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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Lepidico’s patented technologies produce lithium hydroxide plus a range of by-products in an eco-friendly fashion 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 (7,060tpa LCE including by-product credits) 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 | 47.6 |
| 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 and (effectively) completing the permitting and approvals process. After raising A$12.5m in equity recently, we valued the shares at 4.96c/share plus a potential 0.61–1.53c/share for a risk-adjusted 20,000tpa LCE Phase 2 plant. In the meantime, the US DFC is evaluating the project for potential preferential debt financing and binding product offtakes are well advanced.
Last updated on 22/09/2021Content on Lepidico
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Metals & mining
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| Forecast net cash (A$m) | 17.7 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Joe Walsh | CEO |
| Shontel Norgate | CFO |