Lepidico

AU: LPD

AU$104m market cap

AU$0.03 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 from less contested minerals including lepidolite (a form of mica) and amblygonite. The process has been shown to work in stable and 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 3,000tpa operation. Engineered design for a larger 7tph (or 5,000tpa LCE) plant is underway as part of a feasibility study at the same time that a pilot plant is being constructed to reduce scale-up risk.

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 (5.9) (5.9) 0.0 N/A N/A
2020E 19.9 5.6 2.5 0.0 N/A 45.6
Last updated on 20/03/2019
Industry outlook

On 18 February, LPD announced that it had acquired the rights to LOH-Max technology in order to allow it to produce lithium hydroxide (preferred by Li-ion battery manufacturers) as well as lithium carbonate. Prior to that, our valuation of Lepidico was A$0.0398 based on the unit operating costs of the 3.6t/hour plant and an updated estimate of capex for a 7tph plant (excluding any potential value for a Phase 2 plant or other development options).

Last updated on 20/03/2019
Share price graph
Balance sheet
Forecast net cash (A$m) 24.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 10.7 106.7 (32.6)
Relative* 9.4 84.2 (34.9)
52-week high/low A$0.0/A$0.0
*% relative to local index
Key management
Joe Walsh CEO
Shontel Norgate CFO