Lepidico

Overview
Price performance
Financials
Research
Sector insights
Thematics

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.

Prior to its recent rights/entitlements offer, we conservatively valued Lepidico at 5.39c/share (based on a discounted dividend model), plus a further 0.68–1.66c/share for a significantly risk-adjusted, full-scale, 20,000tpa lithium carbonate equivalent Phase 2 plant. However, if Benchmark Mineral Intelligence’s lithium hydroxide price forecasts were used instead of our own, this valuation would almost double to 10.17c/share. In the meantime, Lepidico is considering its strategic options, including looking at alternative development scenarios (eg a smaller starter mine).

Latest Insights

Metals & Mining |
Update

31.10.23

Lepidico — Development plan evolves

Metals & Mining |
Update

14.02.23

Lepidico — Everything moving all at once

Metals & Mining |
Update

06.10.22

Lepidico — Quantifying exploration’s dividends

Metals & Mining |
Flash note

26.09.22

Lepidico — Materially extended Phase 1 opportunity

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Sector

Metals & Mining

Equity Analyst

Lord Ashbourne

Director of Content, Mining

Key Management

Joe Walsh

CEO
Shontel Norgate

CFO

Balance Sheet

Forecast net debt (A$m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(16.7)	25.0	(70.8)
Relative	(16.4)	17.1	(75.0)
52 week high/low	A$0.0/A$0.0

Financials

Lepidico’s patented technologies produce lithium hydroxide (plus by-products) in an environmentally friendly way, sourced from less contested minerals such as lepidolite. On 30 October 2023, it released updated economics in relation to its 2020 DFS for an integrated mine and lithium hydroxide chemical plant, which indicated an NPV (8%) of US$457m or c A$697m (then A$0.094 per share) and implied a pre-funding valuation for the company of 2.9c/share.