Gina Rinehart's Hancock increases Liontown stake to 12.4%
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More news: Gina Rinehart's Hancock Prospecting has increased its stake in battery-focused miner Liontown Resources to 12.4% after the takeover target released higher costs for a key WA lithium project.
Hancock's stake in Liontown increased from 10.7% and followed another strategic buy-up on Monday.
What they said: "Whilst Hancock continues to see Liontown's Kathleen Valley project as a significant lithium asset, Liontown's update to the ASX earlier today reinforces Hancock's previous observations that the project faces significant execution, operational and ramp-up risks," Hancock said in a media release.
Liontown raises cost estimate for lithium project
The news: Takeover target Liontown Resources has raised the estimated cost for bringing its key Kathleen Valley lithium project in WA to production in mid-2024.
The numbers: Liontown raised the capital cost estimate for the Kathleen Valley project to $951 million, a 6% increase on its previous forecast of $895 million. Shares in the company were down 1.7% to $2.93 in early trading on the ASX.
The context: Chief executive Tony Ottaviano said with 50% of the work completed on site and construction work accelerating, Liontown had clear line of sight to delivering first production on schedule in mid 2024. This comes in the midst of a takeover bid by US battery chemicals giant Albermarle, which has offered $3 a share. But the deal could come under a cloud after Gina Rinehart’s Hancock Prospecting this month lifted its stake in the Perth-based miner to 10.69%, giving it a say in the future of one of the world’s biggest lithium projects.
The sources: ASX announcement, ASX announcement
