Record cashflow for Liontown

Despite a 9% quarter-on-quarter decrease in lithium prices, Liontown (ASX: LTR) has delivered strong results for Q4 FY25, closing out its first year with positive cash flow of $23m.

The company produced more than 300,000t of spodumene concentrate in its first 11 months of operation, showcasing the successful design and ramp up of the Kathleen Valley processing plant.

This marks the company’s third consecutive quarter of positive operating cash flows, achieved in a low-price environment.

Open pit mining remains on schedule for completion in December this year, with access to the final major ore zone expected for Q2 FY26.

In Q4 FY25, the process plant saw record performance, with more than 95% availability and concentrate quality maintained while processing stockpiles of low-grade ore. 85,892mt of spodumene concentrate was produced at an average grade of 5.2% and 97,330mt was sold across six parcels generating revenue of $96m.

Liontown managing director and chief executive Tony Ottaviano says it is a strong finish to the company’s first year of operations.

“This performance, along with sale proceeds received of $109m for Q4, underpins a strong cash balance of $156m,” he said.

“With lithium prices falling 24% during the quarter, our strategy to process stockpiles enabled us to preserve cash and maintain a strong cash balance at year end.”

At the processing plant, fragmentation, dilution and recovery are all better than expected. Key enabling infrastructure, including the paste plant and the main ventilation shafts, are now fully constructed.

“We remain firmly on track for 100% underground production and 70% recovery target in Q3 FY26,” Mr Ottaviano said.

Liontown enters FY26 focused on transitioning to Australia’s first fully underground lithium operation and unlocking long-term value through continued cost and capital optimisation while maintaining expansion optionality.