Liontown Resources books $15.2m loss after Kathleen Valley starts first lithium production
One-time market darling Liontown Resources has reported a half-year loss of $15.2 million as Australia’s latest lithium debutant start its first full quarter of commercial production in the northern Goldfields.
The Tim Goyder-chaired miner on Friday said it shipped 100,240 tonnes of spodumene concentrate in the six months to the end of December after turning out first production from Kathleen Valley near Leinster in late July last year.
It achieved an average realised price of $US811/t to bring in revenue of just over $100m.
“Ramp-up of the Kathleen Valley processing plant and production has continually progressed in alignment with, and in some cases exceeded, expectations,” Liontown said.
“As a result, the company’s board approved the declaration of commercial production at the Kathleen Valley processing plant with effect from 1 January 2025.”
Liontown revealed in November it would scale back production plans just three months after it deliver its maiden load of lithium to preserve cash as it waits out a depressed market that shows few signs of a sustained rebound in prices.
It is targeting an annual production rate of 2.8 million tonnes from the end of the 2026/27 financial year — down from an initial ramp up target of 3mtpa.
Liontown reported underlying earnings before interest, tax, depreciation and amortisation of $66m for the half.
It closed the period with net debt of $505m and $192.9m in cash.
Shares in Liontown, which counts mining magnate and Australia’s richest person Gina Rinehart as its biggest shareholder, jumped 4.9 per cent in early trade to 64¢ — up almost 13 per cent for the year but off 53 per cent for the past 12 months.
Macqaurie said the half-year loss was both better than expected, largely driven due to positive fair value movement on derivative liabilities and lower income expenses.
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