Liontown working its way out of the red 

Liontown (ASX: LTR) is nearing a break-even point as the miner ramps up its underground production and with the open pit nearing completion at its Kathleen Valley operations.  

The underground operations achieved a 1mtpa run-rate in September, six months after first stoping. 225kt of underground ore was mined in Q1 FY26, marking a 105% increase from Q4 FY25.  

Liontown also saw a 77% increase in open pit ore mined for the quarter with a total of 292kt mined at a weighted average grade of 1.3% lithium oxide. 

Liontown managing director and chief executive Tony Ottaviano says the company is entering the next phase at Kathleen Valley.  

“As cleaner underground ore increasingly feeds the mill, recoveries will improve and we remain on track to meet our 70% lithia recovery target by the end of Q3 FY26,” he said. 

“We’ve laid the foundations through FY25 and the early part of FY26. The focus from here is on continued execution, cost discipline, and unlocking the full performance of the Kathleen Valley operation.” 

Operating costs for Q1 were $1093/t of lithium produced while average realised price was $1067 (US$700), 5% lower than Q4 FY25. 

Revenue was down 29% from the prior quarter. Liontown cites lower sales volumes due to port congestion and ‘backward-looking pricing formulas’. 

“The September quarter was one of execution and delivery against the expectations we set ourselves and disclosed to the market,” Mr Ottaviano said. 

“Underground production continued to ramp up to plan, with our key operating milestones achieved. 

“The capital raising and Ford debt facility and offtake amendments fortified our balance sheet and provided strategic flexibility, positioning Liontown strongly for the next phase of this transition year. 

“Our process plant continues to perform strongly, consistently producing saleable concentrate while handling variable OSP feed, including material with up to 40% gabbro content. The performance underscores the strength of the flowsheet design and capability in our operations team.”