Lepidico

AU: LPD

AU$73.8m market cap

AU$0.02 last close

Lepidico provides exposure to a portfolio of lithium assets via its proprietary IP and upstream interests in Australia, Canada and Europe. Uniquely, it has produced lithium carbonate from non-traditional hard rock lithium bearing minerals using its registered L-Max process technology.

Investment summary

Lepidico’s L-Max® technology recovers lithium from less contested minerals including lepidolite (a form of mica) and amblygonite. The process has been shown to work in stable and continuous operation in large-scale lab tests and a 2017 PFS estimated C1 cash costs of lithium carbonate production near zero net of by-products for a 3,000tpa operation. Engineered design for a larger 7tph (or 5,000tpa LCE) plant is underway as part of a feasibility study, at the same time that a pilot plant is being constructed (on time and on budget) for operation in April to reduce scale-up risk and for product development purposes.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 0.1 (0.8) (5.4) 0.0 N/A N/A
2018A 0.2 (5.1) (7.2) 0.0 N/A N/A
2019E 0.0 (1.0) (3.7) 0.0 N/A N/A
2020E 16.7 2.2 (4.3) 0.0 N/A 150.5
Last updated on 18/02/2019
Industry outlook

Our valuation of Lepidico is substantially based on the unit operating costs of the 3.6t/hour plant and an updated estimate of capex for a 7tph plant. On this basis, we estimate future free cash flow to Lepidico of A$52.0m pa at steady-state, valuing its shares at A$0.0398 apiece after dilution (excluding any potential value for a Phase 2 plant or other development options).

Last updated on 18/02/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 21.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 29.4 29.4 (58.5)
Relative* 24.6 22.1 (59.6)
52-week high/low A$0.1/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO