Liontown Resources readies for ‘transition year’ | Australian Markets
Liontown Resources expects FY26 can be a “transition year” because the lithium miner strikes underground at Kathleen Valley within the northern Goldfields and awaits a sustained rebound in costs for the important thing battery materials.
The Gina Rinehart-backed company on Tuesday reported more than 300,000 tonnes of spodumene focus had been produced within the first 11 months of operation close to Leinster.
Liontown recorded internet optimistic working money movement of $23 million within the three months to the tip of June and completed the period with $156m within the bank, regardless of a 9 per cent quarter-on-quarter drop in average realised costs.
Revenue for the yr got here in at $301m.
Managing director Tony Ottaviano stated it had been a robust end to the company’s first yr of operations.
“With lithium prices falling 24 per cent (~$US203/t) during the quarter, our strategy to process stockpiles enabled us to preserve cash and maintain a strong cash balance at year end,” Mr Ottaviano stated.
“This has been enabled by the leading design and the performance of our fourth-generation process plant and the team’s focus on preserving cash.
“FY26 will be a transition year. Our focus is clear, we need to complete the underground transition, manage costs and cash tightly, and prepare the plant to fully leverage high-grade, low-contamination underground ore in the second half.
“We’re confident that by executing our plan in FY26, the company will emerge stronger from this low-price environment”.
Liontown stated plans to shift mining underground remained on monitor because it targets manufacturing run charges of a million tonnes a yr by September and 1.5mtpa by March 2026.
It stated it continued to see a “robust” outlook for lithium, underpinned by robust demand for high-quality spodumene focus.
“In the first six months of 2025, lithium demand has continued its double-digit growth rates, driven by strong electric vehicle sales and energy stationary storage installations,” it stated.
“Global EV sales increased by 28 pe rcent and ESS installations increased by 54 per cent, both compared to the first six months of 2024.
“The current lithium price environment reflects evolving supply-demand dynamics, and we anticipate a return to more normalised conditions as demand continues its robust long-term growth trajectory.”
But there might be clearer skies forward for WA’s beaten-down lithium miners.
Futures masking lithium-rich spodumene have bounced as a lot as 29 per cent to $US790/t ($1200/t), nonetheless effectively short of the $US1100/t it was fetching 13 months in the past however a appreciable enchancment on its backside of $US605/t within the first week of June.
Liontown is forecasting FY26 manufacturing of between 365,000t and 450,000t — a 24 per cent to 53 per cent increase from final financial yr.
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