IIR’S COMMENTS
- Although recent times have seen difficulties in the lithium industry due largely to supply/demand imbalances in what is largely an immature industry (highlighted by curtailing of production by a number of the Australian spodumene producers), we would expect that these issues to wash out over the coming few years, and prices to recover largely driven by the expected strong interest in demand for electric vehicles.
- As such, Liontown is ideally placed with Kathleen Valley, with recent work highlighting the quality of what we consider to be world class deposit, which should be able to support a long term operation.
- Although of lower grade and tonnage, Buldania is also of a tenor similar to other development projects globally, and thus is itself a valuable asset with room to grow.
- A key strength of Liontown is the quality of the board and management; this is also reflected in the support that they have for the Company, as demonstrated in their take up in the recent placement, and ~20% holding in the Company – the placement also leaves Liontown well cashed up to complete the Kathleen Valley DFS.
