Liontown Resources shares roar 5% higher on quarterly update

Why are this lithium developer's shares racing higher today? Let's find out.

| More on:
Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Liontown Resources Ltd (ASX: LTR) shares are pushing higher on Monday.

In morning trade, the lithium developer's shares are up almost 5% to $1.01.

This follows the release of the company's quarterly update before the market open.

Liontown shares storm higher on quarterly update

It was a very busy quarter for Liontown, with the company rapidly approaching the commencement of production at the Kathleen Valley Lithium Project in Western Australia.

According to the release, the project was over 95% complete overall on an earned value basis by the end of June 2024. Process plant critical path items were completed and commissioning advanced to schedule.

A total of 3.8 million work hours were spent on the project with a total recordable injury frequency rate (TRIFR) of 5.99.

It also notes that significant progress was achieved in underground mining for the quarter, with 1,596 total development metres recorded. This brings the total development metres to ~3,500 since the commencement of underground mining in November.

Pleasingly, metres advanced and ground conditions remain on budget and in-line with expectations.

Another positive is that Kathleen's Corner open pit mining progressed with 1.3 million bulk cubic metres (BCM) mined. This contributed 216,000 tonnes of clean ore stockpiled ahead of initial production.

And importantly, mining is on schedule to access the primary ore zone in the September 2024 quarter, which is consistent with the production schedule. By quarter end, Liontown advised that a total of 311 employees had been onboarded. This ensures readiness for the impending start of operations.

At the end of the quarter, the company had a cash balance of $122.9 million. It has since signed a strategic partnership to deliver long-term funding.

'A major milestone'

Liontown's managing director, Tony Ottaviano, was pleased with the quarter. He said:

Following another huge effort from our Project team and contractors, we finished the June quarter on the cusp of completing the development required for first production at Kathleen Valley.

A major milestone reached post-quarter was the signing of the US$250 million convertible note agreement with LG Energy Solution. The agreement, which came with a commitment to supply LG Energy Solution with additional offtake and an undertaking to work together on a downstream refinery, provides the balance sheet capacity to fund the Kathleen Valley ramp-up to 3Mtpa as well as early underground works to preserve the 4Mtpa expansion option on a 2027 timeframe.

In the meantime, we remain focused on achieving first production, ramp-up and solidifying Liontown's position as a major new producer and supplier of lithium raw materials.

Liontown shares remain down 62% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Pilbara Minerals shares jumps 10% on big news

This lithium miner is having a day to remember on Wednesday. But why?

Read more »

Three miners looking at a tablet.
Materials Shares

Why Bell Potter says this ASX mining stock is a top buy

Let's see which stock the broker is tipping to deliver big returns.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »