I'm new to LPI so I thought I would have a look at the DFS in a...

I'm new to LPI so I thought I would have a look at the DFS in a bit more detail - here is a summary of the info I found useful and thought I would share.

Before doing so just another thought - the new government (elected last year and with different ideology to the previous one... much more to the left) is only stepping to power in March / April so investors and potential offtakers might be waiting for this to happen before getting the wallet out...

Going back to the DFS - the plant capacity at 15.2 kT per annum for 20 years which seems to come from the confirmed reserve which is 311 kT for stage 1.



The price of LCE (battery grade) used in the calculations is US$25,217/T and is based on projections from Roskill.

Here is a table with all the base case assumptions (was hard to find - in the sensitivity analysis section)



The CAPEX is high and this is due to the salt removal plant which was required for the process and does present some benefits too according to Worley. It's good that this was picked up now and not at detailed design stage when it might have impacted the financial models.



The DFS also includes the below details on NPV and IRR before and after taxes - which will help with other companies.


I also found commentary on potential expansion of the resource - worth asking management tomorrow what the plans are to confirm the resource for stage 2? Especially considering the comment as per the below printscreen that there are currently no plans for the timing of drilling to define the resource in the exploration target area?



The DFS also includes at the end a schedule for the project implementation - looking at Q2 2026 to start production based on a FID by the end of the year and Notice to Proceed (NTP) for construction in Jan 2023.



Final point that might also be worth raising tomorrow is the risk highlighted that there are other projects in the same area and the salar might not support two large LiCO3 plants. This is also an opportunity as pointed out by Worley to expand our position with a first mover advantage.


I hope this was helpful. The numbers look great and being more advanced than others with key permits granted and a DFS should be reflected in the market cap when compared to some of LPI's peers.

I might not be able to attend the webinar tomorrow because of work - but I'm sure many of you will be sharing the key messages on HC so thanks in advance.