What's coming up for the Liontown share price in June?

Where are Liontown's shares heading in June?

| More on:
A woman with black afro hair and wearing a white t-shirt shrugs and purses her lips

Image source: Getty Images

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 has started the month in a very disappointing fashion.

After just three trading days, the lithium developer's shares are down 10.5%.

Though, that's a decent outcome given the Liontown share price was down as much as 19% on 1 June.

What's next for the Liontown share price?

The Liontown share price could be given a boost and put this recent blip behind it on Monday.

That's because on Monday the company is scheduled to announce a definitive full form binding offtake agreement with electric car giant Tesla.

Last week Liontown advised that the two parties had mutually agreed to extend the termination date for the binding lithium offtake term sheet until 6 June. This was to allow Liontown and Tesla to complete negotiations for the agreement.

If everything goes to plan, Tesla will be signing up for up to 150,000 dry metric tonnes per annum of spodumene concentrate from Liontown's Kathleen Valley project from 2024. This represents approximately one-third of the project's start-up production capacity of ~500,000 tonnes per annum.

This will complement the definitive full-form offtake agreement the company has signed with LG Energy Solution. That agreement is for the supply of 100,000 dry metric tonnes in the first year, increasing to 150,000 tonnes per year in subsequent years.

But it is unlikely to stop there. The company recently confirmed that it continues to progress negotiations with other potential tier-one global customers that would complement its offtake strategy.

Are its shares in the buy zone?

One broker that appears to see a lot of value in the Liontown share price is Macquarie.

Last week the broker retained its outperform rating and $2.50 price target on the company's shares. This is almost double the current Liontown share price.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Materials Shares

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Materials Shares

ASX mining in April 2024: The best stock to buy right now

Analysts at Bell Potter think this mining stock could offer big returns.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

The Core Lithium share is down 27% in March: What's next?

Times have been hard for this lithium miner's shareholders. Will things improve?

Read more »

A female worker in a hard hat smiles in an oil field.
Materials Shares

Why it's a great day to own BHP shares

The Big Australian's shareholders have reason to smile on Thursday.

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Materials Shares

Why did this ASX All Ords stock just crash 36%?

Investors have been hitting the sell button on Tuesday.

Read more »

A miner in a hardhat makes a sale on his tablet in the field.
Materials Shares

Lake Resources share price surges on sustainable lithium news

Lake Resources shares are enjoying a welcome lift today.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Materials Shares

Mineral Resources shares fall despite 'exceptional results'

This mining and mining services company has provided an update on its energy business.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Are Pilbara Minerals shares in the buy zone or overvalued?

Here's what Bell Potter is saying about the lithium giant.

Read more »

Three guys in shirts and ties give the thumbs down.
Materials Shares

3 reasons to sell Core Lithium shares

This lithium miner's decline may not be over according to Goldman Sachs.

Read more »