Gina Rinehart registers new future metals company as Liontown...

Gina Rinehart registers new future metals company as Liontown resumes trading (copyright link)

“The moment we announced that Albemarle had decided not to proceed and withdraw, the phone started ringing again from customers, from joint venture partners around our downstream strategy,” says Liontown chief Tony Ottaviano.“That is an indication that, whilst the current market has come off a bit, the medium to long term is still strong.”

But Ottaviano urged investors not to be discouraged. “Keep the faith, because whilst you might have the short-term price correction, the medium- to long-term fundamentals are still very, very solid,” he told AFR Weekend.“If you look at what supply needs to come on in the next three years [to keep pace with rising demand for lithium], there are 42 projects that need to come on. More than 50 per cent of those are Chinese-owned, and I know how tough it is bringing on capacity.

”Plenty of faith was shown in Liontown as the week dragged on; lenders and shareholders agreed to pump $1.1 billion of fresh cash into the company on Thursday to ensure it had enough money to complete construction of Kathleen Valley.

The $1.80 issue price for the new Liontown shares is 40 per cent below the $3 per share that Albemarle was willing to pay before Rinehart complicated the process by building a potential blocking stake equivalent to 19.9 per cent of the company.But it was still 17 per cent higher than Liontown’s share price on March 27; the last time the market traded without knowing Albemarle’s interest.