Liontown Resources Reviews Expansion Plans for Kathleen Valley Lithium Project
Liontown Resources recently announced that it has initiated a thorough review of its proposed expansion of the Kathleen Valley lithium project in Western Australia. This decision comes in the wake of a significant downturn in prices for the crucial battery ingredient.
In an effort to preserve cash and mitigate near-term funding requirements, Liontown is considering various measures as part of the review process. These measures may include potential delays to underground development work, resequencing of the mine plan, and implementing further cost-cutting strategies.
The recent sharp decline in spodumene prices has had a substantial impact on short- and medium-term lithium price forecasts, prompting Liontown to reassess its expansion plans.
Despite these developments, Liontown reassures stakeholders that there are no alterations to the current design of the 3-million-metric-ton annual plant capacity. The company remains committed to its timeline, targeting first production in the middle of 2024.
Additionally, Liontown has commenced discussions with lenders regarding a revised debt facility, with a smaller scale being considered. The company has received assurances from lenders within the syndicate that they continue to be highly supportive of the project. By the end of March, Liontown anticipates providing an update on its funding arrangements.
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