Liontown (LTR) H2 2024 earnings summary

Executive summary

• Achieved first spodumene concentrate production at Kathleen Valley Lithium Project on schedule, transitioning from explorer to producer.

• Secured long-term offtake agreements with LG Energy Solution, Tesla, and Ford, and a US$250M convertible note investment from LG Energy Solution post year-end.

• Managed significant corporate activity, including a withdrawn takeover offer from Albemarle and successful $389.6M equity raise.

• Prioritized safety, achieving a TRIFR of 5.99 and LTI rate of 0.33, both surpassing targets.

Financial highlights

• Reported net loss after tax of $64.9M, up from $22.2M in FY23, mainly due to increased corporate/admin expenses and finance costs.

• Cash on hand at 30 June 2024 was $122.9M (down from $305.4M in FY23).

• Net assets grew to $770.1M (from $449.7M in FY23); property, plant, and equipment rose to $1,200.6M.

• $881M invested in property, plant, and equipment additions in FY24.

• Net cash outflow from operating activities was $47.0M; investing outflows $680.8M; financing inflows $545.3M.

Outlook and guidance

• Ramp-up to steady-state production at Kathleen Valley targeted for Q1 CY2025.

• Focus on operational efficiency, cost optimization, and business readiness to mitigate lithium price volatility.

• Downstream strategy includes feasibility studies with Sumitomo and LG Energy Solution for lithium chemical conversion and refinery development.