The Liontown Resources Limited (ASX: LTR) share price beefed right up in FY22 and managed to hold gains amid the market sell-off last month.
At the time of writing, the share is trading at 94.5 cents, slightly down from the $1 it finished the year on.
Nevertheless, the Liontown share price had a robust year, and remained in the green whilst the broad market incurred heavy losses.
Liontown share price remains top-heavy
Shares in the company first took off back in August 2021 amid a series of price-sensitive updates, including the proposed demerger and IPO of its lithium assets.
The spin out was completed to form Minerals 260 Ltd (ASX: MI6), a newly listed public company. It also released a number of other updates throughout August/September to which investors were galvanised.
Liontown caught a heavy bid and its share price raced to a high of $1.94 by 4 November, a 158% increase in just just 3 months.
The price of lithium also remained strong across FY22 despite a number of potential threats, ranging from supply chain breakdown to geopolitical conflict in Europe.
Not to mention that now infamous bearish note out of Goldman Sachs earlier in 2022 that sent the basket of lithium shares into near meltdown.
In that vein, the company secured offtake agreements with Ford and signed its deal with Tesla, with the latter agreeing to buy 150,000 dry metric tonnes of spodumene concentrate off Liontown each year.
Liontown has also remained in favour of brokers as well. Bell Potter reckons the share is “in a strong strategic position in a market for lithium facing supply shortages”.
It values Liontown at $3.06 per share and rates it a speculative buy.
Nonetheless, the Liontown share price was a performer in FY22 and it has managed to hold a 28% gain over the past 12 months, despite recent volatility.
The post Liontown Resources roared home with a 30% gain in FY22 appeared first on The Motley Fool Australia.
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More reading
- Can ASX lithium shares recharge in FY23?
- Own Liontown shares? Here are 3 takeaways from the company’s investor presentation
- Why did the Liontown share price plummet 25% in June?
- Will the Liontown share price bounce back in July?
- Top broker names 3 of the best ASX 200 shares to buy in FY23
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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