https://www.miningweekly.com
Business|Financial|Iron Ore|Projects|Resources
Business|Financial|Iron Ore|Projects|Resources
business|financial|iron-ore|projects|resources

Liontown shares plunge as Albemarle seeks to exit Australian lithium developer

18th January 2024

By: Reuters

  

Font size: - +

Shares of Liontown Resources fell about 15% on Thursday to hit their lowest level in 18 months after a term sheet showed Albemarle was trying to sell its stake in the Australian lithium developer.

Months after its A$6.6-billion ($4.32-billion) buyout bid was blocked by Australia's richest person, Gina Rinehart, Albemarle has offered to sell roughly 96-million shares it holds in Liontown for around A$121-million in a block trade, the term sheet showed, which represents its entire stake in Liontown.

Liontown shares dropped 14.7% to A$1.16 by 00:03 GMT, hitting their lowest since July 21, 2022. The stock emerged as the top loser on the benchmark stock index.

US-based Albemarle, the world's biggest lithium producer, was dumped thrice by the Australian lithium firm before Liontown granted it due diligence in September 2023.

Albemarle withdrew its indicative proposal in October last year amid "growing complexities," after Hancock Prospecting, an iron ore miner controlled by Rinehart, raised its stake to 19.9% of Liontown.

"There's been a lot of moving and shaking in Australian lithium as investors look for high-quality assets that are positioned to benefit from a very powerful secular trend," said Kyle Rodda, a senior financial market analyst at Capital.com.

"I think the business and shareholders would have much preferred Albemarle to take a controlling stake in the business; Hancock and Rinehart made that complicated and obviously untenable."

The US-based lithium developer said on Wednesday it would cut jobs and postpone spending on projects, including putting back on plans to build a fourth lithium hydroxide processing train in Western Australia.

Edited by Reuters

Comments

Latest Multimedia

Photo of Martin Creamer
On-The-Air (06/12/2024)
Updated 2 hours 32 minutes ago By: Martin Creamer

Showroom

Alco-Safe
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 
BOVA Safety Wear
BOVA Safety Wear

BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 06 December 2024
Magazine round up | 06 December 2024
6th December 2024
Menar awaits Competition approval for re-start of major ferromanganese facility
Resources Watch
4th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.063 11.872s - 143pq - 2rq
Subscribe Now