Lepidico (LPD) - Financing is the Final Hurdle for Robust Lithium Project - YouTubeI was recently reminded of this Crux Interview from 12th Feb 2023, this paid interview was conducted around the time when Joe was confident funding for the integrated phase 1 project could be achieved in the first half of 2023 and definitely by the end of 2023.
At the time of this interview LOH pricing was about 60,000 USD/t, coming off the all time highs of around 80,000 USD/t, that price has come down to being close to 10,000 USD/t and traded in that region for 10 months now. No wonder management have not been able to entice a strategic partner to sign on the dotted line so far this year.
This interview is worth listening to because form the 4 minute mark to 10 minutes Joe is talking about the debt funding from USDFC and the strategic partner selection, this is the process we are concluding right now, management have put a deadline of October for binding submissions from strategic partner/s for Karibib this will allow legal DD for USDFC to recommence.
At the 12 minute mark Joe says that most market analysts in the lithium market are forecasting prices this decade to be in the low 20's to high 20's and long term around the 30-32,000 USD/t.
In February 2023 when the price was coming off 80,000 USD/t, it was virtually inconceivable the price would be close to 10,000 USD/t for the 10 months up to October 2024 hence Joe's exuberance at the time of this interview can be put into context.
Around the 17 minute mark Joe explains how the strategic investor is most likely chosen to participate in funding for Karibib and the chemical plant in Abu Dhabi, it seems we have taken a different tac now to sequential development rather than "tracking in parallel" as Joe describes here.
The segment of this interview that I find interesting is at the 4 minute mark where Joe says "indications are that DFC will be there for up to around 50m USD"
Our market cap is only 26m AUD at present, being 17m USD, I wonder what it will be when we secure this low interest debt financing from USDFC?? I also wonder what we will need to give up to the equity partner coming onboard??? I expect some more direction from management in the quarterly due out within the next two weeks.
GLTAH
(20min delay)