AU$74.8m market cap
AU$0.02 last close
Lepidico provides exposure to a portfolio of lithium assets via its proprietary IP and upstream interests in Australia, Canada and Europe. Uniquely, it has produced lithium carbonate from non-traditional hard rock lithium bearing minerals using its registered L-Max process technology.
Investment summary
Lepidico’s L-Max® technology recovers lithium economically from less contested lithium mica minerals such as lepidolite. The process has been shown to work stably in continuous operation in large-scale lab tests and a 2017 PFS estimated C1 cash costs of lithium carbonate production near zero net of by-products for a 3ktpa operation. Engineered design for a larger 7tph (or 5ktpa LCE) plant is underway as part of a feasibility study (scheduled for completion in Q1 CY20). In the meantime, initial results from a pilot plant (designed to reduce scale-up risk) have confirmed L-Max process viability.
Y/E Jun |
Revenue (A$m) |
EBITDA (A$m) |
PBT (A$m) |
EPS (fd) (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 0.1 | (0.8) | (5.4) | 0.0 | N/A | N/A |
| 2018A | 0.2 | (5.1) | (7.2) | 0.0 | N/A | N/A |
| 2019E | 0.0 | (6.0) | (6.0) | 0.0 | N/A | N/A |
| 2020E | 0.0 | (3.1) | (7.6) | 0.0 | N/A | N/A |
| Last updated on 18/09/2019 | ||||||
Industry outlook
In February, LPD acquired the rights to LOH-Max technology to produce lithium hydroxide at both reduced capex and opex. Since then, it has announced the (value accretive) acquisition of Desert Lion, an alliance with Gulf Fluor and a 1 for 9 rights offer to raise A$11.0m. Together, these have caused us to increase our valuation of the company to A$0.0692/share, based on a 7tph Phase 1 plant alone.
Last updated on 18/09/2019
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net cash (A$m) | 6.7 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Joe Walsh | CEO |
| Shontel Norgate | CFO |
