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Lepidico (ASX:LPD) - Managing Director, Joe Walsh
Managing Director, Joe Walsh
Source: Lepidico
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  • Lepidico (LPD) shares have risen after the company published its June quarterly, which revealed it had received an unsolicited bid for lithium hydroxide supply from a “tier one” consumer
  • LPD says a strengthening lithium market provides a positive environment as its Phase One plant transitions through the development stage
  • Multiple offtake discussions for lithium hydroxide within the electric vehicle supply chain are said to be under way
  • Cash and equivalents clocked in at $14.7 million at the end of June
  • Lepidico shares are up 3.33 per cent to trade at 1.6 cents at 12:08 pm AEST.

Lepidico (LPD) shares have risen after the company published its June quarterly, which revealed it had received an unsolicited bid for lithium hydroxide supply from a “tier one” consumer.

The update recounted the company’s developments across its Phase One chemical plant in Abu Dhabi and the Karibib Lepidolite Project in Namibia, and carried an optimistic outlook for the lithium market.

The company said May marked a milestone period as its Phase One Project transitioned to the development phase, leading LPD to believe supply agreements and project funding could be on the horizon.

Speculation on this matter was further fuelled by a reference to “unsolicited unbound interest for lithium hydroxide supply from a tier-one consumer”.

Discussions are said to be advancing well with other unnamed manufacturers in the electric vehicle supply chain.

Lepidico affirmed lithium prices would continue to rise amid strengthening demand and forecasts of a supply deficit that could emerge later this year. The company added that this would be a positive industry environment while the Phase One plant is underway.

Lepidico indicated it would hold off on committing to upgrading its pilot plant in Abu Dhabi until it had received a satisfactory offtake agreement.

In terms of cash, Lepidico reported $14.7 million in the bank, equating to roughly 15 quarters of funding based on current spending levels.

Lepidico shares were up 3.33 per cent to trade at 1.6 cents at 12:08 pm AEST.

LPD by the numbers
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