Ann: Lepidico secures $7.5 million facility & 3B, page-161

Hi Kiwiberry,

Thanks for that. My mistake.

We all recognise that L-Max (carbonate) was technically viable as proved by the excellent lab results but LPD chose not to pursue the commercialisation of that product.

Various versions of the sodium ‘by-product’ were explored but LPD highlighted it as a major concern for the commercial viability of L-Max. More specifically, LPD couldn’t reliably depend on this by-product contributing to operating revenues.

In parallel, additional reasons given to not commercialise carbonate produced through the L-Max process became that ‘the market is moving toward hydroxide which presented a more profitable option than carbonate’.

Ok fine. But LPD is constituted to commercialise the IP of Strategic Metallurgy Pty Ltd. LPD is the commercialisation vehicle, not a metallurgy business. Sure LPD has a metallurgy partner (Strategic Metallurgy Pty Ltd) but the core purpose of LPD is commercialisation and to that extent LPD has adopted a mission statement of ‘fast-track the business to cashflow’.

There are plenty of posters here (and plenty across industry) who have highlighted that there is still a very decent demand outlook for high quality lithium carbonate (and therefore expectations of both spot and offtake prices). When asked about this mixed message at the 2019 AGM several LPD Board members fell over each other to insist that carbonate produced by L-Max was absolutely commercially viable.

Ok, let’s go back to step one… why would LPD abandon a now technically green-lighted plan to commercialise lithium carbonate? Back in 2018 the express reason given for the capital raise at that time was to ‘support a carbonate offtake’. Considering the company’s own mission statement - cashflow from carbonate, however meagre, is still cashflow.

There are so many mixed messages in there it becomes difficult to pinpoint exactly which version of reality is credible. Big picture is that LPD Board insists that carbonate is viable but are not pursuing the commercialisation because it is not viable.

The above is a very cut down observation of what is an extended L-Max lithium carbonate saga. No doubt LPD is now fully going for lithium hydroxide but make of the above carbonate story what you will.