness.

BDC is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from BillionDollarClub, text “Billion” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.BillionDollarClub.com

Please see full terms of use and disclaimers on the BillionDollarClub website applicable to all content provided by BDC, wherever published or re-published: https://www.BillionDollarClub.com/Disclaimer

BillionDollarClub
Los Angeles, CA
www.BillionDollarClub.com
310.299.1717 Office
Editor@BillionDollarClub.com

BillionDollarClub is powered by IBN