...what good is an offtake agreement with no certainty of timeframe of delivery i.e in other words, LTR offtake agreement is seemingly flexible with no exact timeframe for delivery.
...read carefully, they used the word 'progressively' and as for Ford offtake, on or after 1 July 2025, that is more than 6 months away, and in the meantime they are burning >$50mil a quarter, with cash after LG drawdown down to $263mil.
The Company’s inaugural shipment of spodumene concentrate was completed during the quarter, comprising 10,831 dmt (or 11,855 wmt) of spodumene concentrate grading 5.33% Li2O. The shipment departed the Port of Geraldton on 27 September 2024 to an existing offtake customer.
Liontown has consistently emphasised the importance of a transparent, auditable, and liquid price index for establishing a sustainable lithium industry. In support of this goal, the Company announced its first spot sale of 10,000 tonnes of spodumene concentrate to a Singapore-based trader, achieving a reference price of US$802 per dmt SC6, representing a premium to the spot price at the time of US$750 per dmt. 6
As Kathleen Valley ramps up to full commercial production, the Company’s strategic offtake agreements will progressively be brought into effect. Additionally, during the quarter, the Company agreed with Ford to commence supply under their Offtake Agreement on or after 1 July 2025, as well as to amend the pricing reference to lithium carbonate rather than lithium hydroxide. This provides Liontown with a more balanced exposure to both lithium hydroxide and carbonate prices. Interest under the Ford Debt Facility is capitalised until supply commences under the Offtake Agreement with Ford
