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LTR - Liontown Resources

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Liontown Resources share price has slumped in a sign investors see little hope for Albemarle’s $6.6 billion takeover tilt at the lithium play after Gina Rinehart boosted her stake to 19.9 per cent.

Albemarle now faces the prospect of having to work in partnership with Australia’s richest person or walking away from Liontown after a pursuit that started a year ago.
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so, where's it now? as low as $2.85 as reality sets in. GR is playing a good long game; it could easily slump to mid $2's or lower (look at PLS), after the scalpers lick their wounds. Then, a 'competitive ' bid ... so much better an outcome than a bidding war.
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Collared by the new cap
Screenshot_20231012-145938_CommSec.jpg
 
and so it came to pass. ..now in a trading halt. last price 2.79, likely to open lower. Discounted equity raise down the track?
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Albemarle and Liontown not proceeding with proposed scheme of arrangement
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Albemarle has now advised that it has withdrawn its Indicative Proposal, and that it will not be proceeding with its proposed acquisition of Liontown.

Albemarle has advised Liontown that its decision to withdraw its proposal was due to the growing complexities associated with executing the transaction.

Albemarle has confirmed to Liontown its favourable view of the flagship Kathleen Valley project and Liontown’s management.
 
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LTR back trading ... and down 30 per cent. .... was as low as 1.82 at open but clawing its way up. Today's action:

Screenshot_20231020-135351_CommSec~2.jpg
There's a debt and equity package (shares offered at $1.80) to get the Kathleen Valley mine going.

Highlights
• Signed commitment letter and credit approved term sheet with a syndicate of leading international and domestic commercial banks and government credit agenciesfor an A$760 million debt funding package
• Debt funding on very attractive commercial terms and includes long duration project finance facilities and an optional cost overrun / working capital facility
• Equity raising of A$376 million, comprising a fully underwritten institutional placement to raise A$365 million plus a non-underwritten conditional placement to Mr Timothy Goyder for 6 million shares (equivalent to A$10.8 million)
• Opportunity for existing eligible shareholders to participate via a non-underwritten share purchase plan to raise up to a further A$45 million
• Proceeds from debt and equity raising will be used towards refinancing existing Ford debt, completing construction and ramp up of the Project, fully funding Liontown to first production and beyond, and providing a prudent liquidity buffer to maintain a robust balance sheet
• Kathleen Valley remains on track to commence production in mid-2024
 
Dona Ferentes said:
LTR back trading ... and down 30 per cent. .... was as low as 1.82 at open but clawing its way up. Today's action:

View attachment 164315
There's a debt and equity package (shares offered at $1.80) to get the Kathleen Valley mine going.

Highlights
• Signed commitment letter and credit approved term sheet with a syndicate of leading international and domestic commercial banks and government credit agenciesfor an A$760 million debt funding package
• Debt funding on very attractive commercial terms and includes long duration project finance facilities and an optional cost overrun / working capital facility
• Equity raising of A$376 million, comprising a fully underwritten institutional placement to raise A$365 million plus a non-underwritten conditional placement to Mr Timothy Goyder for 6 million shares (equivalent to A$10.8 million)
• Opportunity for existing eligible shareholders to participate via a non-underwritten share purchase plan to raise up to a further A$45 million
• Proceeds from debt and equity raising will be used towards refinancing existing Ford debt, completing construction and ramp up of the Project, fully funding Liontown to first production and beyond, and providing a prudent liquidity buffer to maintain a robust balance sheet
• Kathleen Valley remains on track to commence production in mid-2024
Click to expand...
Where can I get the share purchase plan to buy in?
 
Rabbithop said:
Where can I get the share purchase plan to buy in?
Click to expand...
if you hold LTR, already, you'll get a form .. email or snail.

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- Dispatch SPP Offer Documents and SPP Offer open date Monday, 30 October 2023
- SPP closing date 5.00pm, Monday, 20 November 2023
- Announcement of SPP Participation Results Monday, 27 November 202
 
business as usual
Screenshot_20231021-123023_Chrome.jpg

...
until its not:
"Some .. bankers were also understood to be ...talking to Hancock Prospecting about its longer-term lithium strategy.

"What happens next is unclear, although it would appear Rinehart cannot seize on Liontown’s freshly diluted share price with an opportunistic takeover bid.

"Under the “minimum bid price rule”, any takeover bid must match or exceed the highest price paid by the bidder for the relevant stock in the previous four months.

"That means Rinehart would need to wait until February if she wants to make a takeover bid for Liontown that is steeply below the $3 per share range."

TBC
 
With the demise of the LTR share price after the failed non event takeover and the Mining Queen holding a large chunk, I was surprised to see that I am not yet sitting at the bottom of the totem pole in the Competition.
 
