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77.0¢ liontown resources limited

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Charterrierist

6,018 Posts.

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18/01/24

02:25

Post #: 71933674
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Originally posted by pastperformer ↑

LTR finds itself in a very difficult spot right now. When you think about it you would prefer to either have been in production and have a large cash balance (PLS, IGO) or be a well funded explorer who doesn't actually need to produce anything yet. LTR's timing could not be any worse, if they were to start producing lithium in this market, they would be losing money on every tonne produced. Given they may be lucky to have $100mil left when in production later this year, they are going to find themselves needing to make some tough decisions.

1. Mothball before they even get started/stockpile
2. Raise equity to cover the loans until the market improves

Given the last equity raise they only managed to raise $13.8mil from retail, you can imagine how ugly things could get if they are forced to cover debt with equity.

If the lithium price doesn't rebound in the next 6 to 12 months LTR could be a sitting duck for Gina given ALB are now not in the market for LTR. There is a very real risk that LTR finds itself moving towards bankruptcy very quickly and needing to put itself up for sale to avoid bankruptcy as early as next year.

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If LTR can’t survive at current prices, Lord save the rest of the lithium industry.

LTR Price at posting: $1.36 Sentiment: Hold Disclosure: Held
24 Upvote

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(20min delay)
Last 77.0¢		Change -0.025(3.14%)		Mkt cap ! $1.897B

Open	High	Low	Value	Volume
79.5¢	79.5¢	77.0¢	$5.842M	7.502M

Buyers (Bids)

No.	Vol.	Price($)
1	48269	77.0¢

Sellers (Offers)

Price($)	Vol.	No.
77.5¢	990	1

View Market Depth

No.	Vol.	Price($)
1	48269	0.770
21	486341	0.765
37	366800	0.760
19	198383	0.755
80	536374	0.750

Price($)	Vol.	No.
0.775	990	1
0.780	104000	4
0.785	223131	10
0.790	285582	5
0.795	316683	9

Last trade - 16.10pm 28/08/2024 (20 minute delay)

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