Lepidico (ASX: LPD)

Currency in AUD

Last close As at 07/06/2023

AUD0.01

0.00 (0.00%)

Market capitalisation

AUD99m

Via its Karibib project in Namibia and unique IP, Lepidico is a vertically integrated lithium development business that has produced both lithium carbonate and lithium hydroxide from non-traditional hard rock lithium-bearing minerals using its registered L-Max and LOH-Max processes.

In 2022, Lepidico completed extensive pilot plant trials that should mitigate scale-up risk and this year has substantially upgraded its mineral resources (and ore reserves) at Karibib. In the light of these developments, we have increased our valuation of the company by approximately a third to 8.61c/share plus a further 0.65–1.59c/share for a significantly risk-adjusted 20,000tpa lithium carbonate equivalent Phase 2 plant.

Latest Insights

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Metals & Mining

Lepidico — Everything moving all at once

Metals & Mining

Lepidico — Quantifying exploration’s dividends

Metals & Mining

Lepidico — Materially extended Phase 1 opportunity

Metals & Mining

Lepidico — Coming in sight of the Rubicon

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director, Energy & Resources

Key Management

  • Joe Walsh

    CEO

  • Shontel Norgate

    CFO

Balance Sheet

Forecast net debt (A$m)

121.8

Forecast gearing ratio (%)

99

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 10.0 (21.4) (63.2)
Relative 13.4 (19.4) (62.2)
52 week high/low A$0.0/A$0.0

Financials

Lepidico’s patented technologies produce lithium hydroxide (plus by-products) in an eco-friendly way, sourced from less contested minerals such as lepidolite. The company recently raised over A$19m in equity and released an updated economics announcement on its Phase 1 project in November 2022 with an NPV (8%) of US$530m or A$749m (9.8 Australian cents per share) on a pre-funding basis. By contrast, at our updated lithium prices, we value the project at US$641.4m (8.4 US cents per share, undiluted), or A$906.6m. The project has an operating life of 19 years.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 4.1 0.7 (0.3) 0.0 N/A 50.3
2022A 0.0 (4.8) (7.9) 0.0 N/A N/A
2023E 0.0 (3.1) (3.6) 0.0 N/A N/A
2024E 0.0 (3.1) (14.7) 0.0 N/A N/A

Research

Metals & Mining

Lepidico — Everything moving all at once

Metals & Mining

Lepidico — Quantifying exploration’s dividends

Metals & Mining

Lepidico — Materially extended Phase 1 opportunity

Metals & Mining

Lepidico — Coming in sight of the Rubicon

Metals & Mining

Lepidico — Big swings and small roundabouts

Metals & Mining

Lepidico — Binding offtake signed with Traxys

Metals & Mining

Lepidico — Phase 2 coming into view

Further insights

Metals & Mining

Lepidico: A new valuation is revealed

Metals & Mining

Lepidico: Review of the year 2022

Metals & Mining

Lepidico: Aiming at the sweet spot of supply

Metals & Mining

Demand for Teslas point to lithium deficit

Analyst of the week

Thematics

Metals & Mining

Critical minerals: The investment vacuum

samuel-scrimshaw-kp_87tExCwI-unsplash

Metals & Mining

Lithium’s adolescence

Metals & Mining

Lepidico: Offer closes, oversubscribed

Consumer

IPO apocalypse

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