Kathleen Valley’s first year results in $193m loss for Liontown 

Liontown Resources (ASX: LTR) posted a $193m loss for FY25 in the company’s first year of operations at the Kathleen Valley lithium mine in WA. 

The statutory net loss after profit includes an $81m non-cash write-down of ore sorting potential (OSP) stockpiles, foreshadowed in the June quarter results. 

Liontown managing director and chief executive Tony Ottaviano comments on the loss. 

“While we reported a statutory loss, this was expected in a commissioning year and reflects depreciation and the treatment of stockpiles built up during ramp-up,” he said. 

“What matters is that the underlying performance was positive and cash neutral. 

“Our balance sheet was further strengthened with the equity raising completed after year-end, taking pro forma cash to $528m and ensuring we are funded for the transition to underground operations.” 

Despite a weak lithium price environment in FY25, Liontown reported revenue of $298m and positive earnings before interest, taxes, depreciation and amortisation of $55m. 

Production was strong, with 295,000dmt of concentrate produced in 11 months, including a six-month ramp-up. 

Mr Ottaviano says FY26 will be a transition year, a “tale of two halves”, with elevated unit costs as the miner runs dual open pit and underground operations and process OSP material in the first half resulting in lower recoveries, production and sales.  

“We expect to see recoveries improving in the second half to reach the [about] 70% target by Q3 FY26 as we process predominantly higher-grade underground ore,” he said. 

“From FY27, we expect to realise the full benefits of underground mining, positioning Liontown as a globally significant, sustainable supplier of lithium.”