...the ASX200 Turkey of the Year is Liontown Resources (LTR), no coincidence the stock that I warned people about in both LTR forum and this thread since March this year.
...it is also the most precarious amongst all ASX lithium producers due to its significant debt levels. Its survival is only as good as support from LG (I doubt both Tesla and Ford care too much) and one can imagine that with the coming Trump's tariff and to make a more notable presence in USA, that it makes more sense for LG to tie up with a local US lithium supplier. S&P/ASX 200 | Worst performers, year to date (%)
{caption}Table with 2 columns and 11 rows.{/caption}
1
2
Liontown Resources
−66
3
Star Entertainment
−61
4
Audinate
−55
5
Coronado Global Resources
−54
6
Lifestyle Communities
−53
7
Mineral Resources
−50
8
Domino’s Pizza
−49
9
Kelsian
−48
10
Neuren Pharmaceuticals
−47
11
Spark New Zealand
−46
12
S&P/ASX 200 Index
10
Source: Bloomberg
Liontown Resources
It’s only got worse for investors in lithium producer Liontown Resources.
Dwindling cash reserves and a rapid collapse in the price of lithium this year sent Lionaires (as Liontown’s fanatical West Australian investors were once known) scrambling. Down more than 60 per cent, Liontown is trading a long way from the $3 a share suitor Albemarle was willing to part with before changing its mind.
In November, the company slashed production plans at its Kathleen Valley mine in an attempt to survive a prolonged downturn in the commodity price.
Analysts have also rebelled against the stock. Citi downgraded the shares to “sell”, concluding higher capital expenditure and tight margins were adding to the company’s balance sheet concerns.
Likewise, UBS analyst Levi Spry – who also rates the shares a “sell” – is unconvinced by the case for a 2025 recovery.
“Despite a cooling in global demand prospects, we now expect [lithium] supply growth to undershoot demand [in 2025],” the broker said. “[Lithium] equities are still trading slightly expensive with growth still to be reconsidered and priced by the market.” He has a “sell” on lithium peers Pilbara Minerals and Mineral Resources too.
