Lepidico (ASX: LPD)

Last close As at 29/02/2024

AUD0.01

0.00 (0.00%)

Market capitalisation

AUD54m

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 the light of the updated DFS, we conservatively value Lepidico at 5.39c/share, plus a further 0.68–1.66c/share for a significantly risk-adjusted 20,000tpa lithium carbonate equivalent Phase 2 plant. However, if Benchmark Mineral Intelligence’s lithium hydroxide price deck is applied to our model, this valuation would rise to 10.17c/share, currently.

Latest Insights

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Metals & Mining | Update

Lepidico — Development plan evolves

Metals & Mining | Update

Lepidico — Everything moving all at once

Metals & Mining | Update

Lepidico — Quantifying exploration’s dividends

Metals & Mining | Flash note

Lepidico — Materially extended Phase 1 opportunity

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director, Energy & Resources

Key Management

  • Joe Walsh

    CEO

  • Shontel Norgate

    CFO

Balance Sheet

Forecast net debt (A$m)

34.4

Forecast gearing ratio (%)

42

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.0 (25.0) (57.1)
Relative (1.7) (31.9) (59.9)
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. On 30 October 2023, Lepidico released updated economics of its 2020 DFS on its integrated lithium hydroxide mine and chemical plan, which indicated an NPV (8%) of US$457m or c A$697m (9.4 Australian cents per share) on a pre-funding basis. Based on our previous research, this would imply a pre-funding valuation for Lepidico of 2.9c/share, to which its shares are currently trading at a significant 76% discount.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 0.0 (4.8) (7.9) 0.0 N/A N/A
2023A 6.4 (1.2) (3.0) 0.0 N/A N/A
2024E 0.0 (3.1) (3.7) 0.0 N/A N/A
2025E 0.0 (3.1) (6.9) 0.0 N/A N/A

Research

Flash note

Metals & Mining

Lepidico — Materially extended Phase 1 opportunity

Update

Metals & Mining

Lepidico — Coming in sight of the Rubicon

Update

Metals & Mining

Lepidico — Big swings and small roundabouts

Update

Metals & Mining

Lepidico — Binding offtake signed with Traxys

edison tv

Metals & Mining

Watch Lepidico ETV: The alternative to a complex portfolio

Update

Metals & Mining

Lepidico — Phase 2 coming into view

Update

Metals & Mining

Lepidico — Fine tuning the mine and chemical plant

Update

Metals & Mining

Lepidico — Convertible bond acquired with DLI fully retired

Further insights

insight

Metals & Mining

Lepidico: A new valuation is revealed

insight

Metals & Mining

Lepidico: Review of the year 2022

insight

Metals & Mining

Lepidico: Developing a leading and unique position in lithium

insight

Metals & Mining

Lepidico: Aiming at the sweet spot of supply

insight

Metals & Mining

Demand for Teslas point to lithium deficit

Analyst of the week

Andy Murphy

Andy Murphy

Director, Financials & Industrials

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