Liontown promises lithium production at Kathleen Valley by mid 2024, but it might need more capital

Nick Sundich Nick Sundich, January 20, 2023

Liontown Resources (ASX:LTR) expects to be commencing production at its Kathleen Valley Lithium project by mid-2024. This morning, the company gave an update to shareholders, which reiterated this goal, but it admitted there was some more work to do.

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

Liontown has optimised the Kathleen Valley Lithium Project

Liontown owns the Kathleen Valley Lithium Project in Western Australia. It has a current Mineral Resource Estimate of 156Mt at 1.4% lithium. Over 80% of this is Measured or Indicated.

The project, which Liontown made the Final Investment Decision on last year, is one of the most significant new, long-life lithium projects being constructed anywhere in the world.

Liontown has commenced construction at Kathleen Valley and although this is progressing well, it has continued to make optimisations. Most notably, it has redesigned the project’s processing plant to have a 20% higher throughput.

 

Liontown Resources (ASX:LTR) share price chart (Graph: TradingView)

 

But more funding will be required

That’s the good news. The bad news is that the company will need more funding than it anticipated. It has $685m of funds, but now thinks it will need $895m.

The need for more funding is not immediate, given that only $73m has been spend. The company, however, has told investors it is looking at further funding options. Funding may not be needed for some months, not until the end of CY23. 

Although this news sent Liontown shares down 7% this morning, long-term shareholders are still in positive territory by a wide margin. 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

No credit card needed and the trial expires automatically.

 

 

Blog Categories

Get Our Top 5 ASX Stocks for FY25

Recent Posts

best stocks

5 Best Stocks Under $100 To Buy Now

If you’re new to investing and don’t have a lot of money to start with, will you be missing out…

Telix Pharmaceuticals on the Nasdaq

Telix Pharmaceuticals (ASX:TLX): Is there further upside to be excited for in FY25?

What would you have thought if you were told 5 years ago you would see Telix Pharmaceuticals as a successful…

like for like sales

Like for like sales: What does it mean and why do retailers use that creative term?

ASX retailers often use ‘like for like’ sales in addition to total sales. It is most common for companies that…