Liontown Resources readies for ‘transition year' in FY26 as it ends year with $156m cash
The Gina Rinehart-backed company on Tuesday reported more than 300,000 tonnes of spodumene concentrate had been produced in the first 11 months of operation near Leinster.
Liontown recorded net positive operating cash flow of $23 million in the three months to the end of June and finished the period with $156m in the bank, despite a 9 per cent quarter-on-quarter drop in average realised prices.
Revenue for the year came in at $301m.
Managing director Tony Ottaviano said it had been a strong finish to the company's first year of operations.
'With lithium prices falling 24 per cent (~$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 said.
'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 said plans to shift mining underground remained on track as it targets production run rates of one million tonnes a year by September and 1.5mtpa by March 2026.
It said it continued to see a 'robust' outlook for lithium, underpinned by strong demand for high-quality spodumene concentrate.
'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 said.
'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 could be clearer skies ahead for WA's beaten-down lithium miners.
Futures covering lithium-rich spodumene have bounced as much as 29 per cent to $US790/t ($1200/t), still well short of the $US1100/t it was fetching 13 months ago but a considerable improvement on its bottom of $US605/t in the first week of June.
Liontown is forecasting FY26 production of between 365,000t and 450,000t — a 24 per cent to 53 per cent increase from last financial year.
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News.com.au
3 days ago
- News.com.au
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News.com.au
4 days ago
- News.com.au
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AU Financial Review
5 days ago
- AU Financial Review
Liontown reveals slower lithium growth as Ford shaves supply contract
American car giant Ford has reduced its lithium purchase order from Liontown Resources, as the slowdown in electric vehicle sales in North America adds to pressure on the cash-burning West Australian miner. Liontown's cash balance declined by a further 10 per cent over the past three months as weak lithium prices ensured revenues could not cover the ongoing cost of building an underground mine at Kathleen Valley, about 800 kilometres north-east of Perth.
