Kathleen Valley lithium activities report

Liontown (ASX: LTR) shares its quarterly activities report as ramp up continues to deliver strong performance at its Kathleen Valley lithium operations in WA.

Production, cost and shipments performed well in line with expectations, with four shipments departing the port of Geraldton totalling 81,34dmt of spodumene concentrate, resulting in net cash from operating activities of $16.7m and $192.9m.

The milestone of first cargo to long-term foundational customer LG Energy Solution (ASX: LGI) was achieved with the balance of shipments made to existing offtake customers and spot sale clientele.

Sales revenue of $89.8m was recognised during the quarter with saleable concentrate inventories standing at almost 25kt.

Open pit mining operations moved a total of 2.6mt of material, including clean ore, ore sorted product (OSP) and waste, with clean ore delivered to the run of mine (ROM) averaging a grade of 1.26% of lithium.

Underground mining achieved a record 1,902m developed at an average rate of 317m per jumbo per month, reporting first stoping ore is on schedule for Q4 FY25.

Liontown issued guidance of an expected $775 – 855/dmt spodumene concentrate six equivalent basis (SC6e) sold for unit operating costs (free on board) for H2 FY25 driven by business optimisation work. As ramp up progresses, unit operating costs and all-in sustaining costs (AISC) are expected to normalise as fixed costs get diluted by increased volumes.

Cash and trade receivables were $205m with a further 24,904dmt of saleable concentrate inventory, demonstrating the company’s operating discipline and capacity to generate $16.7m net cash from operating activities in the initial phases of production ramp up.

Overall, Kathleen Valley continues to deliver effective performance, achieving positive net cashflow and is on track with expectations.