Lithium Power International

AU: LPI

Market CapAU$207m

Last Close AU$0.53

Lithium Power International’s main asset is its 100% interest (subject to completion) in the Maricunga lithium brine project in Chile. Subject to funding, the first stage is expected to produce 15.2ktpa of high-grade lithium carbonate, from 2026. It plans to demerge two early-stage exploration lithium projects in Western Australia by the end of CY22.

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Investment summary

Lithium Power International (LPI) has announced a successful equity placement, raising c A$25m in gross proceeds. This brings its proforma 30 June 2022 cash position to a comfortable level of A$31.5m. The funds will be used to advance LPI’s flagship Maricunga project. We have updated our model to reflect the news and LPI’s (now less dilutive) higher share price, increasing our valuation from A$1.0/share to A$1.24/share. Despite the backdrop of slowing global economic growth, lithium prices remain high reflecting tight supply/demand fundamentals and the sector’s attractive long-term growth potential.

Y/E Jun
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2020A 0.0 N/A (12.7) (4.94) N/A N/A
2021A 0.0 N/A (6.0) (2.16) N/A N/A
2022E 0.0 N/A (9.6) (2.52) N/A N/A
2023E 0.0 N/A (3.3) (0.66) N/A N/A
Industry outlook

The lithium market is transforming significantly due to explosive growth in e-mobility and energy storage. Given the shortage of development-stage lithium projects, the market is likely to remain in structural deficit, which should support higher lithium prices to incentivise new supply.

Last updated on 28/09/2022
Content on Lithium Power International
Lithium Power International – Successful equity raise; Maricunga progress
Metals & mining | research Update | 14 September 2022
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Lithium Power International – Gaining full control of Maricunga
Metals & mining | research Update | 30 June 2022
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (A$m) 7.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (13.1) 29.3 89.3
Relative* (4.2) 35.0 115.5
52-week high/low A$1.0/A$0.3
*% relative to local index
Key management
Cristobal Garcia-Huidobro CEO
Andrew Phillips CFO

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