- Liontown Resources will start shipping DSO crushed lithium ore product ahead of concentrate production in mid-2024
- The DSO operation will allow the company to verify and refine logistical considerations ahead of the overhead spodumene export goal
- The company has some 70,000 tonnes already in stockpile with commercial discussions nearing completion
- The company expects the operation to be an early revenue maker
- Liontown shares last traded at $2.72
Liontown Resources (LTR) has confirmed it will start selling direct shipping ore (DSO) lithium product to unlock early-stage revenue ahead of first concentrate production in 2024.
The company has some 70,000 tonnes of DSO product stockpiled of which samples have already been sent to potential customers.
Commercial discussions are “well advanced” and Liontown expects its first shipment to hit the waves late year.
The 70,000 tonnes in stockpile originate as mining commenced at the company’s Kathleens Corner and Mt Mann open pits at the start of this year.
Liontown is targeting sales of up to 300,000 tonnes DSO before concentrate production kicks off.
Liontown is seeking to produce spodumene concentrate from the Kathleen Valley pit with shipments commencing in mid-2024.
The company reported endearing demand from auto-makers, battery producers, cathode suppliers and lithium refiners continues to permeate the market.
“Progressing with the production of DSO not only provides early revenue potential, but also enables us to de- risk the project by field testing our ore sorting and logistics solutions on a smaller scale ahead of first concentrate production mid-2024,” Liontown CEO Tony Ottaviano said.
Axis Mineral Services have been contracted to carry out the crushing and sorting of DSO materials while Qube is on-board for haulage.
The company expects the DSO operation to allow it to refine logistics considerations ahead of exporting spodumene concentrate in mid-2024.
In late March, the company shot down a $5.5 billion takeover offer from US-listed Albemarle.
Liontown Resources shares last traded at $2.72.