Liontown Resources has shown strong financial and operational performance in the first half of FY25. The company generated $100.4 million in sales revenue from selling 92,172 dmt at an average price of US$811 per dmt. Despite being in the ramp-up phase, they recorded positive EBITDA and maintained a strong cash position of $192.9 million as of 31 December 2024. Net cash from operating activities for the December quarter was $16.7 million, although the company reported a net loss before tax of $15.2 million due to ramp-up and commissioning costs.
Operationally, the Kathleen Valley Lithium Operation has been progressing well, achieving commercial production from 1 January 2025. The plant’s availability averaged 84%, with lithia recovery improving to 59% in December. Underground development is on track, with key infrastructure in place for ramp-up. Stockpile management has been robust, with significant reserves to support the transition to underground production.
The outlook for lithium demand remains positive, driven by the rapid growth of electric vehicles and energy storage systems. The long-term market forecast shows a strong compound annual growth rate of 10% through 2035. Liontown’s strategy is focused on optimizing costs, improving recovery rates, and efficiently transitioning to underground production.
Overall, the investment outlook for Liontown Resources appears solid. While short-term losses are linked to ramp-up activities, the company is well-positioned for long-term growth given the strong demand for lithium and strategic operational planning.
LTR Price at posting:
65.5¢ Sentiment: Hold Disclosure: Held
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