Liontown Resources Achieves Milestone with First Spodumene Shipment
LTR (LTR) Share Update September 2024 Sunday 29th
Liontown Resources Ships First Spodumene Concentrate from Kathleen Valley
Liontown Resources Limited (ASX: LTR) has announced a significant milestone with the successful dispatch of its first shipment of spodumene concentrate from the Kathleen Valley Lithium Project.
Instant Summary:
- First shipment of 11,855 wet metric tonnes (WMT) of spodumene concentrate.
- Concentrate grade of 5.2% Li2O.
- Shipment departed from the Port of Geraldton on 27 September 2024.
- Over 28,000 WMT of concentrate produced to date.
- Commencement of spot sales achieving premium prices.
First Shipment Details
Liontown Resources Limited (Liontown or the Company) has successfully loaded and dispatched its inaugural shipment of spodumene concentrate from its flagship Kathleen Valley operation. The shipment, consisting of 11,855 wet metric tonnes (WMT) of spodumene concentrate with a weighted average grade of 5.2% Li2O, departed the Port of Geraldton on 27 September 2024. This shipment is enroute to an existing offtake customer in China.
The operational performance of both the processing plant and logistics chain has been in line with expectations since the commencement of production this quarter. Concentrate stockpiles continue to build between the site and the port, with over 28,000 WMT of concentrate produced to date, reflecting a positive start to the ramp-up towards steady-state production.
Spot Sales Commence
Liontown has also commenced spot sales of uncontracted spodumene concentrate. The initial spot sale of 10,000 tonnes to a Singapore-based trader achieved a premium price of US$802 per dry metric tonne of SC6, with shipment scheduled for early Q4 CY2024. This sale underscores the Company's commitment to price transparency and the establishment of a reliable price index for lithium.
In addition to spot sales, Liontown will progressively commence fulfilling its strategic offtake agreements with LGES, Tesla, and Ford. The successful shipment and spot sales mark the beginning of revenue generation from the Kathleen Valley operations.
Management's Perspective
Liontown's Managing Director and CEO, Tony Ottaviano, stated, 'The successful shipment of concentrate from Kathleen Valley is a pivotal moment for the Company. Over the past six years, Liontown has focused on developing and constructing a world-class tier-1 lithium operation, and now we announce the beginning of generating revenue and cash flow as we see our plans come to fruition.'
Ottaviano added, 'Within two months of first production at Kathleen Valley, we have not only successfully produced and now shipped concentrate with a weighted average Li2O content of 5.2%, but we have also achieved a sale on the spot market, realizing a premium sales price in the current market conditions. This achievement underscores the strong planning capabilities and operational excellence of our team.'
The successful shipment of spodumene concentrate is a significant milestone for Liontown Resources, marking the beginning of revenue generation from the Kathleen Valley Lithium Project. This development is likely to positively impact the company's stock as it demonstrates operational success and market demand for high-grade lithium products. The commencement of spot sales at premium prices further strengthens Liontown's market position and revenue potential.
Investor Reaction:
Analysts are expected to react positively to this announcement, as it marks a crucial step in Liontown's growth and revenue generation. The successful shipment and premium spot sales price indicate strong market demand and operational efficiency, which are likely to boost investor confidence in the company's future prospects.
Conclusion:
Investors should closely monitor Liontown Resources as the company continues its ramp-up towards steady-state production and fulfills its strategic offtake agreements. The successful shipment and commencement of spot sales highlight Liontown's operational capabilities and market potential, making it a promising investment opportunity in the lithium sector.