Shares of Liontown Resources Limited (AU:LTR) soared after it announced the first shipment of spodumene concentrate from the Kathleen Valley lithium project in Western Australia. The Kathleen Valley project is a flagship asset in the company’s portfolio, featuring one of the world’s largest and highest-grade hard rock lithium deposits. LTR shares gained 3.5% at the time of writing.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Liontown Resources is a mineral exploration and development company primarily focusing on lithium mining.
Liontown Achieves Major Milestone
Liontown achieved a significant milestone with the first shipment from its Kathleen Valley lithium project, along with the start of spot sales. The first shipment included 11,855 WMT (wet metric tonnes) of spodumene concentrate to an existing customer. Additionally, the spot sales secured a premium price of $802 per DMT (dry metric tonne), exceeding typical spot prices. The shipment is set for delivery in the fourth quarter of 2024.
The company considers this a crucial step in its journey to becoming a lithium producer, marking the start of revenue generation from its Kathleen Valley operations.
Liontown Releases FY24 Results
Last Friday, Liontown released its annual results for FY24 with a net loss after tax of AU$64.9 million. This represents an increase of AU$42.7 million compared to the previous fiscal year, mainly attributed to higher administrative and finance costs.
Despite this, the company ended its year with a cash balance of AU$122.9 million.
Is Liontown a Good Stock to Buy?
Earlier this month, UBS analyst Lachlan Shaw downgraded his rating on LTR stock from Hold to Sell. Shaw’s price target predicts a downside of 14%. Meanwhile, Macquarie reiterated its Hold rating on the stock, indicating a similar downside.
Overall, LTR stock has a Hold consensus rating based on two Buys, five Holds, and three Sells assigned in the last three months. At AU$1.10, the average Liontown price target implies 35.25% upside potential. Year-to-date, LTR stock has lost over 50% of its value in trading.
