Interview with Joe Walsh, MD of Lepidico (ASX:LPD)
Our previous interview: • Lepidico (LPD) - Site ...
Recording date: 9th February 2023
Lepidico is a lithium exploration and development company, with offices in both Perth and Toronto. The company is listed on the ASX as well as various German stock exchanges. Lepidico aims to become a vertically integrated business from mining at its 80% owned Karibib project in Namibia to the production of battery-grade lithium chemicals at its Phase 1 chemical plant in Abu Dhabi. The company implements its L-Max® process technology to extract lithium and various other valuable by-products from lithium-mica and phosphate minerals
The company at the end of January 2023 published its quarterly activities report for Q4 2022. The report includes highlights as the economics of the Phase 1 chemical plant being updated and improved by the company. The updated economics show an NPV8% of 530 million and an IRR of 42%, in contrast with the economics of the project in 2020 which had an NPV8% of 221 million and an IRR of 31%. The front-end engineering design (FEED) works of the project have been completed with the EPCM works commencing in December 2022. The first lithium chemical production is scheduled to occur in H2 2025.
The review of the control estimates and schedules for the phase 1 development of the Karibib project has been completed with the technical due diligence set to be concluded in February 2023 by an independent engineer. The completion of the technical due diligence closes out the body of work required by the Development Finance Corp (DFC) bringing the company closer to receiving the necessary funds to advance the project. The legal due diligence for the project’s funding has also been initiated, with the preferred legal counsel of the DFC appointed by Lepidico.
0:00 - Company overview
0:53 - Company highlights in 2022
1:38 - Validating the economic studies by the company
2:59 - Conversations with US International Development Finance Corporation
5:16 - Source of funding for the Namibian project
6:02 - Working with Traxxas
6:34 - Conversations with potential strategic partners
9:47 - Starting the shift to Phase 2
10:58 - Overview of the Lithium production plant in UAE
12:52 - Advancing the company projects
14:04 - Strategy in timing the market
15:27 - Getting the company properly valued
16:25 - Projected milestones for 2023 and the next years
18:08 - Importance of ESG Credentials and implementation
20:34 - Outro
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