LTR - Liontown Resources

[Stockbailx]

Forecast to breakeven in 2024

The 2 analysts covering Liontown Resources expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of AU$30.0m in 2024. Average annual earnings growth of 57% is required to achieve expected profit on schedule.

 

[Stockbailx]

Shareholder and Investor Webinar – Proposed Demerger & IPO of Non-Lithium Exploration Assets via Minerals 260 Limited ​

Friday, Sep 3, 2021 · 9:00 AM Perth (11:00 AEST)​ Further to its releases of 19 August 2021 providing details of the demerger and Initial Public Offer (IPO) of its non-lithium exploration assets in Western Australia via Minerals 260 Limited (Minerals 260), Liontown Resources is pleased to advise that the Managing Director of Minerals 260, David Richards, will be hosting a live shareholder and investor webinar commencing at 9.00am (WST) / 11.00am (AEST), Friday 3 September 2021. Mr Richards will run through a brief presentation on the new company’s projects and discuss the mechanism and timetable for the demerger and proposed pro rata in-specie distribution of shares in Minerals 260 to Liontown shareholders, before opening the forum to shareholder questions via the webinar platform. Shareholders and interested investors can join the webinar via the following link: https://www.bigmarker.com/read-corporate/Minerals-260-Demerger-and-IPO-Briefing It is recommended that you log on at least 10 minutes prior to the commencement of the webinar. Shareholders who would like to submit questions prior to the commencement of the webinar can email them to: info@readcorporate.com.au. IMPORTANT NOTICE REGARDING ELECTRONIC PROSPECTUS A copy of the Minerals 260 Limited prospectus can be downloaded from https://investor.automic.com.au/#/ipo/minerals260priority. ​

 

[greggles]

A 10 bagger in 13 months. Well done to all who have held through that time. Unfortunately I was not one of them.

It's starting to look like it might be topping out at $1 though. Triple top?

 

[Dona Ferentes]

Minerals 260 Limited (MI6) was incorporated as a wholly owned subsidiary of Liontown Resources Limited (ASX: LTR) in June 2021 for the purpose of spinning out certain assets held by Liontown, including 100% of the Moora Gold Nickel Copper PGE Project, an option to earn a 51% interest in the Koojan Gold /Nickel /Copper /PGE Project, the Dingo Rocks Project and tenement applications at Yalwest.

The spin out will occur by way of a pro rata in specie distribution of shares in Minerals 260 to Liontown shareholders. In conjunction with the proposed Demerger, Minerals 260 intends to undertake an IPO and will make an application for admission to the Official List of the ASX.

Listing date	11 October 2021 #
Company contact details	https://minerals260.com.au/ Ph: (08) 6556 6020
Principal Activities	Minerals 260's main business activity is mineral exploration and development.
GICS industry group	TBA
Issue Price	AUD 0.50
Issue Type	Ordinary Fully Paid Shares
Security code	MI6
Capital to be Raised	$15,000,000
Expected offer close date	22 September 2021
Underwriter	Not underwritten. Bell Potter Securities Limited (Lead Manager)

 

[Dona Ferentes]

LTR is just popping again.

and talk is that LTR will do it all again, tomorrow. Closed at $1.86 tonight

Mining entrepreneur Tim Goyder became Australia’s newest paper billionaire on Wednesday after the first two days of what, by Thursday evening, could be a remarkable critical minerals treble.

The lithium developer that counts Mr Goyder as chairman and 17 per cent shareholder, Liontown Resources, will on Thursday publish a feasibility study into a new Australian lithium mine and hopes to spark the sort of market frenzy generated by Tuesday’s news that Mr Goyder’s Chalice Mining had made one of the best Australian mineral discoveries since the turn of the century.

he then goes on to rattle the can:

“I think the endowment of nickel, lithium and rare earths in Australia is just outstanding,” he said. “Being a Western country we are going to be playing a very large part in smart technology, electric vehicles, the whole gambit.

“We are really well set. We just need governments to be very supportive and we can build on it as an industry.

“It would be great to see more downstream processing here and that is certainly something both Chalice and Liontown will be looking at.”

The construction of a plant to process Liontown’s lithium-rich spodumene rock into battery-grade lithium hydroxide within Western Australia is expected to be part of Thursday’s feasibility study.

 

[Dona Ferentes]

popping to the downside? Now $1.73 on release of Kathleen Valley DFS. Maybe there is a lot of money needed down the track?

• World-class lithium deposit with a globally significant Mineral Resource Estimate (MRE) of 156Mt @ 1.4% Li2O
• Exceptional economics, delivering a post-tax NPV8 of A$4.2bn and post-tax IRR of 57%
• Current resource base supports an initial ~23 year life of mine, with Liontown targeting further expansion
• Low cash operating costs of US$314/dmt (Years 1-5) and capital intensity below other spodumene development projects

• DFS contemplates an expansion of SC6.0 production from ~500ktpa to ~700ktpa facilitating downstream ambition
• Updated Downstream Scoping Study (post-tax NPV8 of A$9.6bn, IRR of 56%) provides value maximising pathway
• Actively progressing all funding options. Board confident that funding will be in place prior to FID Q2 2022
• Offtake discussions well advanced with potential customers, diversified by geography and stage in the value chain

A$3.6bn Market Cap.
Cash and liquid assets A$27.8m

Accelerated development
FEED/ FID ............................ Q2 2022
Early works/ design ............ Q4 2022
Construction complete ......... 2023
Commissioning Production .... Q1 2024
<3 years Target to production ... Q2 2024

 

[Dona Ferentes]

Australia’s next big lithium mine will cost 45 per cent more than previously expected because of inflationary pressures in the resources sector, but the proponent Liontown Resources said the $473 million spend would deliver a bigger project that was producing sooner to take advantage of an earlier lithium shortage.

