Highlights

  • Liontown's board approved the Kathleen Valley mine expansion to 4 million tonnes per annum on 16 September 2026, with total capital of A$389 million and completion targeted for the second half of 2028.
  • The September quarter set a record for underground development at 4,021 metres and for concentrate grade at 77,982 dry metric tonnes at 5.1% Li2O — the highest since operations commenced.
  • Liontown entered a farm-in agreement over the Centenario lithium brine project in Salta, Argentina, earning 49% for US$15 million across three tranches, with the first US$2 million already paid.
  • Cash and liquid investments were A$502.1 million at 30 September 2026, with a fully undrawn A$500 million syndicated loan facility also available.

Kathleen Valley is expanding, and Liontown (ASX:LTR) is looking beyond Australia. The board's final investment decision on 16 September 2026 for a mine expansion to 4 million tonnes per annum committed A$389 million and more than doubled the project's target processing capacity from the current 3 million tonne rate. The September quarter also set operational records on underground development and spodumene concentrate grade — the best since first production — and the company closed the quarter by signing its first international asset deal: a farm-in to a lithium brine project in Argentina that adds a different chemistry and geography to what is otherwise a single-project, single-commodity exposure.

Kathleen Valley Expansion

The board approved the expansion to 4 million tonnes per annum on 16 September 2026. Total capital is A$389 million, comprising A$276 million of direct mine and plant capital and A$113 million of indirect costs including contingency and owner's costs. The expansion adds a second ball mill and associated processing equipment, upgrades material handling systems and extends the tailings storage facility. Completion is targeted for the second half of 2028.

At the 4 Mtpa nameplate rate, the company's modelled concentrate production is approximately 700,000 dry metric tonnes per annum at full ramp-up based on reserve grade and assumed recoveries — though actual volumes will depend on ore grades, mill recoveries and operating rates that vary quarter to quarter. All-in sustaining cost for the September quarter was A$954 per tonne of concentrate, within the FY27 guidance range of A$850–1,050 per tonne. The company has not disclosed a full-year production target for the expanded operation.

September Quarter Operations

Underground development reached 4,021 metres — a record — up from 3,447 metres in the June quarter. Stoping ore mined was 568,200 tonnes at 1.42% Li2O from two underground mining contractors and Liontown's own mining team. A total of 759,900 tonnes were processed at 1.42% Li2O. Concentrate production was 77,982 dry metric tonnes at 5.1% Li2O — the highest grade achieved since operations started. Revenue for the quarter was approximately A$74 million. Cash receipts from customers were A$56 million. Realised price for shipped concentrate was approximately US$621 per tonne, up from US$541 in the June quarter. Capital spending was A$56.7 million, primarily on underground development and plant sustaining works.

Centenario Argentina Farm-In

On 30 September 2026, Liontown signed a farm-in agreement with Centenario Lithium Limited (private) over the Centenario project in the Centenario-Ratones salar complex, Salta Province, Argentina. The project covers approximately 5,700 hectares in an area of established lithium brine activity. Liontown earns a 49% interest by spending US$15 million: US$2 million already paid, US$5 million by March 2027 and US$8 million by September 2027. No resource exists on the project at the time of signing. Argentina's lithium sector carries sovereign, regulatory and operational risks distinct from Australian operations, and the farm-in represents an early-stage exploration commitment rather than a resource acquisition.

Cash and liquid investments at 30 September were A$502.1 million — A$213.8 million of cash and A$288.3 million of term deposits — providing substantial headroom for the expansion capital programme. The A$500 million syndicated loan facility remains fully undrawn. Net operating cash inflow for the quarter was A$5.2 million.