LTR is in the ramp up phase at Kathleen Valley, with the first shipment to one of its three long-term customers, LG Energy Solutions, recently completed. A total of four spodumene shipments have now been completed, with product remaining below the target 6.0% Li2O grade. As the product grade improves, we expect LTR to commence shipments to its other two core customers, Ford and Tela, to commence. Depressed spot prices continue to weigh on LTR’s share price, however with the ramp up progressing as planned, the stock offers leverage to rising spot prices. We expect an improvement in spodumene prices into 2025 as potential supply disappointments become more apparent. We reiterate our BUY rating but lower our price target 8% to reflect cuts to our near-term lithium price outlook.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.
