lpd share price, page-2396

Me too! I've been in the lithium sector of the market some time, their were several stocks to choose from, all were specys, some more than others. I had the option to go with those very close to getting contracts and production two such were Galaxy and Neometals. However, I was interested more in those companies developing and pursuing new production technology.

This is what lead me to PLP and (sadly) LIT. Well we all know what has happened since. PLP/LPD had the smallest market capital (MC) the other more than twice its MC. Look at that today LPD approx $100m the other $27m. Using a price comparison with GXY over the last 3 years GXY is down 35% and LPD is up 78%. Now that is timed timed 6 months before the peak of the lithium boom which ended Nov 201/Jan 2018. AJM too is off 25%, so on that measure we haven't performed too badly; I'm not saying all is rosy, but it's all about market sentiment, lithium presently is not a market darling. Neither are the banks, CBA is up only 5.25%, so even staid sectors like that have little to brag about.

You might be interested to read some of the following articles and posts from a number of People who put out some very good commentaries:
There are quite number but are well worth examining:
Sharpy'
sqe
rayien
dufhaste
welsho54
in4apenny
maxi1981
able77
There are others but these spring to mind at the moment.
One from Kiwiberry: caught my interest today was this:(Kiwiberri, hope you don't mind but I did change the format a little)
Also have a look at the following thread "Lithium Related News" on page 23 Where there is an article from Livent (FMC former lithium chemical Co) it is well worth the read, its a long document but explains well where the Lithium industry is at present.

Also, from Dufhaste is a valuation model that is well worth examining, it is posted at the end of the page.

19/08/19

Kiwiberry

When you look at the whole equation, we expect to be able to producelithium hydroxide more competitively than hydroxide from spodumene,” Lepidico managing director JoeWalsh told Mining Journal.

Most of the world's current lithium supplyis dominated by spodumeneconcentrate, which is typically mined and concentrated in Western Australia and then shippedoff to China for refining. However, this process has itsdownsides, including geopolitical risk arising from the US-China trade war, as well as the costof converting the concentrate into battery-grade lithium hydroxide.

Lepidico(‘s) says the smaller scale of its planned operations, combinedwith lower costs of conversion from lithium mica and lithium phosphate, willhelp to keep costs significantly down.

“We're using a purely hydro-metallurgical process, unlike spodumene which is a pyro-metallurgical and then hydro-metallurgical process,” said Walsh. “Whereas spodumene involves heating to very high temperatures [up to 850 degrees], we only heat to 100 degrees Celsius, which is a lot less energy intensive.

“Those two elements really help the economics associated with lithiummica, lithium phosphate conversion, despite lithium mica minerals being lowergrade on concentrations.”

Desert Lion had originally planned to produce 20,000 tonnesof lithium hydroxide per year, and had already started producing lithium concentrate from stockpiledmaterial. But as the price of lithium has reduced, the company eventually found itself running out of money, even despite the non-binding offtake agreement it signed with German chemical company BASF in April.

“Desert Lion had a fairly aggressivedevelopment strategy last year, and with the fall-back in spot China lithiumcarbonate prices, they effectively ran out of capital,” said Walsh.”We likedwhat they were doing, and saw an opportunity. The acquisition by Lepidicobrings the Desert Lion assets into a well capitalised vehicle, which also providesan alternate methodology for becoming a lithium chemical producer usingproprietary technology.”

Following the acquisition, Lepidico staff went out toNamibia to integratethe Desert Lion staff, and also set up four drill rigs. Drilling is set to start in September, and a new resource estimate isscheduled for Q4. The companyis carrying out feasibility studies for two open-pit mines, one at Pelekon oneand one at Rubicon.

Unlike some of the proposed lithiumprojects in Europe, Lepidico are notplanning to build a refinery anywhere near to itsactual mining operation. Instead, the company is looking at locations either inCanada, at Sudbury, or Abu Dhabi in the UAE, and seeking potential strategicpartners for the plant.

“The key for us is strategically locating that plant,” said Walsh. “We need to maximiserevenue by having local markets for both by-products ― (1)SOP [sulphate of potash] fertiliser and, (2)amorphoussilica-lithium ― and (3)minimise our costsby having local sources of sulphuric acid and lime and limestone.”

Lepidico executives recently visited AbuDhabi, where they met with Gulf Fluor, and the largest manufacturer ofsulphuric acid in the region.

“Our process consumes sulphuric acid; it's our largest singleconsumable, so being in proximity to affordable abundant sources of acid is important to us. We use one tonne ofsulphuric acid for every tonne of concentrate processed,” said Walsh.

Lepidico's target to keep theentire cost of mining, concentrating and then refining lithium mica to under$100 million contrasts with estimates previouslyprovided to Mining Journal, which put the cost of an integrated mining andrefining operation (in Europe at least) at $400-500 million, although someEuropean projects do claim lower costs.

Lepidico's market capitalisation is $A114million (US$79.6 million). “Most of the other lithium projects are going forscale, because they need to earn back their high cost of construction to make areturn,” said Walsh.”Ourscale to get a return release a more exact figure later this year.

Below is Infomation and table provided and design by Dufhaste all rights and privileges are his.

LPD Share Price Valuation Model by dufhaste

I took some time to update my Shareprice-Potential-Modelbased on latest developments. It's the basis for my SP expectations. It helps(at least it helps me) to have a more objective look on share pricedevelopment. The model considers the Net Present Value as Benchmark for theMarket Cap / Share Price. I just ran the numbers for the pilot Plant. If youadd a Full scale Plant the numbers obviously get substantially higher.

I hope you don't mind that I have included this document, I believe it is such an informative post that it should be available for those who don't have the your well honed skills to compile.

If you do object I will take it down immediately. Thank you Dufhaste.