If you'd invested $3,000 in Liontown Resources Ltd (ASX: LTR) shares at this time last year, you'd be nursing some hefty losses.
Hit by another sharp retrace in lithium prices over the latter months of 2023, shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock are down a painful 48.8% over the full year.
But that's not what we're here to talk about.
Because a month ago, on 23 April, Liontown shares began a remarkable turnaround.
At the time, you could have snapped up the ASX 200 lithium stock for $1.10 a share.
So, you could have bought 2,727 shares with a $3,000 investment.
Since then the stock has soared 28.6% to today's $1.41 a share.
That means your 2,727 shares purchased just one month ago would be worth $3845.07 today.
Quite a tidy profit from a stock that proved it's no falling knife.
Here's what's been stoking ASX 200 investor interest.
Image source: Getty Images
Why have Liontown shares been on a tear?
The ASX 200 lithium stock ended April with a bang.
On 29 April, Liontown shares closed up 8.0% after the company reported some strong quarterly results.
Liontown is not yet in the production stages of lithium. The miner is currently developing its Kathleen Valley Lithium Project in Western Australia.
And investors reacted positively to news that Kathleen remains on track and on budget for first production by mid-2024.
Management noted that as at 31 March Kathleen was more than 85% complete "on an earned value basis".
March also saw the miner hit another significant milestone at Kathleen with commissioning commenced at the dry plant towards the end of the month.
Liontown shares received some extra tailwinds two weeks ago, on 10 May, when the company released a new progress update for the project.
The ASX 200 lithium stock reported inking a $71 million agreement with GR Engineering Services Ltd (ASX: GNG) for the Engineering, Procurement and Construction (EPC) contract at Kathleen.
GR Engineering will deliver and commission the project's Paste Plant facility which will support underground mining operations.
"We are pleased to award the contract for the design and construction of the Paste Plant which will support and further de-risk the planned underground production rates at Kathleen Valley," Liontown CEO Tony Ottaviano said.
And Motley Fool analyst James Mickleboro noted how this might offer a boost for Liontown shares:
The good news is that this forms part of planned and budgeted next stage of growth capital costs post first production and funding is covered by the recently announced $550 million financing facility.
