Liontown Resources limited (ASX:LTR) is an exploration and development company focused on its kathleen valley lithium project, in Western Australia, aiming to produce high grade hard rock lithium by mid 2024. Whilst it is not yet in production, Kathleen valley is a globally significant Tier 1 lithium mine, and is forecast to produce 500k tonnes a year of lithium concentrate (spodumene).

Investment Prospects

Liontown Resources ltd is well financed, and has a comfortable net cash position. If the Kathleen Valley project achieves its productions milestones, than it should be in a comfortable position to explore downstream expansion, with higher margins and new supply chains. It is set to take advantage of the burgeoning battery metals market, with energy storage industries and electric vehicle business growing rapidly.

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Possible Albemarle Corporation (NYSE: ALB) Takeover

Importantly, Liontown has had a takeover offer at $3.00 a share from American chemicals giant, Albemarle, totalling $6.6 billion dollars. This comes after Albemarle made a failed offer in 2022 at $2.50 a share, which Liontown resources rejected.

Liontown Resources Operations - Western Australia

Out of its two projects, Its main operation is the aforementioned Kathleen valley project, in Western Australia, which has a mineral resource estimate of 156Mt of 1.4% Li2O, or lithium ore, including a tantalum byproduct of 120ppm Ta2O5. Tantalum being used in electronics and optics manufacturing. The forecast mine life is for 20 years, and has already made binding offtake agreements for approx. 90% of its original production, with companies such as South Korean LG Energy Solutions, Tesla and Ford.

Its other possible project, the Buldania Lithium project in Western Australia, is also under exploration, with a smaller indicated and inferred mineral resource of 14.9Mt of 1.0% Li2O.

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