Stardust Power Inc. (NASDAQ:SDST), a company specializing in nonferrous metal smelting and refining, has entered into a significant engineering agreement with Primero USA, Inc., as per the details of a Form 8-K filed with the SEC on Thursday. The contract, valued at approximately $4.7 million, was signed on Saturday, August 4, 2024, and pertains to the development of Stardust Power's Muskogee Lithium facility located in Oklahoma.
Under the terms of the agreement, Primero will provide a range of professional services including engineering, design, and consultancy. These services are aimed at supporting the procurement of major equipment, engaging third parties for construction, and delivering a Front End Loading-3 (FEL-3) report for the facility. The Muskogee Lithium facility is expected to play a significant role in the company's expansion plans.
The agreement outlines that Primero is to offer periodic updates and products until the completion of the services, which is anticipated to be in the first half of 2025. Stardust Power will make periodic payments upon the execution of the agreement and upon reaching specific milestones detailed in the contract.
InvestingPro Insights
As Stardust Power Inc. (NASDAQ:SDST) embarks on enhancing its Muskogee Lithium facility through a new partnership with Primero USA, Inc., it's essential to consider the company's financial health and market performance. Recent data from InvestingPro shows that Stardust Power has a market capitalization of $584.68 million, indicating a sizeable presence in the nonferrous metal smelting and refining industry. However, the company's financial metrics reveal challenges, with a negative P/E ratio of -19.2 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -121.18, suggesting that the company is not currently profitable.
InvestingPro Tips highlight that Stardust Power's stock has experienced significant volatility, with a notable decline over the last week and a strong return over the last month. This volatility could be a point of consideration for investors interested in the sector. Additionally, the company's short-term obligations exceed its liquid assets, which may pose a risk in terms of financial stability. On the upside, Stardust Power does not operate with a high level of debt, which could provide some financial flexibility as it invests in its expansion plans.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which can offer further insights into Stardust Power's financial health and market potential. These tips can be accessed on the InvestingPro platform and may provide valuable information for making informed investment decisions.
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