The Liontown Resources Limited (ASX: LTR) share price is up 2.69% in lunchtime trading amid the company releasing its quarterly activities report ending 30 September.
Shares of the battery metals exploration company are currently trading for $1.91 each.
Let's go over the report's highlights.
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What did Liontown report?
- Net cash used in operating activities: $2.53 million
- Net cash used in investing activities: $26.05 million
- Net cash used in finance activities: $4.64 million
- Cash and cash equivalents at end of the period: $419.84 million
Liontown received approval for its mining and work proposal from the Western Australian government, allowing the company to start preparations for the Kathleen Valley lithium project.
Throughout the quarter, Liontown also onboarded some key suppliers.
One of Liontown's most significant developments was engaging 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 power specialist Zenith Energy also secured a contract to build a wind-solar battery storage power station at the site. The report notes it's expected to be the largest of its kind once it's completed.
What else happened in FY22?
The company also outlined other efforts to help Kathleen Valley become operational.
Liontown received a permit to extract water and clear native vegetation for the project's tenements. It has also made significant progress on its design and construction, and construction of the camp is well underway.
"Highly regarded" corporate lawyer Adrienne Parker has been appointed as a new non-executive director.
What did management say?
Liontown managing director Tony Ottaviano said:
The September quarter was an exciting period for Liontown with activity levels stepping up significantly across the business, new faces joining the Company as we continued to build out our high-calibre team and the Kathleen Valley site gearing up for a transformational period. The importance of a highly experienced team cannot be understated 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, labour markets and equipment and material availability in the short term.
Liontown share price snapshot
The Liontown share price is up around 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 index currently down 7.85% over the same period.
The company's market capitalisation is around $4.2 billion.
