Lepidico

AU: LPD

AU$79.2m 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 economically from less contested lithium mica minerals such as lepidolite. The process has been shown to work stably in 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 3ktpa operation. Engineered design for a larger 7tph (or 5ktpa LCE) plant is underway as part of a feasibility study (scheduled for completion in Q1 CY20). In the meantime, initial results from a pilot plant (designed to reduce scale-up risk) have confirmed L-Max process viability.

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 (6.0) (6.0) 0.0 N/A N/A
2020E 0.0 (3.1) (7.6) 0.0 N/A N/A
Last updated on 18/09/2019
Industry outlook

In February, LPD acquired the rights to LOH-Max technology to produce lithium hydroxide at both reduced capex and opex. Since then, it has announced the (value accretive) acquisition of Desert Lion, an alliance with Gulf Fluor and a 1 for 9 rights offer to raise A$11.0m. Together, these have caused us to increase our valuation of the company to A$0.0692/share, based on a 7tph Phase 1 plant alone.

Last updated on 18/09/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 6.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (18.2) (33.3) (8.9)
Relative* (21.9) (34.7) (15.9)
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO