Lepidico Ltd
Ongoing development for growth: Lepidico Ltd.’s (ASX: LPD) stock climbed up 9.756 per cent on May 01, 2018 post an announcement by the company wherein the group indicated about lodging a provisional patent application for hydrometallurgical process, i.e., S-Max. It provides high leach extractions on mica minerals at reduced consumable consumption rates and its purification stages can produce a range of marketable silica products at low cost versus existing industry processes. Moreover, purified amorphous silica may be either sold directly or used as a feedstock to produce a variety of other marketable silica products. This S-Max process is expected to enhance the economics of the Phase 1 Plant Project and expected to lead to reduced consumable consumption rates, higher recoveries of lithium and potassium, and the production of a broader suite of silica products than L-Max.
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Mineral Resource Comparison with Peers (Source: Company Reports)
On the other hand, the company recently released first quarter activities report for the period ending 31 March 2018 and revealed about Phase 1 L-Max Plant Feasibility Study which included optimisation of the L-Max process design and engineering through vendor testwork; selection of the preferred site within Sudbury for the location of the L-Max Plant; permitting and regulatory approvals; design optimisation for silica production; and continued option assessments for product offtake and finance. This program will provide greater insight on the actual capacity of each piece of equipment for its L-Max application and identify the incremental cost or cost saving of its capacity. The nominal output rate for the Phase 1 Plant remains 2,500 tonnes to 3,000 tonnes per year of lithium carbonate. However, installed capacity for major capital equipment could potentially increase to allow output of 5,000t to 6,000t per year of lithium carbonate. As at 31 March 2018, the group had cash of $6.2 Mn with debt free status. Moreover, the Company’s immediate strategic move to scale up the L-Max process to approximately 3.6 tonnes per hour in a Phase 1 Plant to demonstrate its commercial viability. This Project is currently subject to a Feasibility Study and planned to be in production by the end of 2019. Meanwhile, the stock price spiked up 228.80 per cent in last one year (as at April 30, 2018). We maintain our “Hold” recommendation on the stock at the current market price of $ 0.045, given the ongoing development and trading scenario.
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