Lithium Power International (ASX: LPI)

Currency in AUD

Last close As at 04/02/2023

AUD0.44

−0.01 (−1.14%)

Market capitalisation

AUD277m

Lithium Power International’s main asset is its 100% interest 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 its early-stage exploration lithium projects in Western Australia in Q1 CY23.

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 bring new supply into production.

Equity Analyst

Andrey Litvin

Supervisory analyst

Key Management

  • Andrew Phillips

    CFO

  • Cristobal Garcia-Huidobro

    CEO

Balance Sheet

Forecast net cash (A$m)

7.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (1.1) (13.9) (39.2)
Relative (7.6) (20.0) (41.7)
52 week high/low A$1.0/A$0.4

Financials

In December, LPI announced completion of the ownership consolidation transaction, having acquired the remaining 17.4% interest in Maricunga from Bearing Lithium. Earlier the company completed the merger with Salar Blanco and now controls 100% of the project. This transaction allows the company to streamline the ownership structure, further de-risking the project ahead of the final investment decision. In other news, LPI commenced an inaugural drilling programme at its Greenbushes lithium project in Western Australia. The company remains committed to demerging its Australian lithium assets in H123. This should crystalise additional value to LPI shareholders.

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

Thematics

samuel-scrimshaw-kp_87tExCwI-unsplash

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