Liontown Resources has announced that the inaugural shipment of spodumene concentrate from its Kathleen Valley project has departed the Port of Geraldton and is en route to an existing customer in China.
Liontown also announced that spot sales of uncontracted spodumene concentrate have commenced, achieving a premium price to spot for shipment in early Q4 CY2024.
Shipment comprised of 11,855 wet metric tonnes (WMT) of spodumene concentrate with a weighted average concentrate grade of 5.2 per cent Li20. The first shipment is comprised of concentrate with a grade that complies with Liontown’s product specifications and contractual commitments.
This first shipment is a pivotal milestone for the company as a lithium producer and marks the beginning of generating revenue from the Kathleen Valley operations.
The company continues to progress ramp-up milestones at Kathleen Valley, building concentrate stockpiles between the site and the port, with more than 28,000WMT of concentrate produced to date.
The initial spot sale of 10,000t of spodumene concentrate to a Singapore-based trader achieved a reference price, at a premium to spot, of US$802/dry metric tonne of SC6, with shipment scheduled for early Q4 CY2024, which the company reported to price reporting agencies (PRA) as part of its commitment to price transparency.
Liontown said it will continue to execute its spot sale strategy going forward to ensure it maximises value for its shareholders by creating a long-term reliable price index that is truly reflective of global supply and demand dynamics for lithium.
In addition to the spot and ramp-up tonnes sales, the company will progressively commence fulfilling its strategic offtake agreements with LGES, Tesla and Ford.
Liontown’s Managing Director and CEO, Tony Ottaviano, said the successful shipment of concentrate from Kathleen Valley is a pivotal moment for the company.
“Over the past six years, Liontown has focused on developing and constructing a world-class tier-1 lithium operation. Now, we announce the beginning of generating revenue and cash flow as we see our plans come to fruition.
“Within two months of first production at Kathleen Valley, we have not only successfully produced and now shipped concentrate, with a weighted average Li20 content of 5.2 per cent, but we have also achieved a sale on the spot market, realising a premium sales price in the current market conditions, and demonstrating the consistent demand for high-grade battery products.
“This achievement underscores the strong planning capabilities and operational excellence of our team, as well as the support from our tier-1 logistics partner Qube.
“As we look ahead, we continue our ramp-up progress towards steady state production and remain committed to enhancing shareholder value with confidence in the long-term success of the Kathleen Valley lithium operations.”
Featured image: Aerial-motion/shutterstock.com
