With construction of the Kathleen Valley project largely complete, LTR achieved first spodumene concentrate production in the quarter (28.2kt produced) and its maiden shipment (10.8kt sold). A key positive was an initiation of a spot sale strategy which achieved a higher price than the prevailing spot price. Ramp-up of operations is ongoing, with costs expected to normalise at steady-state (1QCY25). LTR had A$263.1m in cash at the end of September and is funded following the securing of the US$250m convertible note. The ongoing ramp-up at Katheleen Valley and the optimisation study (due end CY24) are key near-term catalysts. We are reiterating our BUY rating and A$1.30 price target.
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