Lithium Power International

Lithium Power International (ASX: LPI)

Currency in AUD

Last close As at 25/09/2023

AUD0.25

▲ 0.02 (8.70%)

Market capitalisation

AUD157m

Overview
Price performance
Financials
Research
Thematics

Lithium Power International’s main asset is its 100% interest in the Maricunga lithium brine project in Chile; subject to funding, stage 1 is expected to produce 15.2ktpa of high-grade lithium carbonate from 2026. It sold its lithium assets in Western Australia to Albemarle in July 2023.

While the Australian assets were excluded from our valuation of LPI due to their early (pre-resource) stage of development, we believe the sale is positive for LPI as it allows the company to significantly extend its cash runaway without further diluting its shareholders.

Latest Insights

Metals & Mining |
Flash note

22.06.23

Lithium Power International — Sale of Australian assets agreed

Metals & Mining |
Update

14.06.23

Lithium Power International — Lower risk, higher reward

Metals & Mining |
Update

08.02.23

Lithium Power International — Lithium price upgrade calls for higher valuation

Metals & Mining |
Flash note

21.11.22

Lithium Power International — Carbonate purity above industry standards

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Sector

Metals & Mining

Equity Analyst

Andrey Litvin

Mining Analyst

Key Management

Andrew Phillips

CFO
Martin Holland

CEO

Balance Sheet

Forecast net cash (A$m)

13.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	2.0	(19.4)	(56.1)
Relative	2.8	(19.3)	(59.1)
52 week high/low	A$0.6/A$0.2

Financials

Lithium Power International (LPI) has announced that it has reached an agreement with Albemarle to sell its wholly owned Western Australian hard rock lithium tenements for A$30m in an all-cash transaction. In line with management expectations, the deal closed on 3 July. Of the overall consideration, approximately A$29m was received at completion, while the remainder will be paid if certain tenement applications are granted within 18 months of completion. Cash of A$15.1m at end March 2023 implies a comfortable pro forma cash position of c A$44m post transaction. LPI will use the proceeds to further advance its flagship Maricunga lithium project in Chile.