Jarden downgrades Australia's Liontown Resources on valuation concerns

Liontown

08/08/2025 02:23

** Jarden cuts rating of Liontown Resources LTR.AX to "Underweight" from "Neutral" but raises PT to A$0.50 from A$0.48

** LTR is currently on trading halt pending an announcement on capital raise

** Jarden says Lithium prices need to rise by ~50% for LTR to reach cash breakeven, before debt principal repayment

** Decreases FY25 EBITDA outlook by 22% to A$80.7 mln

** Expects slower underground growth but sees upside in plant recovery rates - Jarden

** The battery minerals producer on Thursday announced A$266 mln($173.57 mln) fully-underwritten placement at an issue price of A$0.73 per share

** Australian government will invest A$50 mln in co to support operations and transition to underground mining at Kathleen Valley project

** As of last close, YTD stock up 61%

($1 = 1.5326 Australian dollars)

 (Reporting by Keshav Singh Chundawat in Bengaluru)

 ((Keshav.SinghChundawat@thomsonreuters.com;))