Highlights

  • Liontown completed open pit mining and transitioned to 100% underground operations during the quarter.
  • Underground ore production increased 37% quarter-on-quarter, supporting higher grades and recoveries.
  • Revenue rose 91% quarter-on-quarter as sales volumes and realised prices improved.

Liontown Limited (ASX:LTR) reported its December Quarter FY26 results on 29 January 2026, marking the completion of open pit mining at its Kathleen Valley Lithium Operation and the transition to fully underground mining. Open pit activities concluded in December 2025, delivered in line with schedule after approximately three years of operations. Over the life of the open pit, 4.2 million tonnes of ore were mined, with total material movement of 37.9 million tonnes.

During the quarter, underground ore mined increased to 308 kilotonnes, representing a 37% increase from the September quarter. The underground operation achieved an annualised run-rate of approximately 1 million tonnes per annum, with development advancing across multiple levels. Average underground mined grade during the quarter was approximately 1.4% Li₂O, consistent with the geological model.

Processing Performance Through Feed Changeover
Processing operations continued through a planned transition in mill feed composition as open pit mining wound down and underground ore volumes increased. Total ore processed during the quarter was 642 kilotonnes, up 11% quarter-on-quarter, at an average feed grade of 1.3% Li₂O. Plant availability averaged 92% during the period.

Lithia recovery improved to 63%, compared with 59% in the prior quarter.

The recovery outcome reflected feed sequencing strategies and circuit optimisation, while open pit ore continued to form part of the blended feed. Liontown indicated a line of sight to a 70% recovery target as underground ore becomes the dominant feed source.

Sales Volumes and Cost Metrics Shift
Concentrate production reached 105 thousand dry metric tonnes (dmt), a 21% increase from the previous quarter. Sales volumes rose 45% quarter-on-quarter to 112 thousand dmt. The average realised sales price was USD 900 per dmt, reflecting contractual pricing structures and quotation period timing.

Revenue for the quarter totalled AUD 130 million, compared with AUD 68 million in the prior quarter. Unit operating costs on a free-on-board basis declined to AUD 910 per dmt sold, down 17% quarter-on-quarter. All-in sustaining costs decreased to AUD 1,059 per dmt sold, reflecting lower open pit mining activity and reduced sustaining capital expenditure.

Cash Position and Capital Deployment
Liontown ended the quarter with a cash balance of AUD 390 million. Operating cash flows were neutral during the period, with customer receipts of AUD 128 million offset by production costs, capital expenditure, and lease-related payments. Capital expenditure totalled AUD 24 million, primarily associated with underground mine development and supporting infrastructure.

Share Performance
LTR shares traded at AUD 2.04, down 4.91%, during trading on 29 January.