Lepidico - Developing to the (L-)Max

On 28 May, Lepidico (LPD) announced the results of its Association of the Advancement of Cost Engineering (AACE) class three (definitive) feasibility study (DFS) on its integrated Karibib mining/chemical plant project to produce 4,900tpa of battery grade lithium hydroxide (monohydrate) plus high value, Group 1 metal by-products over 14 years. At a lithium hydroxide price of US$13,669/t (cf US$10,350–11,200/t currently), the DFS calculated a project NPV8 of US$221m, or A$340m (A$0.066/share) and an IRR of 31% after initial capex of US$139m (including a 13.6% contingency). C1 cash costs were estimated to a ±15% level of accuracy at US$1,656/t lithium carbonate equivalent (LCE) and all-in sustaining costs at US$3,221/t LCE – putting it near the bottom of the known LiOH cost curve. A comprehensive review of the DFS is now planned, which will be reported on in due course.