Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to announce the release of its audited consolidated financial statements for the year ended 30 June 2020.
Highlights for the year
• The year was incident free, continuing Lepidico’s zero-harm health, safety and environment track-record since records began in September 2016.
• Definitive Feasibility Study (DFS) reveals attractive Phase 1 Project (P1P) economics within 12 months of acquiring the Karibib assets, which include a 31% Internal Rate of Return and NPV8% of US$221 million (A$340 million) ungeared, based on a 14 year production life.
• Average P1P output of 4,900 tonnes per annum (tpa) lithium hydroxide monohydrate (87.5% of design capacity) at a competitive C1 cost of US$1,656/t lithium carbonate equivalent (LCE) and an All in Sustaining Cost (AISC) of US$3,221/t after by-product credits.
• P1P demonstrates low carbon intensity similar to that associated with lithium brine operations along with the modest water intensity of spodumene sourced chemicals and relatively small land use footprint, as well as other favourable sustainability credentials.
• Strategic caesium and rubidium high value by-products plus sulphate of potash (SOP) and amorphous silica bulk by-products collectively represent 38% of total revenue, and give aggregate production on a total lithium equivalent basis of over 7,000tpa LCE.
• Pre-production capital for P1P of US$139 million with payback after +3 years of operation; includes contingency of +13% and production capability for all products from commissioning.
• Competitive capital intensity of US$17,400/t LCE on by-product basis, equivalent to US$27,900/t LCE before credits from other products.
• Ore Reserves total 6.7 million tonnes grading 0.46% Li2O, 0.23% rubidium and 320ppm caesium representing a 60% conversion from Mineral Resources at 11.24 million tonnes. Karibib is understood to be the only JORC Code (2012) (or NI43-101) compliant Ore Reserve estimate for both rubidium and caesium globally and therefore represents a unique opportunity for the production of these strategic metals, for which the United States is totally reliant on imports.
• Environmental and Social Impact Assessment (ESIA) completed for the Namibian P1P operations, which identifies it as a Category B Project with significant socio-economic benefits, along with advantages from the environmental reclamation of the existing mine sites.
• Patent protection for L-Max® granted in United States, Japan, Australia and Europe.
• Cash and cash equivalents as at 30 June 2020 of $4.8 million; includes proceeds from oversubscribed Entitlement Offer which closed in May raising gross proceeds of $3.9 million Lepidico’s Managing Director, Joe Walsh said, “Significant advancements were made in fiscal 2020, in particular completion of the Definitive Feasibility Study, despite the challenges presented by the COVID 19 pandemic. The Company is now well positioned to deliver on its strategy to become a globally significant alkali chemical producer, as anticipated demand for lithium chemicals increases substantially to satisfy demand growth for energy storage applications including electric vehicles, over forthcoming years”.
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