Liontown sets its sights on long-term lithium

Liontown Resources (ASX: LTR) has updated its Kathleen Valley production guidance for H2 FY25 in an attempt to better adapt to a low-price lithium environment.

The company’s revised mine plan is designed to deliver 2.8mtpa production rate from the end of FY27, with a focus on high margin tonnes and expected reduction in development and fixed costs.

Liontown managing director and chief executive Tony Ottaviano says when market conditions change, companies need to quickly adapt to meet the market.

“Through the business optimisation work done by our team, the revised mine plan and guidance demonstrates our responsiveness to the low-price environment,” he said.

“Our decision to mine underground affords Liontown the flexibility to target high margin areas of our tier 1 resource and scale our operations to meet the market, including preserving the ability to pursue expansion when the market recovers.

“Our goal is to ensure long-term value for our shareholders by leveraging the quality of our assets to meet strong long-term demand for lithium.”

Liontown says FY26 is the transition year from open pit to underground production, which will impact unit costs.