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Currency in AUD
Last close As at 07/06/2023
AUD0.35
▲ 0.02 (6.06%)
Market capitalisation
AUD217m
Lithium Power International’s (LPI’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.
We have raised our near-term lithium prices expectations to reflect the current supply/demand cycle and upgraded our long-run (post 2031) price forecasts (from US$17,000/t to US$22,500/t LCE) to reflect lithium’s high demand growth and highly concentrated supply fundamentals. As a result, our valuation of LPI has increased from A$1.24/share to A$1.42/share assuming the full project equity dilution.
Mining Analyst
Andrew Phillips
CFO
Cristobal Garcia-Huidobro
CEO
Forecast net cash (A$m)
13.9
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 11.3 | (2.8) | (23.3) |
| Relative | 12.9 | 0.5 | (23.2) |
| 52 week high/low | A$0.7/A$0.3 |
LPI has recently completed an acquisition of the water rights for the Maricunga project. This replaces a long-term lease that the company held for part of its water requirements and will secure water supply for both Stage 1 (15.2ktpa lithium carbonate) and any future expansions. LPI estimates the initial stage of the project will only require eight litres/second of water compared to the 62 litres/second rights acquired by the company. At end December 2022, the company had A$20m in cash and no debt.
| Y/E Jun | Revenue (A$m) | EBITDA (A$m) | PBT (A$m) | EPS (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 0.0 | N/A | (6.0) | (2.16) | N/A | N/A |
| 2022A | 0.0 | N/A | (12.6) | (3.77) | N/A | N/A |
| 2023E | 0.0 | N/A | (2.7) | (0.55) | N/A | N/A |
| 2024E | N/A | N/A | N/A | N/A | N/A | N/A |
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