Liontown (ASX:LTR) share price hits new 52-week high

Since the end of May, Liontown shares have surged more than 80%.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Liontown Resources Limited (ASX: LTR) share price soared more than 9% higher today.

Today's bullish price action has propelled shares in the mineral explorer to a new 52-week high.

At market close, the Liontown share price is trading at 85 cents. Shares in the company were up more than 10% earlier today after hitting an intraday high of 86.5 cents.

Let's take a look at what's fuelling the Liontown share price.

red arrow representing a rise of the share price with a man wearing a cape holding it at the top

Image source: Getty Images

Snapshot of the Liontown share price

Liontown has not released any price sensitive news that could explain today's bullish movements.

Shares in the mineral explorer have been on a miraculous run in the past month. The Liontown share price has surged more than 80% since the end of May. In addition, shares in the company have rocketed more than 137% since the start of the year.

What is fuelling the Liontown share price?

The Liontown share price has been the beneficiary of increased mining exploration expenditure and a commodity price boom in 2021.

Liontown is best known for its Kathleen Valley Lithium project in Western Australia. Late last year, the company informed investors that the project was the 4th largest hard rock lithium resource in the world.

In a pre-feasibility study last year, Liontown highlighted strong economics for the project. According to the company, the Kathleen Valley project has a net present value of $1.12 billion and development capital costs of ~$325 million. 

In a statement earlier this year, Liontown noted a number of additional improvements for the project. The company plans on having the mine commissioned and into production in the first half of 2025.

In addition to its lithium project, Liontown has identified 3 gold bedrock zones within its Moora Project. The company noted that further testing in the south-east zone was needed as the potential for more gold and copper reserves in the area is high.

Most recently, Liontown released an update on its intention to spin off its Moora and Koojan joint-venture projects.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »