Lepidico - Valuation update post-feasibility study

On 28 May, Lepidico (LPD) announced the results of its definitive feasibility study (DFS) on its integrated Karibib mining/chemical plant project to produce 4,900t of battery-grade lithium hydroxide (monohydrate) per annum plus a suite of high-value, Group 1 metal by-products over 14 years. The DFS calculated a project NPV8 of US$221m and an IRR of 31% after initial capex of US$139m (including a 13% contingency). C1 cash costs were estimated 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 global lithium chemical cost curve. This report updates our valuation of the company in the light of the DFS results.