Liontown Resources Limited
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Liontown Resources Moves Forward with Direct Shipment Opportunity
Liontown Resources Limited (ASX:LTR) has announced that its board has approved moving forward with the delivery of Direct Shipping Ore (DSO) product at the Kathleen Valley Lithium Project. The DSO project has been sanctioned into execution, with equipment secured and 70,000 tonnes of DSO material already stockpiled to the end of July.
The material was liberated through mine plan optimisation, which was not previously expected to be processed. Liontown will now target early revenue with the initial sale of 250,000 to 300,000 tonnes of >1% grade DSO prior to first concentrate production, with the first shipment targeted by the end of the calendar year 2023.
The initial DSO material sale is expected to help secure fast revenue for the company, and the economics of the project are compelling, with a substantial portion of mining costs already sunk as development capital.
Liontown Resources has executed a contract with Axis Mineral Services for the crushing, screening and sorting of the DSO material at Kathleen Valley, to commence in Q4 2023. In addition, the DSO crushing and sorting program will provide crucial real technical data to assist in the design of a potential large-scale ore sorting circuit as part of the planned 4Mtpa circuit expansion.
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Liontown sees robust demand for lithium from its customers, including automakers, battery producers, cathode suppliers, and refiners, and aims to take full advantage of the market demand for lithium DSO product ahead of first production of spodumene concentrate from Kathleen Valley.
Liontown’s Managing Director and CEO, Tony Ottaviano, stated that the move illustrates the depth of the company’s team and its commitment to realizing the full potential of Kathleen Valley. The production of DSO would not only provide early revenue potential but would also derisk the project by testing the ore sorting and logistics solution on a smaller scale before mid-2024's first concentrate production.
Investors are reportedly welcoming this move, which marks significant progress for the company and sets the stage for further solid growth.
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