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LTR - Liontown Resources

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Good morning
LTR SP has just taken a huge hit... in early trading after today's announcement (22/01/24)

The company is reviewing the planned expansion of its Kathleen Valley lithium project in WA as spodumene prices fall sharply, but says it remains on track for first production in the middle of 2024!!

"The recent material decline in spodumene prices has triggered significant reductions in short and medium-term lithium price forecasts. As a result, the company has commenced a review of the planned expansion and associated ramp-up of Kathleen Valley to preserve capital and reduce the near-term funding requirements of the project," Liontown says.

LTR has further commented tht finalisation of its $760m debt funding package with a syndicate of lenders has been impacted by recent reductions in independent forecasts for spodumene prices. "Accordingly, the company has now commenced discussions on a revised, smaller debt facility that will reflect the project review." The review includes looking at options to defer the timing of the previously-announced four million tonne per annum underground development work, sequencing adjustments to the mine plan, and scope for additional cost optimisations.

Not holding

Kind regards
rcw1
 

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rcw1 said:
Good morning
LTR SP has just taken a huge hit... in early trading after today's announcement (22/01/24)

The company is reviewing the planned expansion of its Kathleen Valley lithium project in WA as spodumene prices fall sharply, but says it remains on track for first production in the middle of 2024!!

"The recent material decline in spodumene prices has triggered significant reductions in short and medium-term lithium price forecasts. As a result, the company has commenced a review of the planned expansion and associated ramp-up of Kathleen Valley to preserve capital and reduce the near-term funding requirements of the project," Liontown says.

LTR has further commented tht finalisation of its $760m debt funding package with a syndicate of lenders has been impacted by recent reductions in independent forecasts for spodumene prices. "Accordingly, the company has now commenced discussions on a revised, smaller debt facility that will reflect the project review." The review includes looking at options to defer the timing of the previously-announced four million tonne per annum underground development work, sequencing adjustments to the mine plan, and scope for additional cost optimisations.

Not holding

Kind regards
rcw1
Click to expand...
I am holding and it feels like a hot spud stuck to the palm of my hand. This drop in SP is hurtful at present.
 
rcw1 said:
Good morning
LTR SP has just taken a huge hit... in early trading after today's announcement (22/01/24)

The company is reviewing the planned expansion of its Kathleen Valley lithium project in WA as spodumene prices fall sharply, but says it remains on track for first production in the middle of 2024!!

"The recent material decline in spodumene prices has triggered significant reductions in short and medium-term lithium price forecasts. As a result, the company has commenced a review of the planned expansion and associated ramp-up of Kathleen Valley to preserve capital and reduce the near-term funding requirements of the project," Liontown says.

LTR has further commented tht finalisation of its $760m debt funding package with a syndicate of lenders has been impacted by recent reductions in independent forecasts for spodumene prices. "Accordingly, the company has now commenced discussions on a revised, smaller debt facility that will reflect the project review." The review includes looking at options to defer the timing of the previously-announced four million tonne per annum underground development work, sequencing adjustments to the mine plan, and scope for additional cost optimisations.

Not holding

Kind regards
rcw1
Click to expand...
Someone correct me if I'm wrong... but did a major shareholder not just dump their shareholding and then two to three days later the company announced a strategic and funding overhaul?????

How does that pass the pub test? That's the fixed ASX casino for ya.
 
I think I might sell at a 40% loss and buy back later.

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daily short list.

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TimeISmoney said:
Yeah same here, I knew I should have dumped them when I could have broken even after months of waiting. I think they're going to be swarmed by negative news for a while, and the other issue is a possible takeover at a low SP.
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Same was hoping that the dip would be minor only sadly we have missed the boat and finished up in a tinny.
 
Wood Mackenzie’s analysis of lithium markets sparked controversy on Monday when it was cited by a lending syndicate including Commonwealth Bank, Westpac, NAB and ANZ as the reason for withdrawing a crucial loan to Liontown Resources.

