Last close As at 05/08/2026
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Market capitalisation
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Research: Metals & Mining
Lithium Power International (LPI) has entered into a binding agreement to sell its 100%-owned Australian lithium tenements to Albemarle. This is an all-cash transaction that will see LPI receive A$29m on completion, which is expected in early July 2023. The company will use the proceeds to further advance its flagship Maricunga lithium project in Chile. The deal is positive in our view in that it allows LPI to significantly extend its cash runway without further diluting its shareholders.
Lithium Power International |
Sale of Australian assets agreed |
Asset divestment |
Metals and mining |
22 June 2023 |
Share price performance
Business description
Analyst
Lithium Power International is a research client of Edison Investment Research Limited |
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Lithium Power International (LPI) has entered into a binding agreement to sell its 100%-owned Australian lithium tenements to Albemarle. This is an all-cash transaction that will see LPI receive A$29m on completion, which is expected in early July 2023. The company will use the proceeds to further advance its flagship Maricunga lithium project in Chile. The deal is positive in our view in that it allows LPI to significantly extend its cash runway without further diluting its shareholders.
Year end |
Revenue (A$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
06/20 |
0.0 |
(12.7) |
(4.9) |
0.0 |
N/A |
N/A |
06/21 |
0.0 |
(6.0) |
(2.2) |
0.0 |
N/A |
N/A |
06/22 |
0.0 |
(12.6) |
(3.8) |
0.0 |
N/A |
N/A |
06/23e |
0.0 |
(2.7) |
(0.6) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are from continuing operations and normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
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. The deal is expected to close on or around 3 July. Of the overall consideration, A$29m will be received at completion, while the remainder (A$1m) will be paid if certain tenement applications are granted within 18 months of completion. LPI had previously considered a spin-off and subsequent listing of the assets. However, due to subdued stock market conditions and the attractive nature of the Albemarle proposal, it has decided to proceed with the sale.
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 runway without further diluting its shareholders. Cash of A$15.1m at end March 2023 implies a comfortable pro forma cash position of c A$44m post the transaction. LPI will use the proceeds to further advance its flagship Maricunga lithium project in Chile. For more details on the valuation of Maricunga, please see our recent update note.
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Research: Industrials
AAC Clyde Space has announced a rights issue to raise SEK73.7m on a three-for-five basis at SEK0.60/share. The fully subscribed issue will raise c SEK60.6m net (after costs of SEK13.1m) for the company and is 65% covered by subscription commitments from several existing shareholders, potential investors and management. In combination with a secured SEK20m loan facility, the proceeds will be used to support working capital as AAC grows its space data as a service (SDaaS) business and funding for the acceleration of the xSPANCION satellite constellation project.