Liontown (LTR) investor relations material

Expansion overview

• Final investment decision approved for a $389m expansion to increase production capacity from ~500 ktpa to ~780 ktpa of spodumene concentrate, targeting first ore in Q1 FY28 and full ramp-up by Q1 FY30.

• Expansion will be achieved by developing Kathleen's Corner Underground, upgrading the processing plant from 2.8 Mtpa to 4.2 Mtpa, and enhancing non-process infrastructure including power, water, and accommodation.

• The project is expected to create approximately 400 full-time jobs and deliver a payback period of around 2.5 years from the end of construction.

• Capital intensity of A$1,619/dmt is among the lowest for recent brownfield lithium expansions, with funding sourced from existing cash and operating cash flow.

• Expansion positions the operation among the world’s top 10 lithium producers by 2030, consolidating its global standing.

Financial and operational metrics

• Unit operating costs are forecast at $840–920/dmt (FOB) over a five-year average from FY30, with sustaining capital of $90–100m.

• FY27 guidance includes $115–125m of incremental expansion capital, with total capital expenditure for the year at $435–495m.

• Concentrate production is expected to average 780 ktpa at 5.4% Li₂O from FY30, with long-term spodumene prices estimated at US$1,495/dmt (CIF Asia).

• The expansion is designed to lower unit costs by 23% compared to FY27 guidance, reinforcing a competitive cost position.

• Capital expenditure is phased over three years to align with market demand and operational ramp-up.

Market outlook and strategic positioning

• The lithium market is expected to remain finely balanced in 2026–2027, with potential for volatility due to inventory levels and new supply additions.

• Brownfield expansions like this are expected to meet near-term demand, but long greenfield project lead times may widen the supply gap over time.

• The expansion provides flexibility to sell into the spot market or via offtake agreements indexed to spodumene prices.

• The project’s low-risk, brownfield nature and built-in execution flexibility allow for adaptation if market prices soften.

• Consensus pricing data for spodumene concentrate supports robust long-term economics for the expansion.