Liontown Resources Limited
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Why Liontown Resources is making progress on the Kathleen Valley Lithium Project?
Liontown Resources Limited (ASX: LTR) has announced that its Kathleen Valley Lithium Project is now more than 50 percent complete, with a clear path to first production by mid-2024. During the September quarter, Liontown awarded the final major mining and construction contracts for the project, bringing the committed capital costs to around 90 percent and reducing the risk associated with reaching first production.
What are the highlights of the quarterly activities report?
The quarterly activities report for Liontown Resources provides several key highlights:
No lost-time injuries were reported during the period.
Kathleen Valley Lithium Project is more than 50 percent complete.
The updated estimate of the project's capital cost, including pre-production mining, is A$951 million.
All major mining and construction contracts have been awarded, and approximately 90 percent of the project's capital costs have been committed, minimizing the risks associated with reaching first production.
The average cash cost (C1) is expected to be A$651 per SC6 dry metric tonne over the initial 10 years of production.
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A General Manager Operations has been appointed, and 47 new hires were made during the quarter, in line with the workforce plan.
An underground mining services contract was awarded to Tier 1 contractor Byrnecut.
A structural, mechanical, piping, and electrical & instrumentation contract was awarded to Tier 1 contractor Monadelphous.
Significant progress was made in material movement, steel and plate fabrication, and structural concrete pouring at the process plant.
The hybrid power station, including the solar farm, thermal power station, LNG facilities, and wind turbine, also advanced significantly.
A revised proposal for the acquisition of Liontown was received from Albemarle; however, Albemarle later decided to withdraw due to growing complexities related to the transaction.
The company drew down A$128. 6 million under a finance facility with Ford, with A$52. 7 million remaining undrawn.
The company's cash balance as of 30 September 2023 was A$285. 0 million.
What does Liontown's Managing Director say about the progress?
Liontown's Managing Director, Tony Ottaviano, expressed satisfaction with the progress made during the September quarter. Construction of the Kathleen Valley Lithium Project has passed the halfway mark, and the project remains on schedule with all major mining and construction contracts awarded. More than 90 percent of the capital costs have been committed, ensuring a clear path to first production by mid-2024. Ottaviano also highlighted the importance of operational readiness, including filling operational and corporate roles and establishing systems and processes that prioritize safety. He further mentioned that Liontown has secured a funding package that extends beyond first production, providing a prudent buffer for the commissioning phase.
The progress made on the Kathleen Valley Lithium Project demonstrates Liontown Resources' commitment to developing a world-class mining project and positioning itself as an efficient and safe mining company in the lithium sector.
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