Liontown (LTR) Q1 2025 earnings summary

Executive summary

• Achieved first spodumene concentrate production and inaugural shipment, joining global lithium producers and marking a successful transition from explorer to producer.

• Ramp-up phase progressing as planned, with strong throughput, improving recoveries, and key operational metrics met or exceeded.

• Safety and ESG performance remain strong, with LTIFR at 0.32, TRIFR at 5.68, and 86% renewable energy penetration.

• Workforce exceeds 320 employees, with female participation at 21%, meeting industry standards.

• Secured US$250 million (A$372 million) in convertible notes from LG Energy Solution, supporting ramp-up and working capital.

Financial highlights

• Ended the quarter with A$263.1 million in cash, up from A$122.9 million, bolstered by convertible note proceeds.

• Operating outflows of A$52 million for the quarter, with A$29 million in capital spend for mining operations.

• A$81 million spent to reach first output at Kathleen Valley, plus A$69 million for additional capital, mainly the paste plant.

• Net cash used in operating activities was A$48.9 million; investing activities used A$179.2 million, mainly for project development.

• Financing activities provided A$368.2 million, primarily from LG Energy Solution convertible notes.

Outlook and guidance

• Steady-state operations expected by end of Q1 CY2025, with normalization of operating and capital cashflows.

• Mine plan optimization and cost update to be provided by year-end, with flexibility to expand when lithium prices improve.

• Ramp-up to nameplate throughput targeted within 8 months from startup, with recovery curve expected to reach targets in 15-18 months.

• Commercial production to be declared on a customer-by-customer basis as readiness is achieved.

• Strategic focus on cost discipline and operational efficiency to position for long-term value.