Liontown Resources share price jumps after release of quarterly business report

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The Liontown Resources Limited (ASX:LTR) The stock price is up 2.69% midday as the company releases its quarterly business report ending Sept. 30.

Shares of the battery metal exploration company are currently trading at $1.91 each.

Let’s review the highlights of the report.

What Liontown reported?

  • Net cash used in operating activities: $2.53 million
  • Net cash used in investing activities: $26.05 million
  • Net cash used in financing activities: $4.64 million
  • Cash and cash equivalents, end of period: $419.84 million

Liontown has received approval for its mining and working proposal from the Government of Western Australia, allowing the company to begin preparations for the Kathleen Valley lithium project.

Throughout the quarter, Liontown also integrated some key suppliers.

One of Liontown’s most significant developments was to engage Lycopodium with an engineering, procurement and construction management agreement (EPCM contract). The contract, worth $35 million, is for facilities to be used at Kathleen Valley.

Off-grid energy specialist Zenith Energy has also won a contract to build a wind-solar battery storage plant on the site. The report notes that it is expected to be the largest of its kind when completed.

What else happened in FY22?

The company also described other efforts to help Kathleen Valley become operational.

Liontown received a permit to extract water and clear native vegetation for the project buildings. It has also made significant progress in its design and construction, and construction of the camp is well advanced.

“Highly regarded” corporate lawyer Adrienne Parker has been named the new non-executive director.

What did management say?

Liontown General Manager Tony Ottaviano said:

The September quarter was an exciting time for Liontown with a significant increase in activity levels across the business, new faces joining the company as we continue to grow our high caliber team and the site of Kathleen Valley is gearing up for a time of transformation. The importance of a highly experienced team cannot be underestimated as we are acutely aware that we are embarking on a major construction project at a time of global macro-uncertainty, which is expected to continue to affect supply chains, labor markets and the availability of equipment and materials. short term.

Liontown Share Price Overview

Liontown’s share price is up about 15% year-to-date. The company’s shares are beating the S&P/ASX 200 Index (ASX:XJO) by a wide margin with the benchmark currently down 7.85% over the same period.

The company’s market capitalization is approximately $4.2 billion.

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