Lepidico (ASX: LPD)

Currency in AUD

Last close As at 03/02/2023

AUD0.02

0.01 (100.00%)

Market capitalisation

AUD107m

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.

LPD received great results from its resource expansion programme aimed at extending the mine life to >20 years. By increasing the scope at Karibib, we estimate a final project value of US$379.7m, or A$588.3m (9.0c/share), 71.8% above LPD’s May 2020 DFS NPV(8%) of US$221m. In October we valued LPD at A$0.0605/share plus a further 0.66–1.61c/share for a risk-adjusted 20,000tpa LCE Phase 2 plant. Taking our total aggregate conceptual valuation of LPD to A$6.71–7.66/share. A final investment decision on the project is expected in Q1 CY23.

Latest Insights

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Lepidico — Quantifying exploration’s dividends

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Lepidico — Materially extended Phase 1 opportunity

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Lepidico — Coming in sight of the Rubicon

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Lepidico — Big swings and small roundabouts

Equity Analyst

Lord Ashbourne

Lord Ashbourne

Director, Energy & Resources

Key Management

  • Joe Walsh

    CEO

  • Shontel Norgate

    CFO

Balance Sheet

Forecast net debt (A$m)

112.8

Forecast gearing ratio (%)

89

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (11.8) (31.5) (62.3)
Relative (8.5) (33.6) (59.0)
52 week high/low A$0.0/A$0.0

Financials

Lepidico’s (LPD’s) patented technologies produce lithium hydroxide (plus by-products) in an eco-friendly way from less contested minerals such as lepidolite. In May 2020, LPD announced a definitive feasibility study on its Karibib project showing an NPV(8%) of US$221m and an IRR of 31% from the production of 4,900tpa battery grade lithium hydroxide (7,060tpa lithium carbonate equivalent, LCE, including by-products) over 14 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 100.6
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 (6.8) (17.5) 0.0 N/A N/A

Research

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

Metals & Mining

Lepidico — Fine tuning the mine and chemical plant

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