The Liontown Resources Ltd (ASX: LTR) share price is rising on Tuesday.
In morning trade, the lithium developer's shares are up 1.5% to $1.67.
What's going on with the Liontown share price today?
Investors have been buying the company's shares today following the release of its quarterly update.
Given that Liontown is still some way off production, it isn't generating any revenue at present. But it certainly is spending a lot!
According to the release, the company spent approximately $130 million on its construction activities during the three months. This follows approximately 530,000 site hours worked, which is up from 326,000 in the June quarter.
The release notes that more than 3,000m3 of structural concrete was poured at the Process Plant throughout the quarter. This means that Process Plant total structural concrete poured to date is over 8,800m3 from a total of 10,900m3. Pleasingly, this means it remains on schedule.
In addition, the Hybrid Power Station was substantially advanced during the quarter with the solar farm now 82% complete, thermal power station and LNG facilities 50% complete, and the first wind turbine footing poured.
All in all, the Kathleen Valley Lithium Project is now more than 50% complete.
At the end of the period, the company had a cash balance of $285 million. Since then, it has secured $760 million of debt funding and $376 million through a capital raising. This means that Kathleen Valley is fully funded to production and beyond.
Management commentary
Liontown's Managing Director, Tony Ottaviano, appeared to be pleased with the progress the company is making. He said:
The September quarter was another busy one for Liontown and its contractors, as construction of our world-class Kathleen Valley Lithium Project passed the halfway mark. "To the credit of the entire Liontown team, Kathleen Valley remains on schedule with all major mining and construction contracts now awarded and more than 90 percent of capital costs committed, ensuring we have a clear line of sight through to first production in mid-2024.
On the operational readiness front, we are rapidly filling operational and corporate roles and onboarding these new employees, as well as establishing the systems and processes required to function as a modern, efficient mining company that holds safety as a core value. Subsequent to quarter-end, the finishing touches were put on a funding package several months in the making that sees Liontown funded through to first production and beyond. The debt and equity package was sized to ensure we have a prudent buffer as we enter the commissioning phase.
