Liontown (LTR) Q2 2025 earnings summary

Executive summary

• Ramp-up at Kathleen Valley delivered strong operational and financial results, with 88,700 dmt of spodumene concentrate produced and 81,341 dmt shipped at a 5.2% Li₂O grade in Q2 FY25, including first sales to LG Energy Solution and regular tantalum shipments.

• Net cash from operating activities was $16.7 million, with a cash balance of $192.9 million at 31 December 2024 and $11.9 million received post quarter-end.

• Revenue for the quarter was $89.8 million from sales of 81,341 dmt of spodumene concentrate.

• Record mining and processing output, with ramp-up meeting or exceeding plan, and strong ESG performance including LTIFR of 0.66 and 82% renewable power usage.

• Guidance for H2 FY25 maintained, with $5 million project capital deferred from H1 to H2.

Financial highlights

• Sales revenue for the quarter was $89.8 million, with an average realised price of US$806/dmt SC6e.

• Unit operating costs were A$1,000 (US$652) per dmt SC6e sold; AISC was A$1,170 (US$763) per dmt SC6e sold.

• Cash and trade receivables totaled $205.0 million, with 24,904 dmt of saleable concentrate inventory.

• Adjusted net cash from operating activities, excluding capitalised commissioning costs, was $11.5 million.

• Capital expenditure for the quarter was $45 million, with $11 million remaining for H2 FY25.

Outlook and guidance

• H2 FY25 unit operating cost guidance is $775–855 per dmt SC6e (FOB), reflecting ongoing business optimisation.

• Targeting a plant recovery rate of 70% by Q3 FY26, with ongoing optimisation of grade and recovery.

• Underground stoping production is on schedule for Q4 FY25, with full transition to underground mining in FY26.

• The revised mine plan targets 2.8Mtpa production by end FY27, prioritising higher-margin tonnes and cost reductions.

• Strong customer demand and a tight forward sales book for FY25 and beyond.