Highlights

  • FY26 concentrate production reached 391,992 dry metric tonnes at an average lithium oxide grade of 5.1%.
  • Revenue reached AUD 639 million and underlying EBITDA was AUD 147 million.
  • Kathleen Valley completed its transition to underground-only mining.
  • FY27 concentrate production guidance is 390,000–440,000 tonnes.

Liontown Limited (ASX:LTR) operates the Kathleen Valley lithium project in Western Australia, producing spodumene concentrate for lithium chemical processing. During FY26, the company moved from open-pit operations to underground-only mining. That change placed greater importance on underground development rates, ore consistency and plant recoveries. Concentrate output totalled 391,992 dry metric tonnes at an average lithium oxide grade of 5.1%, while shipments were 381,997 tonnes. The transition changed the operating mix during the year rather than simply increasing mine output.

Financial performance and cash

Liontown Limited (ASX:LTR) reported FY26 Revenue of AUD 639 million, compared with AUD 298 million in FY25. Underlying EBITDA increased to AUD 147 million from AUD 20 million, and Operating Cash Flow was AUD 182 million. The company reported statutory net profit of AUD 93 million and underlying net profit of AUD 14 million. These are different accounting measures and should not be treated interchangeably. The June quarter generated AUD 235 million in revenue and AUD 137 million in net cash flow. Cash at bank was AUD 561 million at 30 June 2026, compared with AUD 424 million at the previous quarter-end.

Underground Mining and processing

At Kathleen Valley, Liontown Limited (ASX:LTR) mined 356,000 tonnes of underground ore in the June quarter and completed 3,316 metres of underground development, 35% more than the previous quarter. Concentrate production was 103,111 tonnes at a 5.0% lithium oxide grade, while sales reached 108,489 tonnes. Plant availability was 92%. Average lithium recovery was 63%, although recovery reached 70% while processing consistent underground ore. The difference shows why steady feed characteristics and development scheduling remain important to the operating plan.

FY27 targets and operating risks

Liontown Limited (ASX:LTR) guided to FY27 concentrate production of 390,000–440,000 tonnes and set a target underground mining run rate of 2.8 million tonnes of ore annually by the end of FY27. These figures represent management guidance and targets, not completed production. Expansion work and plant upgrades require expenditure while lithium prices remain variable. A change in realised lithium prices can affect revenue even when production volumes improve. Funding choices, project timing, plant recovery and underground ore availability remain relevant to the company’s operating outlook.

Additional operating context

Underground ore delivery is closely linked to development progress. Ore mined in one quarter is not necessarily equivalent to concentrate shipped in that quarter, because processing, inventory and shipment timing can differ. The reported quarter therefore contains separate measures for ore mined, concentrate produced and concentrate sold.

The reduction in current borrowings during FY26 was influenced by conversion of convertible notes into equity. Conversion changes the balance between Debt and issued shares; it is not the same as repaying all borrowings from operating cash. The cash position and remaining Capital requirements should be considered separately.

The distinction between reported outcomes and management targets is material: guidance depends on future operating conditions and should not be treated as an achieved result.

Key Insights

FY26 brought higher revenue and a completed underground transition, but future output depends on underground development, recovery rates and market pricing.