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

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

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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.

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