Lepidico

AU: LPD

Market CapAU$153.8m

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 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 22/09/2021
Content on Lepidico
Watch Lepidico ETV: The alternative to a complex portfolio
Metals & mining | Edison TV | 7 September 2021
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
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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 31.6 127.3 212.5
Relative* 33.9 127.2 145.8
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO