Let's put everything into perspective for LPI. Stage 1 & 2 DFS defined numbers areastronomical. I will leave the references where people think, "Is this possible, how can it be this good?"
So let's get down to business. I combined everything into this one pic below as a visual - all with references in the text:
The above is before tax figures. Most ASX listed companies reports it as before tax.
Stage 1 Stage 1 on its own is a world-class project. Project NPV (leveraged basis) of AU$2.7B before tax at 8% discount rate, providing an IRR of 44.5% and a 2 year Payback. Take a moment to digest this - OPEX of US$3,718 per tonne of LCE produced! Project operating cost places LPI among the most efficient producers with an OPEX of US$3,718 per tonne not including credit from potassium chloride (KCl) by-product. Just take a guess, there is more - STAGE 2!
Stage 2 Stage 2 DFS was completed in 2019, without incorporating the process efficiencies of the recently completed DFS, stage 1. Expect the metrics to be improved as well. Stage 2 represents Litio 1-6 (see link below). Stage 2 operating cost places it into similiar metrics as Stage 1, among the most efficient producers, with OPEX of US$3,772 per tonne.
Please note, Stage 2 will come into production the 7th year of the project (please see link). One thing to be mindfull of is that stage 1 carries the construction cost of the project. This will greatly increase the IRR metrics of stage 2.
You might be asking yourself, why did LPI not release the recent DFS as Stage 1 and 2. Unfortunately under JORC requirements you cannot make assumptions, even if it is obvious and basic assumptions. Stage 2 will be subjected to DLE technology, where our primary partner Mitsui comes into play. This will turn the project on it's head and increase the world class metrics even more!!!
Stage 1 & 2 Combines LPI becomes a very enviable project when we combine these two stages, equating to a NPV of AU$5.9B project. Take a moment to consider LPI's MC of AU$233m and 51% ownership of the above project, this represents a 10% of Net Project NPV!!!!!!!LPI remains the most undervalued Lithium company in the word based on the above FACTS.
Take over is the most likely outcome. If LPI is taken over for $2 per share, then it's pure robbery. But let's consider it, that means it's a easy 3.5x bagger from here.
I beg you, complete your own due diligence to confirm this. You will be rewarded for the effort.
Please don't see this as investment advice.
LPI Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
