from s t o c k h e a d today At least SOME publicity LEPIDICO...

from s t o c k h e a d  today
At least SOME publicity
LEPIDICO (ASX:LPD)

LPD yesterday reminded punters that it has improved the economics of its Phase 1 lithium project, based on an integrated mine, concentrator and 5,600tpa hydroxide plant.
LPD wants to build the lithium mine and concentrator in Namibia, and the chemical conversion plant in Abu Dhabi.
The original release from November 22 was updated to include “additional JORC-related disclosures in Annexure 1” which … who knows, might be important new info.
Mostly though, it was an opportunity to run through the improvements LPD had made on its original 2020 DFS.
The base case NPV8% of US$530m and IRR of 42% at a long-term lithium hydroxide price of US$22,840/t is a big improvement on DFS data of US$221m and 31% respectively.
Some fairly conservative lithium price sensitivity analysis sees the NPV8% range from a downside scenario based on a US$16,800/t lithium hydroxide price of US$452m ($675m) to an upside figure of US$703m ($1,050m) based on a lithium hydroxide price of US$32,350/t.
The capital cost estimate including contingency for the chemical plant is US$203m and for the concentrator US$63m for a combined US$266m.
The next step for LPD is to lock in financing.
“Completion of the control estimates and schedules represents a major milestone in the advancement of the Phase 1 Project, allowing critical path lender technical due diligence to complete,” managing director Joe Walsh says.
“It is also gratifying to see that the significant capital cost inflation – a result of a global phenomenon – has been more than offset by higher lithium price forecasts, which are predicated on market fundamentals that continue to improve as energy transition momentum grows.
“Phase 1 is demonstrated to be robust technically, economically and from a sustainability perspective.
“The immediate focus is now on banking the Project to transition the business into development and on into production.”