Join our daily newsletter At The Bell to receive exclusive market insights
Liontown (ASX:LTR) has confirmed its first spodumene concentrate shipment will leave Kathleen Valley later this month within the same window the company has hit a production milestone of 10,000tn.
The question now remains what price can the company snag for it, and, will it be enough to keep Liontown going through a lithium downturn.
The company’s processing plant continues to be the subject of upgrades, now supporting a stockpile build where the average concentrate grade is 5.2% lithium oxide. This lines up with LTR’s expectations, it reported.
A storage facility, road transport logistics and a port shed are now all in play for Liontown in advance of its first shipment before the start of October.
Of course, the fact is that lithium prices are unlikely to hit their 2022 highs again any time soon. Shareholders in Liontown might not get the same uplift that Pilbara Minerals’ saw when it began to export spodumene in its hotly anticipated BWX auctions not that long ago.
All in all, the lithium price boom in the early 2020’s was never really about EV demand – it was largely just another COVID-borne supply chain shortage story. A tough reality, but a sound one.
“The successful mobilisation of our logistics chain and the operational readiness of our site facilities underscores our strong commitment to delivering on our commitments,” LTR CEO Tony Ottaviano said.
“As we eagerly anticipate our first shipment, scheduled for September, this progress positions us on the cusp of revenue generation, reinforcing our dedication to enhancing shareholder value.”
Liontown’s resilience through the last two years could be the bigger story.
LTR last traded at 65cps.