An option to build a $1.5 billion refinery to make battery-grade lithium at the same Western Australian site will also cost 37 per cent more than was expected last year, and concerns over how the pre-revenue company would fund its $2 billion plans triggered a 12 per cent share price slump on Thursday.

- time to buy the contractors? Cost plus or margin; more dollars equates to better revenue numbers?

 

[bk1]

By mining a higher grade of Lithium?
Its not as good as Mt Holland, and nowhere near Greenbushes.
This is the reality of trying to realise downstream value of a mineral in Australia. Refining is only one stage, the Li ion battery value chain is:

• Mining
• Refining
• Cathode production
• Cell production
• Module assembly and finally,
• OEM

It costs too much in Australia, we do not have the skills and scale for the value add stages. That boat has sailed.

 

[Stockbailx]

Here's a announcement that sounds promising for investors, LTR has seen a decline in share price since early November and has track sideways since after an impressive 2021. Announce today signing a binding agreement (off-take term sheet) with LG Energy Solutions. For me this opens the door for them to have a boomer 2022....With there Lithium Project.

 

[Sean K]

Any ideas why this has been on the nose for the past 3 months?? Just a correction after overshooting? Lithium has just kept going...

The DFS numbers look OK. Just a 2 year payback.

Is this pullback an opportunity... Looks like $1.40 region is support.

Might depend if you think lithium needs a correction soon too I suppose.

 

[greggles]

LTR in the Orphan Period? The inevitable hangover after all that excitement and "we're going to the moon!" optimism? There has to be a lot of profit taking going on at the moment given its epic run. If I had bought in under 25c I would definitely be exiting over $1.50 to lock in profits.

 

[Sean K]

LTR in the Orphan Period? The inevitable hangover after all that excitement and "we're going to the moon!" optimism? There has to be a lot of profit taking going on at the moment given its epic run. If I had bought in under 25c I would definitely be exiting over $1.50 to lock in profits.

View attachment 137529

Spot on I think Greggles. Might try and ride that second hump. Perhaps once they get funding in place that will be the base. Offtake agreement might really be a catalyst.

Funding & Offtake Advanced:

• Actively progressing all funding options. Board confident that funding will be in place prior to FID Q2 2022.
• Offtake discussions well advanced with potential customers, diversified by geography and stage in the value chain.

 

[Sean K]

LTR in the Orphan Period? The inevitable hangover after all that excitement and "we're going to the moon!" optimism? There has to be a lot of profit taking going on at the moment given its epic run. If I had bought in under 25c I would definitely be exiting over $1.50 to lock in profits.

View attachment 137529

Maybe this will give it a kick.

 

[greggles]

Maybe this will give it a kick.

View attachment 137619

That's the sort of announcement the market was looking for, and a high profile deal with Tesla makes it even more appealing. It's also useful to have a clear time line for production, and it looks like 2024 is the year that LTR expect to start mining and generating revenue.

As expected, the LTR share price is up following the announcement.

 

[greggles]

Some great assay results announced by LTR today. Solid grades and widths that have expanded the known area of mineralisation at the Anna Deposit and Northwest Prospect. Mineralisation is open in all directions at the Northwest Prospect while mineralisation is open at depth at the Anna Deposit.

 

[Stockbailx]

Some great assay results announced by LTR today. Solid grades and widths that have expanded the known area of mineralisation at the Anna Deposit and Northwest Prospect. Mineralisation is open in all directions at the Northwest Prospect while mineralisation is open at depth at the Anna Deposit.

That should boost their confidence, expecting good things from LTR. Should tie in nicely with their agreement with Tesla...

 

[Dona Ferentes]

Liontown Resources has completed negotiations with LG Energy Solutions and executed its first definitive full form offtake agreement for the supply of spodumene concentrate from its flagship Kathleen Valley lithium project.

The agreement with South Korean-based LG is largely consistent with the terms detailed in its January announcement, which includes the supply of up to 150,000 dry metric tonnes per annum of spodumene concentrate expected to commence in 2024.

 

[Boggo]

Showing signs of a turnaround. I'm in again now.

 

[Dona Ferentes]

Liontown Resources is committing to its wholly owned Kathleen Valley lithium project with a final investment decision following securing an offtake agreement with Ford. Liontown has upgraded its estimated capital cost on Kathleen Valley from $473 million to $545 million.

First production of spodumene concentrate from the WA mine is scheduled for the second quarter of 2024.

Shares lifted 5.2 per cent to $1.12.

 

[Sean K]

Liontown Resources is committing to its wholly owned Kathleen Valley lithium project with a final investment decision following securing an offtake agreement with Ford. Liontown has upgraded its estimated capital cost on Kathleen Valley from $473 million to $545 million.

First production of spodumene concentrate from the WA mine is scheduled for the second quarter of 2024.

Shares lifted 5.2 per cent to $1.12.

I wonder what all this additional supply is going to do to the price of Li. Is it another boom/bust thing? I think it was Goldman saying another boom/bust type situation, but there were counter arguments that this times it's different. Maybe potential global recession is the key difference and demand will stall for a while.