Lepidico

AU: LPD

AU$60.2m market cap

AU$0.01 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 patented L-Max® technology recovers lithium economically from less contested 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. A feasibility study for a 7tph (or 5ktpa LCE) plant is underway and scheduled for completion in Q1 CY20. In the meantime, initial results from a pilot plant have confirmed L-Max process viability and product and by-product quality.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 0.2 (5.1) (7.2) 0.0 N/A N/A
2019A 0.0 (4.0) (5.1) 0.0 N/A N/A
2020E 0.0 (5.2) (9.6) 0.0 N/A N/A
2021E 41.1 13.2 2.8 0.0 N/A 13.0
Industry outlook

LPD acquired the rights to LOH-Max technology to produce lithium hydroxide at reduced capex and opex in February 2019. Since then, it has announced the acquisition of the Karibib Lithium Project in Namibia (where a resource update is expected imminently) and a strategic alliance with Gulf Fluor. Together, these have caused us to increase our valuation of the company to A$0.0604/share, based solely on a 7tph Phase 1 plant.

Last updated on 18/02/2020
Share price graph
Balance sheet
Forecast net cash (A$m) 6.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (18.8) (23.5) (40.2)
Relative* (19.1) (27.1) (48.8)
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO