LTR share price momentum- how are developments faring? - Kalkine Media

January 20, 2023 03:24 PM AEDT | By Sukriti
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Highlights

  • Liontown Resources (ASX:LTR) is a Tier-1 battery minerals producer.
  • LTR is making progress with its downstream strategy, aiming to develop and implement a value-maximising pathway to unlock Kathleen Valley asset’s full value.
  • As per ongoing optimisation, there is a chance to expand initial plant capacity, with an updated capital estimate reflecting scope changes and industry-wide cost escalation.

Liontown Resources (ASX:LTR) aims to be an ESG leader and a provider of battery minerals for the swiftly growing clean energy market. The company commenced on-site construction activities at Kathleen Valley in October 2022, at its 100%-owned Kathleen Valley Lithium Project. The first production from the process plant is likely to be delivered by the middle of next year.

How is Kathleen Valley Lithium Project progressing?

LTR has made rapid progress across all aspects of the Project-

  • Key site-based contracts involving the accommodation village, concrete supply and installation, earth works, Tailings Storage Facility, Power Purchase Agreement have been awarded, besides preliminary works for the open pit mining contract.
  • Site works consisting of installation of the accommodation village, concrete installation, and preparation for the beginning of open pit mining are advancing.
  • Structural Mechanical Piping and concentrate transport packages have also been put to tender.
  • Tender requests for the underground mining contract and Mine Services Area design and construct contract are being prepared.
  • Recent mine plan optimisation work has reduced the operational complexity of the DFS mine plan.
  • The revised capital estimate is AU$895 million for first production (incl. AU$40 million in contingency).

What does LTR expect?

The Kathleen Valley Project remains on-track for first production from the process plant in mid-2024. For this, initiation of underground mine development is targeted for Q4, 2023. LTR expects initial plant throughput capacity to be 3Mtpa, which might result in early availability of additional SC6.0 product for sale on the spot market or via incremental off-take arrangements.

Further, LTR believes mining activities can meet increased plant throughput requirements based on existing Ore Reserves.

Why is Kathleen Valley significant?

Kathleen Valley is a significant new long-life lithium project, with a portfolio of three Tier-1 foundation customers. It is ideally positioned to capitalise on robust forecast demand for lithium raw materials over short- and medium-term.

Kathleen Valley power station is expected to be the largest off-grid wind-solar-battery storage hybrid power station for a mining project in Australia.

Source: © Lovelyday12 | Megapixl.com

 LTR share price performance

Mid-day on 20 January 2023, LTR share price on the ASX was AU$1.31, the trading volume being over 44 million. The market capitalisation stood at AU$3.29 billion.

As the global lithium market continues to go from strength to strength, with lithium raw materials hitting record prices during FY22 and continuing the trajectory in the first part of FY23, it will be interesting to see how Liontown makes the best use of its assets and opportunity.


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