Liontown shares fall despite on-schedule production update
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More news: Shares in Liontown Resources lowered at the start of trading on the ASX after the lithium miner said its first shipment of spodumene concentrate from its Kathleen Valley project was on track for the end of September.
Liontown shares fell 2.7% to $0.63 at 10:35am AEST as the wider market lost 1.48%.
Lithium prices this year have tumbled and are expected to stay lower for longer due to an oversupply along with an uncertain demand outlook outside of China. Citi analysts also noted earlier this week that Talison LIthium's Greenbushes spodumene mine in Western Australia was the "only operation making money".
Liontown set for first shipment by end-September
The news: Lithium miner Liontown Resources says it is on track for first shipment of spodumene concentrate by the end of September after ramping up production at its Kathleen Valley project in Western Australia.
The numbers: The company said it has produced more than 10,000 tonnes of concentrate since announcing first production at the end of July, with about half of this already transported to Geraldton Port ahead of the first shipment.
The concentrate produced to date has a weighted average grade of 5.2% lithium oxide, in line with expectations.
The context: Liontown, which counts billionaire Gina Rinehart as a key shareholder, plans to ramp up output at its flagship Kathleen Valley mine — one of the world’s biggest lithium projects — to 3 million tonnes a year by the end of the first quarter of 2025.
The company has signed up a number of offtake agreements to supply concentrate from the project, including with China’s Beijing Sinomine International Trade, South Korean battery producer LG Energy Solution, as well as Tesla and Ford.
The sources: ASX announcement, Citi research
