Consensus community valuation
A total of 3.8 million work hours on the Project and a total recordable injury frequency rate (TRIFR) of 5.99 at the end of the quarter. • Process plant construction stood at ~99 percent completion at quarter end ahead of first production. Overall, Project completion on an earned value basis exceeded 95 percent.
The Company’s cash balance was A$122.9 million as at 30 June 2024. (Refer subsequent funding announcement).
Lithium Carbonate Prices:
The tariff game-
Generally Li Battery contains 7% Lithium:
Oil Reserves:
Power station commissioning in progress
>60% renewable power from start-up on track
31,000 solar panels, 5 x 6MW wind turbines installed, commissioning and integration to power station grid commenced
18 MW/h battery storage installed
100% redundancy from 6 x gas engines and diesel generation on-line
HotCopper | ASX Share Prices, Stock Market & Share Trading Forum
- The proposed 4mtpa underground mining operation would make KV one of Australia's largest underground mining projects. There is significant execution risk in the development in this mine due to the sheer size of volume required and lack of comparability (KV is the first large scale UG lithium mine).
- The orebody appears to host thin-grained spodumene crystals which will require floatation recovery - This places further strain on the capex requirements as floatation circuts are more complex and costly than tradition dense media separation (DMS).
Gina R paid $3 pe share for LTR.....
No Profit = No Business
Return (inc div) 1yr: -49.81% 3yr: 45.09% pa 5yr: 66.32% pa
22 Jan 2024 Article below
Everything you need to know about Liontown's selloff and Gina Rinehart's silence (marketindex.com.au)
Lithium Carbonate; Has this market got a 'heart beat'..breathes once per minute...
Estimated quarters of funding available: 38Months ...should keep the LTR fiscal lights on.
Liontown’s Managing Director, Tony Ottaviano said: “The March Quarter saw tremendous progress across all major work fronts at Kathleen Valley, with construction of the process plant, the critical path to first production, being 90 percent complete on an earned value basis. We remain confident in our ability to deliver our Tier-1 lithium project on budget and schedule to first production by mid-2024. “The execution of the A$550 million debt package was significant, providing access to capital to see Kathleen Valley into first production, ramp-up to 3Mtpa and positive cashflow. Securing capital from a leading international and domestic syndicate, as well as government agencies, further reinforces the strength of the underlying technical and financial qualities of Kathleen Valley and provides a very strong endorsement of our Project.
“As announced during the quarter, we are currently reviewing and examining the options for deferring the 4Mtpa mine expansion until market conditions improve. The review is progressing well and we are aiming to release the results to the market by the end of the upcoming quarter. “We are within touching distance of first production and in a very strong position financially with $358.1 million in the bank, together with the undrawn commercial debt facility, providing us sufficient funding through to first production and beyond.”
Liontown’s Managing Director, Tony Ottaviano said: “The March Quarter saw tremendous progress across all major work fronts at Kathleen Valley, with construction of the process plant, the critical path to first production, being 90 percent complete on an earned value basis. We remain confident in our ability to deliver our Tier-1 lithium project on budget and schedule to first production by mid-2024.
“The execution of the A$550 million debt package was significant, providing access to capital to see Kathleen Valley into first production, ramp-up to 3Mtpa and positive cashflow. Securing capital from a leading international and domestic syndicate, as well as government agencies, further reinforces the strength of the underlying technical and financial qualities of Kathleen Valley and provides a very strong endorsement of our Project.
*** “As announced during the quarter, we are currently reviewing and examining the options for deferring the 4Mtpa mine expansion until market conditions improve. The review is progressing well and we are aiming to release the results to the market by the end of the upcoming quarter.
“We are within touching distance of first production and in a very strong position financially with $358.1 million in the bank, together with the undrawn commercial debt facility, providing us sufficient funding through to first production and beyond.”
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report:
Return (inc div) 1yr: -55.84% 3yr: 50.51% pa 5yr: 116.01% pa
1year Chart:
Three Companies Leading the Rise of Lithium & Battery Technology - Global X ETFs - Australia
Conclusion: The Electric Mobility Opportunity Is More Than the EV
The EV value chain is vast, and the four companies highlighted in this piece have been significant players in its growth. Along with these firms, many other lithium miners and battery producers are enabling the transition toward EVs. We believe the lithium and battery industries remain in their early stages, but we expect them to grow significantly as electrified mobility options displace conventional means of transportation. For investors, understanding the full scope of how an EV makes its way to the road can help them capture paradigm-shifting growth in their portfolios.
