Lepidico (ASX: LPD)

Currency in AUD

Last close As at 22/09/2023

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

View More

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

Metals & Mining | Update

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 8.3 30.0 (53.3)
Relative 7.5 27.5 (55.4)
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. Recent updates indicate that material project assumptions remain consistent with an NPV (8%) of US$530m or c A$749m (9.8 Australian cents per share) on a pre-funding basis with the Phase 1 chemical plant having now gained detailed planning approval in July. 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.

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

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

Update

Metals & Mining

Lepidico — Enter the US government

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

Thematics

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free