Australian Stocks: Liontown (LTR) Shares Soar on Debt Financing for Key Project
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Australian Stocks: Liontown (LTR) Shares Soar on Debt Financing for Key Project

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Australian lithium miner Liontown Resources secured a debt facility of AU$550 million for the expansion of its Kathleen Valley lithium project.

In top news on Australian stocks, shares of Liontown Resources Limited (AU:LTR) soared after the company secured AU$550 million in debt financing for the expansion of its Kathleen Valley lithium project in Western Australia. The company’s Kathleen Valley project is a standout asset in its portfolio, boasting one of the largest and highest-grade hard rock lithium deposits globally. LTR shares surged nearly 8% at the time of writing.

Liontown Resources is a mineral exploration and development company with a primary focus on lithium mining.

Details About the Funding

The secured funds will ensure a seamless start to production at the Kathleen Valley lithium plant and help boost output to the base case of 3 million tonnes per annum. Additionally, Liontown intends to utilize the proceeds from the debt facility to refinance the existing debt from a Ford (NYSE:F) unit and enhance its working capital and liquidity.

The company’s CEO and managing director, Tony Ottaviano, commented that the funding serves as robust backing for this project and also provides financial stability. He added that the project is on track to start production by the middle of this year.

Liontown is set to release its half-yearly results for FY24 on March 15.

Is Liontown a Good Stock to Buy?

Over the last month, Liontown stock has witnessed a substantial 38% surge, largely attributed to takeover speculations involving Rinehart’s Hancock Prospecting.

Meanwhile, analysts have a cautious approach and have rated the stock as a Hold. According to TipRanks, LTR stock has received three Buy, three Hold, and three Sell recommendations in the past three months. The projected target for the Liontown share price is AU$1.27, indicating a decrease of 11% from its current level.



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