Related Funds
ACDC: The Global X Battery Tech & Lithium ETF (ASX: ACDC) invests in global companies developing electro-chemical storage technology and electric vehicles as well as mining companies producing battery-grade lithium.
I checked ETF performance:
Yep the return explains the conditions Tail vs Head Winds in the sectors-
CURE Return (inc div) 1yr: 7.30% 3yr: -10.93% pa 5yr: 0.33% pa
FANG: Return (inc div) 1yr: 68.82% 3yr: 18.98% pa 5yr: N/A
ACDC: Return (inc div) 1yr: 1.62% 3yr: 3.79% pa 5yr: 17.44% pa
NDIA: Return (inc div) 1yr: 22.66% 3yr: 16.55% pa 5yr: N/A
A bit rubbery- Generally Lithium market has blown-up Supply vs Demand problem..No wonder BHP didn't believe the lithium story.
Standards and Interpretations in issue not yet adopted The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the period ended 31 December 2023. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no change is necessary to Group accounting policies. (e) Going Concern The interim financial report has been prepared on the going concern basis, which assumes continuity of normal business activity and the realisation of assets and settlement of liabilities in the ordinary course of business.
For the half year ended 31 December 2023 the Group incurred a net loss of $31.0 million (31 December 2022: $6.9 million net loss), and experienced net cash outflows from operating and investing activities of $344.3 million (31 December 2022: $64.1 million).
As at 31 December 2023 the Group held cash and cash equivalents of $516.9 million (31 December 2022: $384.0 million), had an excess of current assets over current liabilities of $461.7 million (31 December 2022 $345.9 million)
and had outstanding contractual capital commitments for the acquisition of property, plant and equipment for the Kathleen Valley Lithium Project (Project) of $238.5 million (30 June 2023: $211.6 million). As at 29 February 2024, being the most recent month end prior to the approval of the interim financial report, the Group’s cash and cash equivalents was $416.1 million. On 22 January 2024 the Group announced that as a result of recent material declines in spodumene prices, it was conducting a review of the planned 4Mtpa expansion and associated ramp-up of the Project to preserve capital and reduce near-term funding requirements.
Market at the most pessimistic sentiment..could be time to buy!!!!!!!!
And..
On 13 March 2024 the Group announced that it had entered into a $550 million debt facility agreement (Debt Facility) with a syndicate comprising leading domestic and international commercial lenders, and government credit agencies. The Debt Facility matures on 31 October 2025 and, if not refinanced or repaid sooner, is repayable via a bullet payment on the maturity date. The proceeds drawn under the Debt Facility will be used to refinance the existing Ford Facility, as well as to fund Project related costs and meet the Group’s working capital requirements. Drawdown of the Debt Facility is subject to conditions precedent to both first utilisation and subsequent drawdown, which have not been met at the date of this report. The Directors believe that all conditions precedent to first utilisation and subsequent drawdown will be satisfied prior to utilisation and subsequent drawdown having consideration to the nature of the remaining conditions precedent.
Suspension from quotation.
Not good especially for Gina.
Maybe Bill Beament made the best decision for DVP in pulling out of the contract?
Big news today on Liontown with the takeover called off due to complications with the transaction.Most likely they are referring to Gina's 20% strategic stake in Liontown.
As if the takeover cancellation was not bad enough for shareholders, Liontown also announced a trading halt for additional funding.
Will be interesting to see how the share price reacts once the trading halt is lifted.
Maybe a good time to invest now the takeover uncertainty has been lifted?
29/9/23 Gina and HHPL hold 12.36%
29/9/23 FY23 Report released
29/9/23 price CNY/T: 166,500
1/9/2023:
Lithium Trends Lower: So Ho Hum here...
