Liontown (LTR) H1 2025 earnings summary

Executive summary

• Achieved commercial production at Kathleen Valley effective 1 January 2025, with strong operational ramp-up and plant performance exceeding expectations in the first five months.

• Produced 117,000 dmt and shipped 92,000 dmt of spodumene concentrate, generating $100.4 million in sales for H1 FY25.

• Maintained a robust cash balance of $192.9 million at 31 December 2024.

• Declared a net loss after tax of $15.2 million for the period, reflecting ramp-up and pre-commercial production accounting.

• Entered a strategic partnership with LG Energy Solution, including US$250 million convertible notes and a 10-year offtake extension.

Financial highlights

• Sales revenue of $100.4 million for H1 FY25, with an average realised price of US$811/dmt and unit operating cost of $652 per ton (6% concentrate basis).

• Prima facie EBITDA of $66 million; adjusted EBITDA of $27 million after capitalising $39 million in commissioning costs.

• Depreciation and amortisation charges totaled $88 million, mainly from open pit mining amortisation and pre-strip costs.

• Net cash from operating activities of $16.7 million in Q2 FY25; adjusted to $11.5 million after capitalised commissioning costs.

• Inventory increased to $130 million, with 1.3Mt supporting the underground transition.

Outlook and guidance

• Confident in meeting H2 FY25 guidance, with underground mining transition and cost optimisation ongoing.

• Targeting lithia recovery of ~70% by Q3 FY26, with ongoing process improvements.

• Mill expected to be supplied solely by underground volumes and stockpiles by Q4 FY26.

• Directors' cash flow forecast indicates sufficient liquidity for the next 12 months, assuming current spot prices and continued cost optimisation.

• Future expansion optionality preserved for improved market conditions.