Liontown promises lithium production at Kathleen Valley by mid 2024, but it might need more capital
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
Recent Posts
Tigers Realm Coal (ASX:TIG): Its making an awkward exit from Siberian coking coal, but what’s next?
Tigers Realm Coal (ASX:TIG) has been one of the few ASX stocks (if not the only ASX stock) with direct…
Is a soft landing still likely in Australia in 2024?
Is Australia still set for a soft landing? For some months now, it was thought the answer was a firm…
Johns Lyng Group (ASX:JLG): One of a few ways to profit from climate change
Johns Lyng Group (ASX:JLG) is a restoration services company, repairing properties after damage by insured events, including weather and other…