Latest news with #LiontownResources
Business Recorder
a day ago
- Business
- Business Recorder
Australia shares dragged by miners, banks; investors await inflation data
Australian shares slid on Tuesday as miners and financial stocks weighed on the benchmark, while investors await the local inflation data due on Wednesday. The S&P/ASX 200 index dropped 0.3% to 8,672.8 points by 0040 GMT. It had closed 0.4% higher on Monday. The domestic quarterly inflation report is likely to provide guidance to investors on whether the Reserve Bank of Australia would tilt towards a rate cut at its meeting next month. The last rate cut was in May, when the central bank lowered it by 25 basis points to 3.85%. On the Sydney bourse, investors tread cautiously with heavyweight financials spearheading a dip in equities. The sub-index fell about 0.7% to record its steepest intraday percentage fall in a week. The country's 'big four' banks were down between 0.8% and 1.1%. Banks boost Aussie shares higher; investors brace for corporate earnings Miners slipped as much as 0.9% to their lowest level since July 21, and were set for their fourth straight session of losses as iron ore prices tumbled. Minerals producer Liontown Resources shed over 1% after reporting a sequential drop in its quarterly revenue. Gold stocks piled on the losses, falling about 1.4% to hit their lowest level since July 9, as bullion prices took a hit following the U.S.-European Union trade accord that lifted the dollar and risk sentiment. Bucking the trend, however, were energy stocks that rose 0.6% as oil prices extended gains, lifted by hopes of improved economic activity after the U.S.-EU deal. Woodside Energy rose 1.3% to hit its highest level since June. Separately, the company said it will take over operatorship of the Bass Strait oil and gas assets from ExxonMobil, unlocking an estimated $60 million in synergies. New Zealand's benchmark S&P/NZX 50 index fell 0.2% to 12,882.22 points.
AU Financial Review
a day ago
- Automotive
- AU Financial Review
Liontown reveals slower lithium growth as Ford shaves supply contract
American car giant Ford has reduced its lithium purchase order from Liontown Resources, as the slowdown in electric vehicle sales in North America adds to pressure on the cash-burning West Australian miner. Liontown's cash balance declined by a further 10 per cent over the past three months as weak lithium prices ensured revenues could not cover the ongoing cost of building an underground mine at Kathleen Valley, about 800 kilometres north-east of Perth.
West Australian
a day ago
- Business
- West Australian
Liontown Resources readies for ‘transition year' in FY26 as it ends year with $156m cash
Liontown Resources expects FY26 will be a 'transition year' as the lithium miner moves underground at Kathleen Valley in the northern Goldfields and awaits a sustained rebound in prices for the key battery material. The Gina Rinehart-backed company on Tuesday reported more than 300,000 tonnes of spodumene concentrate had been produced in the first 11 months of operation near Leinster. Liontown recorded net positive operating cash flow of $23 million in the three months to the end of June and finished the period with $156m in the bank, despite a 9 per cent quarter-on-quarter drop in average realised prices. Revenue for the year came in at $301m. Managing director Tony Ottaviano said it had been a strong finish to the company's first year of operations. 'With lithium prices falling 24 per cent (~$US203/t) during the quarter, our strategy to process stockpiles enabled us to preserve cash and maintain a strong cash balance at year end,' Mr Ottaviano said. 'This has been enabled by the leading design and the performance of our fourth-generation process plant and the team's focus on preserving cash. 'FY26 will be a transition year. Our focus is clear, we need to complete the underground transition, manage costs and cash tightly, and prepare the plant to fully leverage high-grade, low-contamination underground ore in the second half. 'We're confident that by executing our plan in FY26, the company will emerge stronger from this low-price environment'. Liontown said plans to shift mining underground remained on track as it targets production run rates of one million tonnes a year by September and 1.5mtpa by March 2026. It said it continued to see a 'robust' outlook for lithium, underpinned by strong demand for high-quality spodumene concentrate. 'In the first six months of 2025, lithium demand has continued its double-digit growth rates, driven by strong electric vehicle sales and energy stationary storage installations,' it said. 'Global EV sales increased by 28 pe rcent and ESS installations increased by 54 per cent, both compared to the first six months of 2024. 'The current lithium price environment reflects evolving supply-demand dynamics, and we anticipate a return to more normalised conditions as demand continues its robust long-term growth trajectory.' But there could be clearer skies ahead for WA's beaten-down lithium miners. Futures covering lithium-rich spodumene have bounced as much as 29 per cent to $US790/t ($1200/t), still well short of the $US1100/t it was fetching 13 months ago but a considerable improvement on its bottom of $US605/t in the first week of June. Liontown is forecasting FY26 production of between 365,000t and 450,000t — a 24 per cent to 53 per cent increase from last financial year.
