Lepidico

AU: LPD

AU$32.4m 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. A 2017 PFS on the process estimated C1 cash costs of lithium carbonate at near zero net of by-products for a 3ktpa operation and 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 7.0
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 it has since effectively upgraded all of the Rubicon 1 and Helikon 1 inferred resources into the measured & indicated categories) and a strategic alliance with Gulf Fluor. Together, these 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 27/03/2020
Share price graph
Balance sheet
Forecast net cash (A$m) 6.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (41.7) (53.3) (72.7)
Relative* (19.4) (33.6) (65.2)
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO