Hancock Prospecting increases Liontown holding to 10.7%

Gina Rinehart’s Hancock Prospecting has increased its holding in Liontown Resources (ASX:LTR) to 10.7%.

The company has increased its holding from its initial 7.72% investment it made in early September 2023.

This increased strategic stake was acquired for no more than $3 per share and at an average price per share well below that level.

While lithium prices have continued to fall since Hancock first became a Liontown shareholder, Hancock maintains a long-term approach to its investments and commodity markets.

Hancock’s shareholding gives Liontown the opportunity to leverage Hancock’s expertise to support the development and operations of its Kathleen Valley lithium project in WA.

The 4mtpa production rate of Kathleen Valley, which increased from 3mtpa, is significant for an underground operation and carries corresponding production and operating cost risks. Further, its target recovery rate, which is modelled at 78%, also exceeds the recoveries achieved by most existing and planned lithium producers in the state.

First production at Kathleen Valley is targeted for mid-2024.