News.com.au
6 days ago
- Business
- News.com.au
Is lithium finding its wings again? Here's what three ASX explorers have to say
After prolonged depressed prices, lithium has begun to claw its way back China continues to control the majority of lithium processing and EV manufacturing Stockhead speaks to three explorers in the lithium space to gauge their thoughts Lithium was a market darling in 2022, ushering in a tsunami of newly minted explorers to the ASX – then the wave crashed. Now the beloved battery metal could be starting to swell again, with activity emerging in recent weeks. The price of the battery-metal has spectacularly devalued over the past few years due to oversupply and re-adjusting Western demand for electric vehicles. But now, the Global X Lithium & Battery Tech ETF has climbed more than 20% over the past month, whilst price reporting agency Fastmarkets on Tuesday assessed 6% Li2O – the benchmark for the spodumene concentrate mined by WA producers – at US$760/t. That's a violent increase from the June 23 low of US$610/t, underpinned by rising futures prices in China and improved buying interest from battery makers, as well as the closure of a number of Chinese operations on environmental grounds. In the same period, lithium carbonate has run from US$8050/t to US$8550/t. This change has flowed through to ASX miners. Kathleen Valley lithium mine owner Liontown Resources (ASX:LTR) has regularly been a barometer for speculative interest in the sector. It once ran from 3c to more than $3 at lithium's highs before crashing below 60c at its recent ebb. The Gina Rinehart backed stock has seen its share price climb more than 16% over the past five days to breathe down the neck of $1 once again. A tale of two countries It isn't always easy to glean clear answers from the market (furiously shakes Magic 8 Ball). But some of the most recent data has come out of two closely linked places, Africa's lithium hotspot of Zimbabwe and China. This month, Zimbabwe reported a 30% growth in lithium exports for the first half of this year in spite of a weak spot price. The Minerals Marketing Corporation of Zimbabwe says the country shipped nearly 600,000t of spodumene concentrate between January and June this year, an increase from more than 450,000t during the same period in the year prior. China is the chief buyer of Africa's lithium, a source it has cultivated to garner control over a supply chain previously dominated at the raw material end by Australia and Chile. And it remains top dog in the EV industry by the length of the straight, producing more than 70% of the world's share in 2024 with an even stronger grip on battery production and battery chemical refining. Today, Chinese-owned companies commandeer about one quarter of the globe's lithium mining and two-thirds of battery grade lithium chemical capacity. Low lithium prices have suited the dominant battery players CATL and BYD, who have developed their own mines in China to help flood the market and, allegedly, keep a lid on prices. But the Chinese Government has become increasingly concerned with Neijuan, a phrase popularised by Weibo users to describe the negatives of the "rat race". In mining terms, it means authorities could crack down on sectors where competition is driving industrial losses. Whether that was behind the closure of Zijin subsidiary Zangge Mining's Qinghai operations, a key factor in recent commodity price increases, is a subject of speculation. Is this month's increase in the lithium price nothing but a dead cat bounce, or are we witnessing a return to glory days? While many explorers pivoted their attention away from the battery metal, Stockhead spoke to three companies who believe in the long term opportunity. What are you seeing on the ground floor as a lithium explorer in terms of market sentiment? Chariot Corporation (ASX:CC9) managing director Shanthar Pathmanathan: "I believe it's the beginning of a massive bull run in lithium, but it's important to be cost conscious. Africa has increased production from artisanal and small scale mines by 500% in the last three years whilst lithium prices crashed by 90%. African supply is now about 20% of world supply. "Moreover, the Chinese buyers seem to prefer African supply. The inside lane in lithium for the next year or so while prices are still recovering will likely continue to be the Africa-to-China supply route. Getting in on the inside lane means making money whilst others are not and potentially taking advantage of opportunities elsewhere. "I still see lithium as the great disruptor of the massive, multi-trillion dollar oil market and this recent crisis has given us the opportunity we needed to get positioned." Pursuit Minerals (ASX:PUR) managing director and CEO Aaron Revelle: "We're seeing a definitive shift in sentiment on the ground. The rebound in lithium carbonate pricing has re-ignited some soft investor interest, particularly in high-quality brine assets following on from the Rio Tinto acquisition of Arcadium and many watching how the new CEO of Rio will advance those assets. "There's more inbound interest, especially those looking to secure supply outside of China. Juniors with pilot scale production, strong grades, and a clear pathway to development are getting a second look. It's cautious optimism, but the tone has improved from earlier this year." Delta Lithium (ASX:DLI) managing director James Croser: "There's perhaps a glimmer of dawn on the horizon after a very long night. I want to believe that this uptick in sentiment is a collective realisation that the tide may be on the turn and the relentless adoption of new battery technologies and applications, and persistent double digit growth in most markets will in fact translate into improved market pricing in the long run. I mean, how can it not? But I've been wide awake since midnight waiting for that dawn, seen a couple of false ones and we need to be cautious that our optimism isn't clouding our vision." What potential catalysts are on the horizon that could create a boon in the lithium space? SP: "Interest rate cuts and more dovish monetary policy is what I'm looking at. I think Trump is bang on the money in that it needs to flow again. Easier access to money will mean households will have more money to spend on relative luxury items like EVs, although the price gap has diminished or reversed as of late with the advent of the Chinese EVs." AR: "Several key catalysts