Good morning
What's impressing the analysts or not!!
  • Liontown Resources cut to Underweight; $1.60 price target: Barrenjoey
  • Liontown Resources cut to Underweight; $1.30 price target: JPM
Have a very nice week.

Kind regards
rcw1
 
rcw1 said:
Good morning
What's impressing the analysts or not!!
  • Liontown Resources cut to Underweight; $1.60 price target: Barrenjoey
  • Liontown Resources cut to Underweight; $1.30 price target: JPM
Have a very nice week.

Kind regards
rcw1
Click to expand...
Yeah, but why would they drop below the $1.80 equity raise price? And are retail shareholders getting the same offer?
 
Colm Doc said:
Yeah, but why would they drop below the $1.80 equity raise price?
Click to expand...
Good evening Colm Doc

For mine, one must be most careful ... with analysts' advice ... they can be quite wicked... you never quite know for sure the whysssssssssssssssssssssssss ... and motivation behind it.

Anyways, underweight means the expected return is below the benchmarked average return of whatever had been chosen as the one point of comparison ... might be the market, the sector or in this case Lithium miners. One way or another, according to these analysts there is an expectation of poor performance.

Quite simply you could view this as an indication that the analysts think the stock isn't as attractive as others.
So then, at the end of the day and when the dust settles, yes it could go below the equity raise price, how much below, who would know for sure ... Why would they drop below??? It is a market, prices go up and prices go down for any number of reasons. The equity raise price simply may not be compelling enough in the opinion of the analysts, with market forces, to keep the price from falling below $1.80.

Colm Doc said:
And are retail shareholders getting the same offer?
Click to expand...
Existing eligible shareholders, being those shareholders that are residents in Australia or New Zealand that held Liontown shares as at 7.00pm AEDT on Wednesday, 18 October 2023 (“Eligible Shareholders”) will be invited to participate in a non-underwritten SPP2

Hope this helps

Kind regards
rcw1
 

Attachments

  • Capital-Raising-Presentation.PDF
    1.2 MB · Views: 8
rcw1 said:
Existing eligible shareholders, being those shareholders that are residents in Australia or New Zealand that held Liontown shares as at 7.00pm AEDT on Wednesday, 18 October 2023 will be invited to participate in a non-underwritten SPP
Click to expand...
the pricing may be lower than $1.80, depending on time /price.
...
In addition, Liontown will invite existing eligible shareholders in Australia and New Zealand to participate in a non-underwritten Share Purchase Plan to raise up to a further A$45 million at a price equal to the lower of
(a) the offer price for the Placement; and
(b) a 2% discount to the 5 day volume weighted average price of Liontown shares up to and including the closing date of the SPP .

sometimes this calculation in (b) can be beneficial, sometimes not.
rcw1 said:
Hope this helps
Click to expand...
 
... Up to A$30,000 per Eligible Shareholder, targeting a maximum of up to ~A$45 million
:)
...

Subject to shareholder approval, Timothy Goyder has undertaken to purchase 6 million shares at the Placement Price via the Conditional Placement (A$10.8m)
• All other eligible members of Liontown’s Board of Directors intend to participate in the SPP

awfully kind of the BoD
ha ha ha ha

Kind regards
rcw1
Dona Ferentes said:
the pricing may be lower than $1.80, depending on time /price.
...
In addition, Liontown will invite existing eligible shareholders in Australia and New Zealand to participate in a non-underwritten Share Purchase Plan to raise up to a further A$45 million at a price equal to the lower of
(a) the offer price for the Placement; and
(b) a 2% discount to the 5 day volume weighted average price of Liontown shares up to and including the closing date of the SPP .

sometimes this calculation in (b) can be beneficial, sometimes not.
Click to expand...
 
Good morning @Colm Doc
This is where there are mixed analyst signals … maybe Wilson’s used a different benchmark than Barrenjoey and JPM, Unless something has changed dramatically past 12 or so hours …

Liontown Resources raised to Overweight: Wilsons

ha ha ha ha ha ha they crack rcw1 up …
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Have a very nice day today

Kind regards
Rcw
 
Once again have chosen LTR for the November Competition.
After what seemed like a healthy start to October my chosen choice then plummeted to the nether regions of thr ladder mainly thanks to the Mining Queen.
As it sits now at a lowly $1.61, surely it can't drop any further.
So with this in mind I am thinking the only way is now up,
Perhaps a good reason for day traders to tak a serious look at LTR over the coming weeks.
 
farmerge said:
Once again have chosen LTR for the November Competition.
After what seemed like a healthy start to October my chosen choice then plummeted to the nether regions of thr ladder mainly thanks to the Mining Queen.
As it sits now at a lowly $1.61, surely it can't drop any further.
So with this in mind I am thinking the only way is now up,
Perhaps a good reason for day traders to tak a serious look at LTR over the coming weeks.
Click to expand...
Hope not but a may be low of 1.20 to 1.40..if.....
 
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