Shares of Liontown Resources Limited (ASX: LTR) are drifting lower today despite no market-sensitive news.
At the time of writing, shares in the lithium player are trading 3% down at $1.45 apiece.
While there's been nothing price sensitive from Liontown today, the company did release its annual report for investors to digest.
Optimism on lithium pricing
In his address to the annual report, Liontown chairman Tim Goyder gave a high-level view of the company's operations last financial year.
Goyder spoke fondly of the company's flagship asset, the Kathleen Valley Lithium project in Western Australia, noting it is progressing "rapidly towards development".
"At the heart of our success is the world-class quality, scale and location of the deposit [at Kathleen Valley]," he wrote.
Liontown is on the path to becoming a "significant provider of battery minerals for the rapidly growing clean energy market".
This is now a concentrated space with only a few players currently successful in delivering metal to mine in the same process.
All the hype boils down to the price of lithium, itself advancing to new all-time highs today at A$110,663 per tonne.
Those unlocking the risk capital to mine and produce lithium will be rewarded with such handsome market prices, in theory.
While there's been some doubt on the longevity of the lithium rally, Liontown's chairman is optimistic on future pricing.
Far from being a flash in the pan, these remarkable pricing outcomes are being driven by a systemic shortage of lithium raw materials through the supply chain and a growing recognition that demand will continue to grow significantly out to 2030 and beyond, requiring a significant investment in new supply.
Despite the optimism, Liontown shares are down more than 12% this year to date. They have also lost 12% over the past month of trade.