could trigger a strong re-rating across the lithium sector, such as a potential revival of EV subsidies in Europe or the US could direct significant capital toward EV supply chains in an effort to break China's dominance on processing. Rising investment in grid-scale battery storage, driven by the global rollout of renewable energy infrastructure and the ever growing rise of the AI sector is also emerging as another major demand driver. "In China, recent signs of supply-side discipline – including Zangge Mining's decision to halt lithium production – highlights efforts to stabilise prices, and any further pro-EV or economic support measures from Beijing would add upward pressure. "Finally, M&A activity remains a powerful catalyst; strategic acquisitions by automakers, battery manufacturers, or majors seeking to lock in supply are likely to drive a valuation reset across the developer end of the market." JC: "On top of consistent EV demand growth, I think renewables and the associated fixed battery storage requirements are the dark horse. Having batteries on your business/house with solar on the roof is akin to putting a water tank next to a windmill. It's obvious that one complements the other. People are just getting over the novelty of solar, wait until everyone works out that having battery storage is like keeping the solar on all night! "Politically, I think seeing serious downstream processing outside China by the Europeans/North Americans/Japanese will go a long way in breaking the pricing power that the Chinese now possess for lithium raw materials. That'll likely require government assistance at these prices, so I'll be looking for some firm government actions to back up the rhetoric and ultimately provide a broader customer base for the miners." How do you view the future of global lithium demand, and which countries will lead the charge as China dominates EV production? SP: "That will continue to be the trend. China is close to the great tipping point. One in two cars sold in China are EVs and they could move to close to 100% EV penetration soon. The USA EV sales will respond with more dovish monetary policy." AR: "China remains dominant in battery manufacturing and electric vehicle production, currently selling over 1 million EVs per month, a staggering pace that has helped push global EV adoption to a tipping point, with one in every four new vehicles sold now electric. "Whilst China leads today, we see a more diversified future emerging over the next 5–10 years. The US and Canada continue to invest heavily in scaling domestic EV and battery supply chains, with a growing focus on building out domestic critical mineral production and processing. Europe is similarly accelerating efforts to localise refining capacity and secure offtake agreements, aiming to reduce reliance on China amid tightening ESG and supply-chain transparency standards. "On the supply side, Argentina and Australia remain critical players with Argentina offering tier-1 brine resources, increased judicial and regulatory certainty, low-cost extraction potential, and faster development pathways. Demand for lithium isn't disappearing; it's shifting regionally. This transition is fuelling a new wave of investment, and competition across the global battery materials landscape." JC: "China doesn't look like it's giving up first place any time soon. They have really bet the farm on lithium and invested a huge amount of capital in the battery supply chain going back at least 10 years. "There's a long way to go before EVs inevitably overtake vehicles on the road, so I expect growth and innovation in the EV sector to continue apace. There's pretty strenuous competition going on between the new Chinese car manufacturers and the old car companies, with new models coming out all the time. Competition is good for consumers, so I expect the product offering to improve and strong competition to persist. Global EV penetration looks almost certain to continue to grow: the genie is well and truly out of the bottle, and it's a pretty cool genie with more torque and less moving parts." What are the key challenges and opportunities you foresee in the lithium market over the next 12 months? SP: "We could have a scramble for lithium supply if the Chinese market passes the tipping point. Car purchases are subject to the network effect where people tend to follow their neighbours. China is currently the only market that matters and they're at 50% EV penetration. "Chariot is well setup after this downturn. We have reacquired the Horizon property with a 10.2Mt LCE resource and taken a 66.667% stake in a magnificent portfolio of spodumene bearing projects in Nigeria in the most counter cyclical way possible." AR: "The lithium sector continues to face real challenges over the next 12 months with ongoing price volatility and a significantly tighter capital environment making it increasingly difficult for developers to raise the funds needed to progress projects compared to other commodities such as gold or copper. Negative sentiment around spodumene oversupply continues to cloud investor outlook, even though brine based projects remain comparatively low cost and economically robust even at current price levels of between US$8-10,000/t for lithium carbonate. "Despite these challenges, there are clear opportunities emerging. Juniors with pilot scale operations or near term development timelines, particularly in Argentina, are well positioned to attract offtake interest as buyers look to diversify. ESG aligned, low cost brine projects are gaining traction with Western partners, and any recovery in sentiment, or lithium demand could sharply re-rate quality assets that are development-ready. "Companies that come out with massive production targets above 20,000tpa of new material without the balance sheet to support it or are NPV chasing to try and look good in the market will struggle to gain investor interest. Investors can see the demand piece for lithium remaining intact with demand set to hit near 3 million tonnes by 2030, however it's capital discipline and realistic scalable projects that will win out long term." JC: "I feel a little relieved that Delta isn't trying to navigate this price trough as a producer. Our challenge at Delta is to position our business and manage capital effectively through the downturn, keep our projects ticking along and be ready to come out of the blocks when real improvement shows up."
