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Liontown, Australia's largest energy company, posts a larger interim loss due to LG Energy stake sales charge

Liontown, Australia's largest food and beverage company, reported a wider first-half loss on Thursday. The reason for the widened loss was a?non-cash accounting expense after South Korea's LG Energy Solution sold its stake in the firm last month.

By 2324 GMT, shares of the company were down by as much as 2,5% to A$1.59

Lithium producer reported a net loss after tax of A$184m ($131.25m) on a legal basis for the six-month period ended December 31 compared to a loss of A$15m in the previous corresponding period.

Liontown reported a?reported?loss? that included a?non cash accounting charge? of A$104million after the South Korean firm sold its 7.5% share in the company worth at least A$419million in a block deal.

LG Energy is no longer a Liontown shareholder as a result of the sale. However, it expects to realise a gain of A$58m upon conversion into equity. This will be reflected in its results for the full year.

A brownfield expansion?is also underway at the company's flagship Kathleen?Valley Project, and is expected to lower unit costs due to increased scale.

In its statement, it said: "We are advancing critical procurement right now."

(source: Reuters)