LPD again, charts and fundamentals looks solid - Economic model of Phase 1 project below is yet to be updated to include an increase in ore reserves and mining life and the increase in lithium hydroxide prices (model is based on $16,000/t vs. BMI's long term price forecast of us$22,750/t). With just lithium price senstivity alone, upside potential based on lithium hydroxide price of US$32,350/t is a npv of US$703M (A$1,050M) (ASX announcement 22 November 2022). Current lithium hydroxide spot price is $43,430/t
The Phase 1 Project is based on an integrated mine, concentrator and chemical plant developmentthat has compelling investment fundamentals, with a Base Case unlevered NPV8% for the Project is US$452M (A$675M) and the Internal Rate of Return (IRR) is 41%.
The Chemical plant is designed to process 56,700tpa (dry basis) of lithium mica/phosphateconcentrate for a production capacity of 5,600tpa of lithium hydroxide. Lepidico’s Phase 1 Project represents a unique development opportunity to produce four valuablealkali metal streams; lithium, caesium, rubidium – all designated as Critical Minerals by the U.S.Government – and potassium. This is enabled by the Company’s proprietary process technology,L-Max®, coupled with lepidolite as the mineral feed source. LOH-Max® further differentiatesPhase 1 from other lithium projects by providing a single process step solution to produce lithiumhydroxide without the costly and potentially problematic production of sodium sulphate.
