Lepidico - Valuation update post-feasibility study
On 28 May, Lepidico (LPD) announced the results of its definitive feasibility study (DFS) on its integrated Karibib mining/chemical plant project to produce 4,900t of battery-grade lithium hydroxide (monohydrate) per annum plus a suite of high-value, Group 1 metal by-products over 14 years. The DFS calculated a project NPV8 of US$221m and an IRR of 31% after initial capex of US$139m (including a 13% contingency). C1 cash costs were estimated at US$1,656/t lithium carbonate equivalent (LCE) and all-in sustaining costs at US$3,221/t LCE – putting it near the bottom of the known global lithium chemical cost curve. This report updates our valuation of the company in the light of the DFS results.Lepidico is engaged in mineral exploration and the development and licensing of L-Max® technology. Co.'s lithium portfolio of exploration and commercial ventures include the Lemare project in Canada; the Euriowie project near Broken Hill in New South Wales, Australia; Third Element Metals Pty Ltd, a joint venture in Brazil; a joint venture in Argentina; and L-Max® licence arrangements with Lithium Australia Ltd. and European Metals Holdings Limited. Co. also retains its interest in the East Pilbara Polymetallic project, which is located in the East Pilbara region of Western Australia. The L-Max® process allows the extraction and recovery of lithium from lithium bearing micas.
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