Lepidico

AU: LPD

Market CapAU$92.3m

Last Close AU$0.02

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 a range of by-products from less contested minerals such as lepidolite. Technically, its project has been de-risked by a successful pilot plant campaign and, in May 2020, it announced the results of a definitive feasibility study (DFS) to produce c 4,900t of battery grade lithium hydroxide monohydrate pa (7,800tpa LiOH equivalent) 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 (4.0) (5.1) 0.0 N/A N/A
2020A 0.0 (4.9) (10.8) 0.0 N/A N/A
2021E 4.1 1.1 (0.4) 0.0 N/A 28.5
2022E 0.0 (25.6) (26.7) 0.0 N/A N/A
Industry outlook

The DFS calculated a project NPV(8%) of US$221m and a 31% IRR after initial capex of US$139m. Since then, Lepidico has advanced the project to development status by awarding an EPCM contract to Lycopodium, concluding offtake agreements and (effectively) completing the permitting and approvals process. Recently, it has also raised A$12.5m in equity, after which we valued the shares at 4.96c/share plus a potential 0.61–1.53c/share for a risk-adjusted 20,000tpa LCE Phase 2 plant. In the meantime, the US DFC is evaluating the project for potential preferential debt financing.

Last updated on 26/07/2021
Content on Lepidico
Lepidico – Phase 2 coming into view
Metals & mining | Update | 18 June 2021
Lepidico – Fine tuning the mine and chemical plant
Metals & mining | Update | 21 April 2021
Lepidico – Convertible bond acquired with DLI fully retired
Metals & mining | Update | 8 December 2020
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (A$m) 17.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 25.0 (16.7) 114.3
Relative* 23.5 (20.6) 71.8
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO