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.

 

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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. 

 

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