Cypress Development (CYP.V) will change its name to Century Lithium while the ticker symbol will be updated as well. The name change will make it more clear Cypress is in the lithium business. The ticker symbol will change to the very applicable ‘LCE’ from January 30 on.

The company also provided a progress update on the feasibility study which is currently being completed on the Clayton Valley lithium project in Nevada. Everything remains on track and the pilot plant continues to function as designed and a concentration lithium solution is being produced. The solution is subsequently shipped to Saltworks Technologies and Cypress anticipates shipping additional 1000 liter lots to Saltworks later this month.

As there are no negative surprises, Cypress still expects the updated feasibility study to be completed by the end of the second quarter. Inflation will likely result in a 50% capex and opex increase, but despite this, the NPV may actually increase as the base case lithium price used by the company will likely be substantially higher than the $9,500/t used in the pre-feasibility study. With spot prices constantly trading between $60,000/t and $80,000/t, it’s not hard to imagine a base case scenario using a price of $20,000 per tonne (which would be even higher than the $14,250/t in the ‘+50%’ scenario outlined in the pre-feasibility study). We will know in Q2 2023 what the consultants ended up using, but we do expect a higher base case price to compensate for the impact of inflation on the capex and opex.

Disclosure: The author has a long position in Cypress Development. Cypress is a sponsor of the website. Please read our disclaimer.

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