Highlights

  • Liontown approved A$389m for the Kathleen Valley expansion in September 2026.
  • September-quarter revenue totalled A$199m.
  • Concentrate production was 77,982 dry metric tonnes for the quarter.
  • Cash at 30 September 2026 was A$502.1m.
  • FY27 guidance covers production, costs and capital expenditure.

Liontown Limited (ASX:LTR) produces spodumene concentrate from its Kathleen Valley underground lithium operation in Western Australia and is developing additional battery-minerals opportunities. The September 2026 quarterly report combined an approved A$389m expansion programme with production, revenue and cash-flow figures, providing an update on both current operations and planned capacity growth.

The Kathleen Valley Expansion Decision

In September 2026, ASX:LTR approved an A$389m expansion of Kathleen Valley, allocating A$145m to mining and A$244m to processing and other infrastructure. The plan aims to lift underground mining to approximately 4.1 million tonnes annually and processing capacity from 2.8 million to 4.2 million tonnes per year.

Management has described a steady-state production target of approximately 780,000 dry metric tonnes of spodumene concentrate annually from FY30, on a five-year average SC5.4 basis. The schedule includes further underground development and processing infrastructure, with practical completion targeted for the end of the second quarter of FY29. These remain company targets rather than completed capacity.

Quarterly Production and Revenue

Liontown (ASX:LTR) produced 77,982 dry metric tonnes of concentrate in the September 2026 quarter, compared with 103,111 tonnes in the preceding quarter. It sold 82,561 dry metric tonnes and recognised A$199m in revenue. Quarterly plant availability was 94%, while metallurgical recovery declined to 60% from 63%, with the company identifying contamination in open-pit stockpile feed as a factor.

The realised price was US$1,966 per tonne on an SC6e basis, versus US$1,880 previously. Unit operating costs were A$1,259 per tonne sold, free on board, versus A$995 in the June quarter. ASX:LTR also recorded 4,021 metres of underground development, reflecting continued mining activity despite the lower concentrate tonnage.

Cash, Guidance and Project Exposure

ASX:LTR ended 30 September 2026 with A$502.1m cash. Receipts from customers were A$193.1m and reported operating cash inflow was A$46.6m. Investing cash outflow was A$81.7m, while financing outflow was A$23.2m. Reported total loan facilities of A$301.9m were fully drawn.

For FY27, Liontown provided concentrate production guidance of 390,000–440,000 dry metric tonnes on an SC5.1 basis, unit operating costs of A$1,050–1,250 and capital expenditure of A$435–495m. It also advanced a staged farm-in at the Centenario lithium brine project in Argentina during September 2026. The stated production and spending ranges are company guidance, subject to operating and development conditions.

Key Insights

Liontown (ASX:LTR) is balancing underground production and costs with a multi-year expansion at Kathleen Valley. The September-quarter cash position is material to the scale of planned expenditure, while recovery rates, mine development and project execution remain important operating variables. The expansion target should be distinguished from current productive capacity.