Yahoo
13-07-2025
- Business
- Yahoo
ASX Growth Stocks With High Insider Ownership Include Liontown Resources And 2 More
As the Australian market aligns with U.S. trends, the ASX 200 is poised for gains, mirroring Wall Street's recent highs driven by tech giants like Nvidia. In this environment of growth and optimism, stocks with high insider ownership can be particularly appealing as they often indicate confidence from those closest to the company's operations and strategy. Name Insider Ownership Earnings Growth Newfield Resources (ASX:NWF) 31.5% 72.1% Image Resources (ASX:IMA) 22.3% 79.9% Fenix Resources (ASX:FEX) 21.1% 53.4% Echo IQ (ASX:EIQ) 18% 51.4% Cyclopharm (ASX:CYC) 11.3% 97.8% Brightstar Resources (ASX:BTR) 11.6% 115.1% AVA Risk Group (ASX:AVA) 15.4% 108.2% Alfabs Australia (ASX:AAL) 10.8% 41.3% Adveritas (ASX:AV1) 18.1% 88.8% Acrux (ASX:ACR) 15.5% 106.9% Click here to see the full list of 93 stocks from our Fast Growing ASX Companies With High Insider Ownership screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: Liontown Resources Limited focuses on the exploration, evaluation, and development of mineral properties in Australia with a market cap of A$1.97 billion. Operations: Liontown Resources Limited does not currently report any revenue segments. Insider Ownership: 15.1% Earnings Growth Forecast: 51.2% p.a. Liontown Resources is poised for substantial growth, with revenue expected to increase by 30.1% annually, surpassing the Australian market's average. Despite a forecasted low return on equity and recent insider selling, the company is trading significantly below its estimated fair value. Leadership transitions are underway, with key executive changes announced recently, ensuring continuity and stability. Liontown's anticipated profitability in three years aligns with above-market growth expectations amidst these strategic shifts. Get an in-depth perspective on Liontown Resources' performance by reading our analyst estimates report here. Insights from our recent valuation report point to the potential undervaluation of Liontown Resources shares in the market. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Regal Partners Limited is a privately owned hedge fund sponsor with a market cap of A$884.27 million. Operations: The company's revenue segment consists solely of the provision of investment management services, amounting to A$257.55 million. Insider Ownership: 26.9% Earnings Growth Forecast: 20.3% p.a. Regal Partners is positioned for growth, with earnings forecast to rise by 20.35% annually, outpacing the broader Australian market. Despite recent substantial insider selling, the company trades at a discount to its estimated fair value and peers. Regal's disciplined acquisition strategy aims to enhance shareholder value through EPS-boosting purchases. However, its dividend yield of 7.6% is not well covered by free cash flows, indicating potential sustainability concerns amidst strategic expansion efforts. Click here to discover the nuances of Regal Partners with our detailed analytical future growth report. Upon reviewing our latest valuation report, Regal Partners' share price might be too pessimistic. Simply Wall St Growth Rating: ★★★★★☆ Overview: Temple & Webster Group Ltd operates as an online retailer specializing in furniture, homewares, and home improvement products in Australia with a market cap of A$2.59 billion. Operations: The company generates revenue of A$557.72 million from its online retail sales of furniture, homewares, and home improvement products in Australia. Insider Ownership: 12.3% Earnings Growth Forecast: 35.8% p.a. Temple & Webster Group is set for robust growth, with earnings projected to rise 35.82% annually, significantly outpacing the Australian market. Despite no recent insider trading activity, the company has initiated a share buyback program to repurchase up to 10% of its shares, indicating confidence in its valuation. While profit margins have declined slightly from last year, revenue is forecasted to grow at a strong rate of 17% per year. Dive into the specifics of Temple & Webster Group here with our thorough growth forecast report. Our valuation report unveils the possibility Temple & Webster Group's shares may be trading at a premium. Click through to start exploring the rest of the 90 Fast Growing ASX Companies With High Insider Ownership now. Ready For A Different Approach? Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include ASX:LTR ASX:RPL and ASX:TPW. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
