ASX Today, page-42287

The 70% recovery rate is quite normal during the ramp up
when there are a lot of fine tuning will be done. No one was expecting a 78% recovery rate. In fact 70% recovery is very good for the ramp up.

As an example PLS's recovery rate was 55% during the ramp up for long time against it was 75% on its PFS.

It will be even normal that KV plant must be shut down for a week in first three months of ramp up period to make everything fine tuned. That will not repeat again though.

We also have huge amount of mined product waiting for processing.

The table below was given by LTR recently (as of June 30 2024). As you know mining is the largest portion of cost per tonne which was shown as AU$449/t on LTR's cost documents (see below).

We have 216kt clean ore at the ROM pad which is being now processed in the plant. That is a huge amount.

We also have 251kt are sorting product (OSP) which includes previously mined for DSO (Direct Shipping Ore) . This ore will be sorted and crushed in the OSP plant and will be feed to the process plant. That is a huge amount as well.

We also have 11kt clean and sorted product which is I think being fed to the process plant.

More importantly we have 58kt crushed and stockpiled clean ore in plant. That sits between the primary crusher and fine ore bin. That ore goes to the plant for first production IMO.



We have already spent largest portion of cost per tonne
Therefore whatever LTR produces and sells now will be largely in profit.
That will contribute to our cash stockpile.

As you know mining is the largest portion of cost per tonne. LTR document for cost breakdown shows the cost of mining is AU$449 in the total cost of AU$651 per tonne.



I don't know if shorters are aware of all these.

It was said on The Australian Business Review- Dataroom;

"Liontown Resources boss Tony Ottaviano has hit out at short sellers targeting his stock with a view it will raise equity, suggesting they were perpetuating the narrative that it needs to tap the market."

"Mr Ottaviano said a raise where Liontown’s share price was currently trading would be “very dilutive” and ruled the move out, saying the group had at least $450m of funding in the bank"

"We have sized that cash flow to see us through to ramp up and into positive cashflow,” he said at Kalgoorlie’s Diggers and Dealers conference on Tuesday".

It is clear that that there will be no equity raising anytime soon, or not at all.

"The market is saying you need equity funding, so what’s the play? You short the stock to get a lower price and then you unwind.” Mr Ottaviano said those doubtful could track Liontown through evidence it was on track through quarterly updates".

I can see LTR management is also very frustrated with shorting of LTR even at this level of $2b mcap.

"He said the issue of shorting, where shares are borrowed with the aim of buying them back at a lower price then pocketing the difference, was sensitive, and he understood the role short sellers played in uncovering companies that were not disclosing or mining the market.

"But at times it does feel it is being weaponised,”

OK.. LTR management is also asking the question which we are asking here;

Who is using the shorting as a weapon?

Is it the ordinary Shorters or "Someone" else?

Or are they working together?

No shorter would short LTR at this level of sp. The shorts are 11.58% and 280m shares as of Aug.1st.

It shows me this is for strategic decision shorting but for not for ordinary short profit making". That's what Tony O is saying too.

Is there "Someone" who wants to see LTR at a lower price to buy it out for nothing?

Of course it is "Someone" doing that IMO.

Whoever it is, that is completely a stupid act IMO.

We are good.
Let the machines running...
And money flowing...