Liontown (LTR) H2 2025 earnings summary

Executive summary

• FY2025 marked the first year of production at Kathleen Valley, with successful construction, commissioning, and transition to operations, producing 294,521 dmt concentrate and selling 283,443 dmt.

• Generated A$298 million in revenue and A$55 million underlying EBITDA (18% margin) despite challenging lithium market conditions.

• Statutory net loss after tax was A$193 million, mainly due to A$81 million non-cash inventory write-down and A$159 million depreciation/amortisation.

• Operating cash flow was breakeven, supported by disciplined cost management and A$112 million in cost savings and deferrals.

• Pro forma cash position strengthened to A$528 million after a $372 million equity raise post-year-end.

Financial highlights

• Revenue for FY2025 was A$298 million, with an average realized price of $673 USD per DMT and underlying EBITDA of A$55 million.

• Statutory NLAT of A$193 million, impacted by A$81 million non-cash inventory write-down and A$159 million depreciation/amortisation.

• Operating cash flow was breakeven; cash balance at year-end was A$156 million, rising to A$528 million pro forma after the capital raise.

• CapEx totaled A$331 million, focused on Kathleen Valley plant completion and underground development.

• H2 FY25 unit operating cost was A$800–802 per dmt sold (FOB).

Outlook and guidance

• FY2026 is a transition year: open pit mining ends in December, shifting to 100% underground operations by Q3 FY26.

• FY26 production guidance: 365–450 kdmt concentrate, with unit operating costs of A$1,060–1,295/dmt sold and capital expenditure of A$100–125 million.

• Recovery target of 70% by Q3 FY26; FY27 run rate expected at 2.8 million tons per annum.

• CapEx for FY26 and FY27 to remain elevated before declining; sustaining CapEx expected at $50–$70 million from FY28.

• Full benefits of underground mining anticipated from FY27, with lower costs and higher production.