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Thoughts on Liontown Resources (LTR) please

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Thoughts on Liontown Resources (LTR) please

Hi James and Team Gina Rinehart’s Hancock Prospecting has become a substantial shareholder in Liontown Resources (7.72%), Do you think Hancock will launch a rival bid to acquire Liontown? Shares have been trading above the $3 bid price If you were a holder of LTR would you continue to hold or sell? regards Debbie


Hi Debbie,

We don’t hold or intend to buy Liontown Resources (LTR) at the moment but with US lithium heavyweight Albemarle having made a non-binding $3 a share bid the risk/reward does look appealing with the stock trading at $3.02 on Friday. Following Gina Reinhart’s recent buying we quoted Arthur Conan Doyle last week:

  • The game appears to be afoot with LTR, we can see new highs above $3.20 in the weeks/months ahead.

However this is a  “situation play” and if Albemarle become frustrated and walks away the stock could easily drop 15-20% – not a preferred scenario i.e. the risk/reward doesn’t stake up here.

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Liontown Resources Ltd (LTR)
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