Lepidico

AU: LPD

Market CapAU$176m

Last Close AU$0.03

Via its Karibib project in Namibia and unique IP, Lepidico is a vertically integrated lithium development business that has produced both lithium carbonate and lithium hydroxide from non-traditional hard rock lithium-bearing minerals using its registered L-Max and LOH-Max processes.

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Investment summary

Lepidico’s patented technologies produce lithium hydroxide (plus by-products) in an eco-friendly fashion from less contested minerals such as lepidolite. In May 2020, it announced the results of a definitive feasibility study on its Namibian project, which showed an NPV(8%) of US$221m (A$0.05/share) and an IRR of 31% from the production of 4,900tpa battery grade lithium hydroxide (7,060tpa lithium carbonate equivalent (LCE) including by-products) over 14 years.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 0.0 (5.2) (5.1) 0.0 N/A N/A
2020A 0.0 (7.6) (10.8) 0.0 N/A N/A
2021E 4.1 0.4 (0.3) 0.0 N/A 151.0
2022E 0.0 (3.1) (3.8) 0.0 N/A N/A
Industry outlook

Since then, Lepidico has completed the permitting and approvals processes for construction, awarded an EPCM contract to Lycopodium, converted its pilot plant to a demonstration one to reduce scale-up risk and made key personnel appointments. After increasing our long-term lithium price forecasts, we value Lepidico at 6.64c/share plus 0.73–1.77c/share for a risk-adjusted 20,000tpa LCE Phase 2 plant. In the meantime, the US International Development Finance Corporation is evaluating the project for preferential debt financing.

Last updated on 28/06/2022
Content on Lepidico
Lepidico: Aiming at the sweet spot of supply
Metals & mining | blog | 21 June 2022
Lepidico – Big swings and small roundabouts
Metals & mining | research Update | 16 February 2022
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (A$m) 14.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.9) (28.9) 125.0
Relative* 0.1 (20.7) 147.4
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO

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