The S&P/ASX200 closed slightly higher by just 5.60 points today (9 February 2024) to 7,644.80.
Liontown Resources (ASX:LTR) was a top performing stock in this index, which close up 10.396%. The company’s share price close at $1.115 giving it a market capitalisation of $2.39 billion.
The S&P/ASX200 index has lost 0.71% for the past 5 days but is virtually unchanged over the past year to date.
Liontown just weeks ago confirmed the Kathleen Valley Lithium Project is on-track for first production in the middle of this calendar year and the company remains focused on delivering to that schedule and on budget.
The recent material decline in spodumene prices has triggered significant reductions in short and medium-term lithium price forecasts. As a result, the company has started a review of the planned expansion and associated ramp-up of Kathleen Valley to preserve capital and reduce the near-term funding requirements of the project.
The review includes examining options to defer the timing of the previously announced 4 million tonne per annum underground development work, sequencing adjustments to the mine plan, and scope for additional cost optimisations.
There is no change to the 3Mtpa plant capacity design which the company is currently constructing.
Liontown had about $515 million cash at bank at 31 December 2023, having now fully drawn a $300 million project funding package. This is expected to fund construction activities required for first production in the middle of 2024.
The company expects to be able to provide a funding update by the end of the March 2024 quarter.
Write to Adam Orlando at Mining.com.au
Images: Liontown
