ASX Today, page-44713

Text via page source:
WA’s newest lithium producer has been forced to cut some 30 jobs from its West Perth headquarters almost immediately after sending off a maiden shipment from its Kathleen Valley mine. As first reported by The Australian, Tony Ottaviano’s Liontown Resources on Tuesday axed about a third of its head office staff, as lithium prices continue to languish in a market many believe is oversupplied as the take-up of electric vehicles lags behind expectations. Liontown’s board is chaired by well-known prospector Tim Goyder. The decision to reduce staff came less than 24 hours after the company farewelled the first cargo of spodumene concentrate to be produced at its mine in the northern Goldfields. The maiden shipment of 11,855 wet metric tonnes departed Geraldton Port earlier this week. Liontown said it had mined more than 28,000wmt at an average lithium grade of 5.2 per cent. It no doubt brought a sigh of relief for the company following a tumultuous two years, as it grappled with a takeover, crashing lithium prices, spooked bank lenders and rising project costs that afflicted many new WA mining operations. About 10 per cent of Liontown’s workforce is tipped to go in the staffing cutback, which comes as the company ramps up new mining operations amid tough lithium market conditions. According to a recent company report, Liontown is running operations with about 230 permanent staff. It’s not clear if that figure accounts for Tuesday’s redundancies. The new miner has been among a cohort calling on the State Government to bring forward royalty relief as they battle with lithium prices lingering at about $US800 a tonne. The outcome of a Kathleen Valley mine plan review as well as guidance on production and costs are expected at the end of October.