Lithium Related Media Articles, page-460

Nice mention on www.resourcesrisingstars.com.au this morning (summary below) or LINK: https://bit.ly/2GilW5E

Liontown:

Those same forces could well be a factor in the stellar run of Tim Goyder’s 18 per cent-owned Liontown (LTR).

Mentioned here in January when it was a 2.4c stock, Liontown has swum against the tide in the lithium space to trade yesterday at 14c for a market cap of $213m.

It has obviously made a clear break from the lithium wannabes that are struggling for market attention.

The reasons for that are simple enough.

Since January, Liontown has confirmed its Kathleen Valley project alongside the Goldfields Highway near the well-serviced nickel and gold mining hub of Leinster in WA as the lead candidate in WA’s second wave of lithium mines.

Above average grades, access to infrastructure and the recent addition of scale to the project with an updated resource estimate of 75Mt, also means Kathleen Valley becomes a project of interest to all of the players along the battery supply chain.

Those are all points likely to be raised on an investor roadshow in the Eastern States next week led by CEO David Richards, a seasoned geologist who has parlayed his success as a gold explorer over the years into success in lithium.

The roadshow is being squired by Bridge Street Capital Partners, the company’s corporate advisors. Bridge’s veteran analyst and former fund manager Chris Baker has just penned a note on Liontown in which the valuation was increased from 11c to 22c.

While it was in the wake of the massive resource upgrade at Kathleen Valley, Baker said the increase was based on changes to financing assumptions. He also noted that Wesfarmers’ bid for Kidman was supportive of the 22c valuation.

“Kathleen Valley’s resource status in the Yilgarn province has climbed rapidly. It now matches that of Mineral Resources’ (MIN) Mt Marion deposit and is substantially larger and higher grade than Alliance Minerals’ (A40) Bald Hill and Galaxy’s (GXY) Mt Caitlin. Kathleen Valley may already offer a plus-20 year mine life,” Baker said.

“Liontown has not entered into any product off-take agreements with end-users, a feature which will undoubtedly lead to many financing options and enhance its corporate appeal. We can see ongoing consolidation of the lithium sector in WA. Liontown is now a prime target.”