Rinehart-backed Liontown sees prices curbing new projects

Liontown Resources Ltd., the lithium miner backed by Australian billionaire Gina Rinehart, warned that low prices for the key battery metal would weigh on new projects as it reported improved first-half results.

The firm posted a net loss of A$15.2 million ($9.6 million) for the six months through December, walking back a A$31 million loss from a year earlier, according to a statement Friday. Shares rose 6.1% in Sydney trading at 1 p.m.

While the firm’s Kathleen Valley lithium mine was expected to meet production guidance in the second half, Liontown said that “new projects will be more difficult to induce” at current price levels. Lithium has slumped more than 80% since 2022.

Rinehart holds 18% of Liontown’s stock as the largest shareholder, according to data compiled by Bloomberg.

(By Nasteho Said)