Lithium carbonate prices sank further in August, dropping below the CNY 215,000 per tonne mark for the first time since May and approaching the two-and-a-half-year low of CNY 165,500 touched in April April amid compounding signs of low demand for key battery manufacturers. Battery manufacturers for new energy vehicles phased out buying activity since the start of the third quarter as their input inventories filled up and funds from previous government-led subsidies dried. The concerning macroeconomic backdrop for the Chinese economy also translated to low consumer spending for electric automobiles, resulting in expectations of further deflation in the third quarter after data showed that the CPI declined in July. Despite a 32% year-on-year growth in new energy vehicle sales during the period, reports showed that 10 Chinese new-energy vehicle producers offered new rounds of price cuts to meet second-half sales targets.
19/7/23
Deal with Qube Holdings Haulage contract. 5yr Term
Port of Geraldton, is valued at approximately A$175 million over the five-year contract term
The contract will generate around 45 new positions and the Quad-trailers will be sourced in Western Australia.
Liontown Resources (ASX:LTR) is an emerging Tier-1 battery minerals produce.
Extrapolate #s Haulage cost: Wages $6.750Mill = (45 x $150,000) x 5yr
How much do Quad - trailers cost? $1Mill ea say $45million.
Maybe port upgrades = few $Mill
ect
16/5/23: Growth Return (inc div) 1yr: 141.15% 3yr: 215.66% pa 5yr: 161.93% pa Now thats capital GROWTH
Market Cap $2,455Mill
current price $1.00 at 1/6/22
issued shares: 2,191
First Production circa 2024
various off-take agreements
29/6/22 - Debt facility provided by Ford ( circa $300Mill ), along with proceeds from Liontown’s A$463m capital raise in December 2021, means Kathleen Valley is now funded to first production.
This afternoon: Person’s votes Voting power
272,291,417 12.36%
Funding By the end of FY23, $556 million, approximately 62 percent of forecast project expenditure, had been committed. Remaining funding at 30 June 2023 was $485.8 million, comprising approximately $304.5 million in existing cash reserves and $181.3 million remaining undrawn under the Ford debt facility. At the end of FY23, negotiations were well advanced on a range of further funding options to deliver the Kathleen Valley Lithium Project into production. Securing additional funding is anticipated well ahead of the requirement for funding.
- Note: Tony Ottaviano Managing Director / CEO
Shareholder Return is 50% Upon Vesting ..so good weight for a profitability focus.
Euroz Hartleys Trade..
Gina who holds 4.9% stake
Big lick of Liontown shares trade amid takeover; eyes on Gina Rinehart (afr.com)
S&P DJI Announces September 2023 Quarterly Rebalance:
S&P/ASX 100 Index – Effective Prior to the Open on September 18, 2023
The rest of them Here: HASTINGS TECHNOLOGY METALS LTD (ASX:HAS) - Ann: S&P DJI Announces September 2023 Quarterly Rebalance, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum
S&P/ASX 200 Index – Effective Prior to the Open on September 18, 2023
S&P/ASX 300 Index – Effective Prior to the Open on September 18, 2023
“Liontown really is powering ahead on all fronts, and our flagship Kathleen Valley Project is now less than 12 months from first product
Lithium Carbonate 99%Min China Spot Chart - Investing.com AU
10 Yr Chart the Lith' price has come off since 2022 see if 257,500 is the bottom here:
LTR chart below: steady vs the market Lith' price
70,000 tons of material DSO stock piled since January to July 2023 at Kathleen & Mt Mann
Share price reaction: $2.72 at open has not moved the "dial" in either direction..
to integrated logistics solutions provider, Qube Holdings Limited (Qube) 5yr Contract movin the dirt.
Is that asx (QUB) Qube Holdings Limited ..I noted No mention of the announcement yet!!
Ordinary 110,200,877 Votes: 110,200,877 Voting Power: 5.01%
The Open Pit Mining Services contract is valued at approximately A$240 million over a three-year contract term. The award of the full contract follows a competitive tender process in late 2022
- Presentation - 2023 Macquarie Australia Conference
Liontown Resources Limited (Liontown or the Company) is pleased to advise that Mr Jon Latto has been appointed as the Company’s Chief Financial Officer (CFO), a role he has been acting in since December 2022.
A Chartered Accountant, Mr Latto also holds a Master of Business Administration and Bachelor of Commerce from the University of Western Australia. Liontown’s Managing Director and CEO, Tony Ottaviano, said
see how this take-over by Albemarle pans out.
