- Liontown Resources hit an all-time high on the news global lithium chemicals producer Albemarle was interested in acquiring the company.
- Albemarle backed out of the deal but maintained a favorable review of Liontown’s Kathleen Valley Lithium project.
- The company expects lithium production to commence at Kathleen Valley in mid-2024.
Over five years the share price of lithium exploration and development company Liontown Resources is up 4,121%.
The company hit an all-time high in September of 2023 on the news of a $3.00 per share takeover offer from battery chemical giant, Albemarle. When Albemarle later abandoned its proposal the stock price crashed and is now down 39% year over year.
Liontown remains on track to begin lithium production at Kathleen Valley in mid-calendar year 2024, but in a 22 January Project and Funding Update investors got another disappointment.
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Liontown had planned to begin expansion plans for the project to ramp-up initial production. Citing the decline of the price of lithium and the multiple soft forecasts for the near-term price, the company announced a review of the expansion plan and its potential funding sources. Liontown did not downgrade its initial production estimates.
An analyst at Morgans has a HOLD recommendation on Liontown shares, advising investors to “reassess based on evolving market conditions” in light of the decline of lithium prices in 2023 and Liontown’s review of the planned expansion of its flagship Kathleen Valley lithium project.
Marketscreener.com has a consensus OUTPERFORM rating on LTR shares, with four of the twelve analysts reporting at BUY, six at HOLD, one at UNDERPERFORM, and one at SELL.
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