LTR’s 2QFY25 result was strong with spodumene production and sales from Kathleen Valley materially ahead of our expectations. The strong volume result enabled LTR to deliver a strong beat on AISC and generate positive operating cash flow for the quarter, which was significantly ahead of our expectations. LTR’s strong ramp up at Kathleen Valley and rising spodumene prices has removed the near-term funding concerns, with our forecasts implying LTR’s cash balance remains above A$100m during 2025 ahead of an expected recovery in spodumene prices. We have upgraded our near-term earnings outlook, narrowing our forecast loss for FY25 and lifting FY26 earnings by 46%. The improved outlook drives a 9% lift in our price target to A$1.20 and we reiterate our BUY rating on LTR.
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