Highlights

  • Liontown’s share price fell 6.06% to AUD 1.70 on 27 February 2026
  • On 26 Feb, the company announced the cessation of LG Energy Solution as a substantial shareholder.
  • Quarterly revenue surged 91% QoQ to AUD 130 million, driven by sales of 112,122 dmt of lithium concentrate.
  • Operating cash flow reached a neutral position amid a 17% reduction in unit operating costs and increased underground ore mining.

Liontown Ltd (ASX:LTR), a leading lithium producer, experienced a 6.06% share price decline on 27 February 2026, closing at AUD 1.70. This movement might follow the previous day’s announcement that LG Energy Solution Ltd (LGES) ceased to be a substantial shareholder after off-market block trade transactions.

Substantial Shareholder Exit Triggers Market Movement

On 26 February 2026, Liontown disclosed that LG Energy Solution, a significant investor, had reduced its holding by selling approximately 239 million ordinary shares at AUD 1.77 per share through a block trade. This exit marks a notable change in Liontown’s shareholder structure. The announcement caused a marked share price reaction, with the stock falling sharply during the trading session the following day.

Quarterly Performance: Revenue and Cost Improvements

Looking at the latest financial figures released by LTR, in December 2025 quarter, the company reported a 91% quarter-on-quarter increase in revenue, reaching AUD 130 million, driven by six parcels sold totaling 112,122 dry metric tonnes (dmt) of lithium concentrate. The company reported a 17% reduction in unit operating costs to AUD 910 per dmt (FOB), and all-in sustaining costs (AISC) improved 22% to AUD 1,059 per dmt (FOB). Operating cash flow reached a neutral position, showing a significant turnaround from previous quarters.

Production Growth and Strategic Milestones

Production metrics also showed progress with concentrate production rising 21% quarter-on-quarter to 105,342 dmt at an average grade of 5.1% lithium oxide (Li₂O). Underground ore mined increased 37% to 308,000 tonnes. The transition from open pit to fully underground operations was completed, with Kathleen’s Corner open pit concluding in December, exceeding production targets. Liontown aims to ramp up underground mining to 1.5 million tonnes per annum (Mtpa) by Q3 FY26 and achieve steady-state production of 2.8 Mtpa by the end of FY27.

Market Position and Offtake Agreements

The company closed its inaugural spodumene auction at US$1,254 per dmt SC6, demonstrating robust market demand. However, realized prices for sales in the quarter were approximately US$900 per dmt, reflecting earlier contractual pricing. Additionally, Liontown secured a binding offtake agreement with Canmax for 150,000 wet metric tonnes (wmt) per annum for calendar years 2027 and 2028.

While the recent substantial shareholder exit caused a notable share price decline, Liontown’s quarterly financial and operational results display progress in cost control, production growth, and market positioning. The company continues to execute its underground transition strategy and capitalize on improving lithium market conditions, maintaining a strong cash position of AUD 390 million at quarter-end.

FAQ

Q1: Why did Liontown’s share price drop on 27 February 2026?
A1: The share price declined following the announcement that LG Energy Solution ceased to be a substantial shareholder after selling a large block of shares.

Q2: How did Liontown perform financially in the December quarter?
A2: Liontown reported a 91% increase in quarterly revenue to AUD 130 million and achieved neutral operating cash flow with reduced unit costs.

Q3: What are Liontown’s production targets for FY26 and FY27?
A3: The company targets 1.5 million tonnes per annum of underground ore mining by Q3 FY26 and 2.8 Mtpa steady-state production by the end of FY27.