Liontown Resources extends rally following Friday's half-year results
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The news: Liontown Resources continued to surge on Monday, adding to gains on Friday after the lithium miner reported half-year earnings that largely met market expectations.
The numbers: Liontown shares were up 8.5% to 70 cents at 1:40pm AEDT, having closed 4.9% higher in the previous session.
Analysts largely retained their ratings on the miner following the first-half result.
Citi, Macquarie and Goldman Sachs all kept their 'neutral' ratings and respective target prices of 60 cents, 65 cents and 69 cents.
Bell Potter kept its 'buy' rating and lowered its target price from $1.40 to $1.25. Morgans maintained its 'hold' rating and cut its target price from 68 cents to 66 cents.
The context: Analysts were generally positive on the progress of Liontown's Kathleen Valley spodumene mine, which is currently in the ramp-up phase.
Bell Potter analyst Stuart Howe said Kathleen Valley remains "highly strategic" in terms of scale, long project life and location in a tier-one mining jurisdiction.
Likewise, Morgans analyst Annabelle Sleeman said the site's recently revised mine plan provides the company with optionality in the current low priced environment. However, she warned that there is still a risk to near-term liquidity and funding if lithium prices remain at current levels.
Macquarie analysts also flagged that Liontown will have to navigate "challenging waters in a difficult lithium market", including prudent cost management, particularly if spodumene prices to not improve from their current levels.
The sources: Citi research, Macquarie research, Goldman Sachs research, Bell Potter research, Morgans research
