First production at Liontown's Kathleen Valley lithium project 'imminent'
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The news: Liontown Resources said first production at its Kathleen Valley lithium project is "imminent" after construction of the process plant was "substantially completed" in the June quarter.
The numbers: In a quarterly activities update, the critical minerals miner said that Kathleen Valley was more than 95% complete on an earned value basis by the end of June. The project's process plant was around 99% complete, with commissioning "advanced to schedule".
The Perth-based company also recorded cash balance of $122.9 million by the end of June, compared with $358.1 million at 31 March.
Liontown shares lifted 2.1% to $0.99 by 11:25am AEST.
The context: Liontown said its signing of the USD250 million ($372 million) convertible note agreement with South Korean battery producer LG Energy Solution earlier this month was a “major milestone” for the project.
The agreement will provide the balance sheet capacity to fund the Kathleen Valley ramp-up to 3 million tonnes per annum (Mtpa), as well as early works to preserve the option of a 4Mtpa expansion by 2027, the company said.
What they said: Liontown's managing director Tony Ottaviano commented: "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."
"[...] 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," he said.
The source: ASX announcement