GSGI Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, USA
Goldman Sachs Australia Group All care of Level 22, 101 Collins Street, Melbourne Victoria 3000, Australia Goldman Sachs Financial Markets Pty Ltd (“GAUS”) Level 22, 101 Collins Street, Melbourne, Victoria 3000, Australia
Goldman Sachs & Co. LLC ("GSCO") 200 West Street, New York, NY 10282, USA
Goldman Sachs International (“GSI”) Plumtree Court, 25 Shoe Lane, London EC4A 4AU, United Kingdom
Goldman Sachs Group .. takes a stake .. Interesting events here.....
Class of securities Number of securities Persons’ votes Voting power
Fully Paid Ordinary Shares 116,149,873 116,149,873 5.28%
Message from Tony Ottaviano Managing Director and Chief Executive Officer...ESG is the word ..lah..lahh
Much has happened during the past year, with Liontown securing project funding for the development of Kathleen Valley, signing binding offtake agreements with a group of Tier-1 global customers who value our high ESG credentials, announcing a Final Investment Decision, obtaining all key development approvals and commencing construction at site.
The flavour of the month ESG stuff...
More reading 2924-02600635-6A1123208 (markitdigital.com)
LTR- Time line to expected production: Q2 2024 .....Other businesses below: AKE,CXO, PLS, SYA. PLL
The Aussie listed spodumene producers:
LTR - $1.00ps - Time line to expected production: Q2 2024 PowerPoint Presentation (markitdigital.com)
AKE - $10.25ps - Producing Current estimated annual spodumene production for FY22 is anticipated to fall marginally short of guidance by approximately 2-4%, at between 192,000 - 196,000 dmt, due to production delays-
AKE - 2924-02528684-2A1377578 (markitdigital.com)
CXO - $0.93ps - Darwin N.T. Production expected CY2022 - 2924-02533508-6A1096406 (markitdigital.com)
PLS - $2.24 - Producing FY2022 between 373 - 377,000dmt - 2924-02536250-6A1097491 (markitdigital.com)
SYA - $0.155ps - Production commences First half 2023 - 2924-02536118-6A1097426 (markitdigital.com)
PLL $0.52ps - Various projects - Construction Clean Energy in the USA (markitdigital.com)
Kathleen Valley is a new, globally significant, lithium development project located 680km north-east of Perth
LTR - Definitive Feasibility Study (DFS) for its 100%-owned Kathleen Valley Project,
some #s to wade through here:
Executive Summary:
Liontown Resources Limited (ASX: LTR; “Liontown” or “Company”) is pleased to announce the completion of the Definitive Feasibility Study (DFS) for its 100%-owned Kathleen Valley Project, with the results confirming the potential to develop a leading second-generation lithium-tantalum mining and processing operation in Western Australia’s Northern Goldfields.
Building on the PFS completed in October 2020, the DFS outlines a Tier-1 global lithium project with exceptionally strong financial and technical merits, combined with a class-leading sustainability and ESG framework that is being fully integrated with the Project’s development, details of which will be released in Q4, 2021.
The DFS delivers exceptional results including a further increase in project NPV8% to $4.2 billion and an Ore Reserve which underpins a ~23-year mine life at a planned initial processing rate of 2.5Mtpa, ramping up to 4Mtpa in Year 6 of operations.
This will see Kathleen Valley become one of the largest new lithium producers globally, with annual production of SC6.0 commencing at ~500ktpa and ramping up to ~700ktpa at globally competitive cash operating costs of US$319/t SC6.0 (Years 1-10, excluding Royalties).
The DFS is based on a long-term weighted average price assumption for SC6.0 of US$1,392/tonne and incorporates realistic assumptions for capital and operating costs that take into account the current extremely competitive environment in the WA resource sector as well as cost escalation in materials, services and salaries.
The DFS clearly demonstrates the scale, grade, product quality and Tier-1 location of the Kathleen Valley Project (close to modern infrastructure), positioning it to advance rapidly to a Final Investment Decision (FID), targeted for Q2, 2022.
Building on the extensive work previously completed, metallurgical test work carried out in 2021 has confirmed the ability to produce a +6% Li2O spodumene concentrate with an estimated average recovery of 81% plus a ~12% Ta2O5 concentrate with an average estimated site recovery of 42%.
The tantalum concentrate will be further upgraded off-site to 30% Ta2O5 prior to shipment.
Disc: RL & SM.