Lepidico - Big swings and small roundabouts

While lithium had a relatively poor coronavirus in terms of its price performance relative to other metals, the speed of its catch-up post-crisis has been striking. The price has doubled since August and there is near-universal consensus that the market will remain in deficit (barring the extraordinary) for the remainder of the decade. This note updates our valuation and forecasts for Lepidico to reflect a 19.3% increase in our long-term lithium hydroxide price assumption to a still relatively conservative US$18,000/t, which more than offsets the effects of some of the delays (eg slow assay turnaround times) that the company is experiencing.