AU$60.2m market cap
AU$0.01 last close
Lepidico provides exposure to a portfolio of lithium assets via its proprietary IP and upstream interests in Australia, Canada and Europe. Uniquely, it has produced lithium carbonate from non-traditional hard rock lithium bearing minerals using its registered L-Max process technology.
Investment summary
Lepidico’s patented L-Max® technology recovers lithium economically from less contested mica minerals such as lepidolite. The process has been shown to work stably in continuous operation in large-scale lab tests and a 2017 PFS estimated C1 cash costs of lithium carbonate production near zero net of by-products for a 3ktpa operation. A feasibility study for a 7tph (or 5ktpa LCE) plant is underway and scheduled for completion in Q1 CY20. In the meantime, initial results from a pilot plant have confirmed L-Max process viability and product and by-product quality.
Y/E Jun |
Revenue (A$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 | 13.0 |
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 a resource update is expected imminently) and a strategic alliance with Gulf Fluor. Together, these have caused us to increase our valuation of the company to A$0.0604/share, based solely on a 7tph Phase 1 plant.
Last updated on 18/02/2020
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net cash (A$m) | 6.7 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Joe Walsh | CEO |
| Shontel Norgate | CFO |
