Australia's Liontown long way from Albemarle offer in 2024 amid lithium price crunch

Liontown

27/12/2024 24:23

** Shares of Australia's Liontown Resources  LTR.AX  set to lose over 65% in 2024 
    ** A gradually shrinking underlying lithium price and a drop in cash reserves have dragged
LTR's stock price to A$0.56
    ** Shares currently trading at an over 80% discount to Albemarle Corp  ALB.N , a once LTR
suitor who had offered A$3 apiece
    ** Global lithium markets are reeling from rapid supply growth, which has surpassed demand
for the battery metal at a time when the sales growth of electric vehicles has slowed
    ** LTR, which owns the Kathleen Valley lithium project, slashed its production plans at the
mine in November in a bid to deal with a prolonged drag in the prices of the metal used for EV
batteries
    ** Analysts at Citi, in November, lowered their PT to A$0.75 from A$0.85 and moved to "sell"
from "neutral"
    ** Macquarie analysts say LTR's balance sheet could remain under pressure with additional
capital expenditure flagged in the update and lithium prices remaining weak
    ** LTR up 1.8% on Friday

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Liontown    https://tmsnrt.rs/40bLmek
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 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com))