This report is an updated version of the report published on 11 July 2025 at 1:16 PM AEST.

Liontown Resources Limited (ASX: LTR)

LTR is an Australia-based battery minerals producer. It controls two major hard rock lithium deposits. LTR's projects include the Kathleen Valley Project and the Buldania Project.

Recommendation Rationale – SELL at AUD 0.865

• Negative Highlights: LTR’s cash reserves fell by 10% to AUD 173mn as on 31 March 2025, down from AUD 193mn as on 31 December 2024. Additionally, open pit ore mined (including ore sort plant feed) dropped 51% QoQ to 555 kilotonnes in Q3FY25 from 1,138 kilotonnes in Q2FY25.
• Trading Near the Resistance: LTR stock has surpassed its R2 level recommended on 09 July 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/EBITDA, Price/Book and Price/Cash Flow) are higher than median of the Basic Materials Sector.
• Market Risk: The long-term prospects of LTR are tied to the growth of the electric vehicle (EV) and energy storage markets, which drive lithium demand. Slower-than-expected EV adoption or shifts in battery chemistries that reduce lithium intensity could negatively affect demand and prices.

LTR’s Daily Price Chart

Valuation Methodology: EV/Sales Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering factors such as the QoQ revenue growth in Q3FY25, QoQ concentrate production increase in 3QFY25 and QoQ decrease in SC6e unit operating cost in Q3FY25. For conducting the valuation, following peers have been considered: Capricorn Metals Ltd (ASX: CMM), Pilbara Minerals Ltd (ASX: PLS), Gold Road Resources Ltd (ASX: GOR), and others.

Considering that the stock has surpassed its R2 level, rally in share price, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 0.865, as of 11 July 2025, at 10:20 AM AEST.

Liontown Resources Limited (ASX: LTR) is a part of Global Green Energy Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 11 July 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.