2afe8a6075ed79b42b098949e3381bda4a9369f6.jpg

Liontown is building Australia’s next big, greenfields lithium mine at Kathleen Valley in Western Australia and, unlike most other Australian lithium mines, the project has no Chinese ownership.

Announcement of the $760 million loan in October had shaped as a landmark moment for Australia’s critical minerals sector, which had previously relied on shareholder equity and customer prepayments because mainstream banks were not confident in the nascent and opaque world of battery metals.

But Wood Mackenzie’s forecast for lithium prices to remain depressed for at least five years convinced the syndicate to withdraw the loan, triggering a 22 per cent slump in Liontown shares and forcing the miner to change the scope of its project and review its funding options.....

-A FR
 
Dona Ferentes said:
Wood Mackenzie’s analysis of lithium markets sparked controversy on Monday when it was cited by a lending syndicate including Commonwealth Bank, Westpac, NAB and ANZ as the reason for withdrawing a crucial loan to Liontown Resources.

View attachment 169386
Liontown is building Australia’s next big, greenfields lithium mine at Kathleen Valley in Western Australia and, unlike most other Australian lithium mines, the project has no Chinese ownership.

Announcement of the $760 million loan in October had shaped as a landmark moment for Australia’s critical minerals sector, which had previously relied on shareholder equity and customer prepayments because mainstream banks were not confident in the nascent and opaque world of battery metals.

But Wood Mackenzie’s forecast for lithium prices to remain depressed for at least five years convinced the syndicate to withdraw the loan, triggering a 22 per cent slump in Liontown shares and forcing the miner to change the scope of its project and review its funding options.....

-A FR
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Hopefully now that I have bailed out of LTR doesn't see a SP rise to prove me wrong.
 
farmerge said:
Hopefully now that I have bailed out of LTR doesn't see a SP rise to prove me wrong.
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I'm surprised how well the SP has held up a dead cat bounce maybe, but I'm a bit skeptical about their figures.

They're claiming an average of Au$ 651 a Tonne of high grade Li spod over 10 years which is possible, but in the start up phase it will be much more than that by looking at other start ups. In the last video they put out a figure for start up over the mid $700s.

CXO that's already in operation ceased mining due to Li prices and they're around Au$1000 a tonne, some other mines in the US have ceased operations on the same figure. LTR still has the court case with the royalty claim hanging over it AFAIK. If they have any problems on start up, the royalties figure goes up and the Li price comes down even more, they're going to be walking the knife edge. CXO is an open pit which is a lot cheaper to run and they're 88Kms from the local port where LTR is about 800kms.

With the line of credit pulled from under their feet, it makes things even look worse, they got offtake contracts that they won't disclose the actual sale price and conditions, and then they have a possible takeover by one of the main holders. Just for comparison CXO is already up and running and the SP went from $1.66 to 19 cents so what's the real value LTR?

All my my opinion.

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TimeISmoney said:
I'm surprised how well the SP has held up a dead cat bounce maybe, but I'm a bit skeptical about their figures.

They're claiming an average of Au$ 651 a Tonne of high grade Li spod over 10 years which is possible, but in the start up phase it will be much more than that by looking at other start ups. In the last video they put out a figure for start up over the mid $700s.

CXO that's already in operation ceased mining due to Li prices and they're around Au$1000 a tonne, some other mines in the US have ceased operations on the same figure. LTR still has the court case with the royalty claim hanging over it AFAIK. If they have any problems on start up, the royalties figure goes up and the Li price comes down even more, they're going to be walking the knife edge. CXO is an open pit which is a lot cheaper to run and they're 88Kms from the local port where LTR is about 800kms.

With the line of credit pulled from under their feet, it makes things even look worse, they got offtake contracts that they won't disclose the actual sale price and conditions, and then they have a possible takeover by one of the main holders. Just for comparison CXO is already up and running and the SP went from $1.66 to 19 cents so what's the real value LTR?

All my my opinion.

View attachment 169521
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LTR is not looking that flash, perhaps the mining Queen wil step up a rung. Her investment looks pretty sick on these figures, but I guess she can afford it.
 
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