Lepidico is an ASX listed company owns the L-Max® technology. The Company has undergone several name and personnel changes in recent years to eventually become the vehicle to develop this exciting technology and to become a world class lithium producer.The technology enables its management team to fast track lithium production from mineral deposits that have traditionally been uneconomic lithium sources.
This research report is designed to provide investors will an overview of the L-Max® technology process, and with the recent release of its pre-feasibility results, Breakaway Research has estimated a project value from the pre-feasibility data.
The first step is to understand the demand/supply fundamentals of the lithium market, and in particular, the characteristics of supply and how it may change with L-Max® technology.
Lepidico (“LPD”) owns the L-Max® technology – a technology which enables the extraction of lithium from lithium micas like lepidolite. In the past, these micas have been difficult to process and hard rock lithium miners have tended to mine only spodumene-rich deposits. The L-Max® technology leaches the lithium in a relatively straightforward process using commonly available reagents. The process produces a number of valuable by-products and this value offsets the cost of producing lithium on a C1 cash cost basis (estimated by the Company’s pre-feasibility study). The Company has released project parameters for its DFS and seeks to fast track development for first production in 2019.
Our recommendation is a SPECULATIVE BUY for LPD. The Company has access to valuable technology which could create a leading position in the lithium market in years to come. Successful implementation of its Phase 1 project could provide a 3.4 times share price uplift as it approaches first production and its current value is underpinned by the LIT takeover offer.
Official website: http://www.lepidico.com
ASX on Hotcooper: http://hotcopper.com.au/asx/LPD
Markets: Base Metals