Liontown Share Price Down, Positions Itself as the Lithium Play to Watch 

For the third week in a row, Liontown Resources Ltd [ASX:LTR] has posted prolific gains, with a 202% rise over the past year. At time of writing, their share price stands at 99 cents, down slightly by 1%. 

This free report reveals the three tiny mining stocks set to ride the lithium frenzy. Click here to find out who they are. 

‘Substance over hype’

After yesterday’s announcement of a record intercept 90m grading 1.3% of lithium oxide at the Kathleen Valley project, today’s investor presentation was a chance to look realistically at the company’s future prospects — and it’s fair to say the company is optimistic. 

Liontown are set on becoming the Australian miner of the future, starting with the transformation of Kathleen Valley into WA’s newest lithium mine.  

As they point out in their presentation, they are also committed to advancing their second discovery, the Buldania project in Kalgoorlie, into a maiden resource estimate.  

The preliminary test work at Kathleen Valley has so far confirmed saleable spodumene concentrate, with further feasibility tests still ongoing. The scoping study point towards a ‘robust’ NPV analysis of $762 million going forward. 

The priority for Liontown now will be to refine metallurgic production at Kathleen before approaching other ‘potential strategic partners 

On the other side of the state, management has given high priority to the Anna prospect at Buldania, which contains multiple undrilled spodumene pegmatites. According to Liontown, there hasn’t been any exploration of this area before now.  

Drill testing is scheduled for Q2 2019.  

Is it still too early to celebrate?

Given the continued good news coming out of the company, it’s not surprising to see jumps in the share price in rapid succession. 

The latest news brings the company ever closer to its target of 31 million tonnes of 1.5% lithium — as we’ve previously detailed 

The updated mineral resource estimate (MRE) study will likely be realised as early as next month.  


Ryan Clarkson-Ledward,
For Money Morning 

PS: If this has piqued your interest, check out our free report: ‘How Lithium Could Potentially Be the Biggest Resource Opportunity in Decades’. Click here to learn more. 

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia