Liontown Resource Outlook
Technical Analysis
Short-term: Watch the $1.00 support level. If it holds, there might be a short-term bounce, especially considering the increased volume at this level.
Medium-term: Monitor the $1.25 support and $1.75 resistance levels. Both levels show significant volume activity, indicating strong buying and selling interest.
Long-term: Significant resistance is around $2.75. A break above this level, confirmed by high volume, could indicate a potential for higher highs.
Macro Analysis
The latest quarterly report for Liontown Resources, dated March 2024, indicates several updates and progress compared to the previous financial report. Here are the main changes:
1. Project Completion Progress:
The Kathleen Valley Lithium Project is now more than 85% complete on an earned value basis, with the process plant approximately 90% complete.
This is a significant advancement compared to earlier stages.
2. Workforce and Construction Hours:
The site-based workforce now exceeds 900 people, and approximately three million work hours have been recorded since construction commenced at Kathleen Valley (61204675-1) .
3. Mining Progress:
Underground mining has achieved significant progress, with approximately 1,535 total development meters recorded for the March quarter
Open pit mining has also advanced well, with 1.1 million bulk cubic meters mined and ore being stockpiled ahead of plant startup
4. Process Plant and Infrastructure:
Commissioning of the dry plant commenced in late March 2024, with the crushing circuit energized ahead of schedule
Wet plant milestones were achieved, with key areas like flotation piping and electrical well-progressed
5. Financial Position and Funding:
Execution of a A$550 million debt package to support the Kathleen Valley project, ensuring sufficient funding through to first production and beyond
The company's cash balance was A$358.1 million as of 31 March 2024
6. Business Readiness and Recruitment:
Business readiness preparations continued to build momentum ahead of first production, with 258 full-time employees directly employed by Liontown at the end of the quarter
7. Environmental, Social, and Governance (ESG) Activities:
Key ESG activities progressed, including the approval of the Kathleen Valley Mining Proposal update and the completion of heritage surveys for infrastructure construction
8. New Contracts and Agreements:
The Kathleen Valley Village Services contract was awarded to Sirrom Corporation for three years
Significant progress was made on the construction of the 95MW Hybrid Power Station, including the installation of solar panels and live testing of LNG gensets
9. Tailings Storage Facility and Water Management:
The Tailings Storage Facility (TSF) cell 1 continues to be filled with raw water to support start-up processing operations
These changes reflect significant advancements in project development, financial structuring, and operational readiness compared to previous reports, positioning Liontown Resources closer to commencing production and generating revenue from the Kathleen Valley Lithium Project.
Short-term: Watch the $1.00 support level. If it holds, there might be a short-term bounce, especially considering the increased volume at this level.
Medium-term: Monitor the $1.25 support and $1.75 resistance levels. Both levels show significant volume activity, indicating strong buying and selling interest.
Long-term: Significant resistance is around $2.75. A break above this level, confirmed by high volume, could indicate a potential for higher highs.
Macro Analysis
The latest quarterly report for Liontown Resources, dated March 2024, indicates several updates and progress compared to the previous financial report. Here are the main changes:
1. Project Completion Progress:
The Kathleen Valley Lithium Project is now more than 85% complete on an earned value basis, with the process plant approximately 90% complete.
This is a significant advancement compared to earlier stages.
2. Workforce and Construction Hours:
The site-based workforce now exceeds 900 people, and approximately three million work hours have been recorded since construction commenced at Kathleen Valley (61204675-1) .
3. Mining Progress:
Underground mining has achieved significant progress, with approximately 1,535 total development meters recorded for the March quarter
Open pit mining has also advanced well, with 1.1 million bulk cubic meters mined and ore being stockpiled ahead of plant startup
4. Process Plant and Infrastructure:
Commissioning of the dry plant commenced in late March 2024, with the crushing circuit energized ahead of schedule
Wet plant milestones were achieved, with key areas like flotation piping and electrical well-progressed
5. Financial Position and Funding:
Execution of a A$550 million debt package to support the Kathleen Valley project, ensuring sufficient funding through to first production and beyond
The company's cash balance was A$358.1 million as of 31 March 2024
6. Business Readiness and Recruitment:
Business readiness preparations continued to build momentum ahead of first production, with 258 full-time employees directly employed by Liontown at the end of the quarter
7. Environmental, Social, and Governance (ESG) Activities:
Key ESG activities progressed, including the approval of the Kathleen Valley Mining Proposal update and the completion of heritage surveys for infrastructure construction
8. New Contracts and Agreements:
The Kathleen Valley Village Services contract was awarded to Sirrom Corporation for three years
Significant progress was made on the construction of the 95MW Hybrid Power Station, including the installation of solar panels and live testing of LNG gensets
9. Tailings Storage Facility and Water Management:
The Tailings Storage Facility (TSF) cell 1 continues to be filled with raw water to support start-up processing operations
These changes reflect significant advancements in project development, financial structuring, and operational readiness compared to previous reports, positioning Liontown Resources closer to commencing production and generating revenue from the Kathleen Valley Lithium Project.
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