Highlights

  • Liontown approved AUD 389 million for the Kathleen Valley expansion.
  • September concentrate production fell to 77,982 dry metric tonnes.
  • Underground development reached a record 4,021 metres during the quarter.
  • A first portal at Kathleen’s Corner was blasted in November 2026.

Liontown Limited (ASX:LTR) produces spodumene concentrate at the Kathleen Valley lithium operation in Western Australia and is pursuing a staged interest in the Centenario brine exploration project in Argentina. Its September 2026 quarter combined a transition to underground ore Supply with approval of a larger processing configuration. Management’s future production targets must be distinguished from the concentrate currently manufactured and sold.

Expansion Approval Sets Out Longer-Term Targets

On 30 September 2026, Liontown Limited (ASX:LTR) approved the Kathleen Valley Expansion with planned Capital Expenditure of AUD 389 million over FY27 to FY29. The project is designed to raise processing capacity from approximately 2.8 million to 4.2 million tonnes per annum. The stated target is an average of about 780,000 dry metric tonnes of concentrate annually at 5.4% lithia during FY30 to FY34. A corresponding steady-state unit-cost target is about AUD 880 per dry metric tonne. These are company targets dependent on construction, Mining development, processing recovery and market conditions, rather than production already achieved.

September Production and Unit Costs

Liontown Limited (ASX:LTR) produced 77,982 dry metric tonnes of spodumene concentrate in the three months to 30 September 2026, compared with 103,111 tonnes in the June quarter. Sales declined to 82,561 tonnes from 108,489 tonnes. September-quarter Revenue was AUD 199 million, versus AUD 235 million previously, while the realised SC6-equivalent selling price rose to USD 1,966 per tonne from USD 1,880. Free-on-board operating costs increased to AUD 1,259 per tonne sold, compared with AUD 995. Lower plant throughput and reduced recovery affected fixed-cost absorption. Lithia recovery fell to 60% from 63%, with variable feed from remaining open-pit stockpiles contributing to processing difficulties.

Underground Development and Cash Position

Underground ore mined reached 388,568 tonnes during the September quarter and development advanced a record 4,021 metres. The plant processed 508,000 dry metric tonnes of ore as operations aligned processing with available underground feed. Liontown Limited (ASX:LTR) ended September with approximately AUD 502 million in cash, compared with AUD 561 million at June’s end. Underlying Operating Cash Flow was around AUD 69 million, while reported operating cash flow was about AUD 47 million after a one-off customer settlement. This distinction is important when interpreting the quarter’s underlying cash generation.

New Portal and FY27 Delivery Priorities

In November 2026, the company confirmed the first of three new underground portals had been blasted at Kathleen’s Corner. The opening is an early development milestone, not completion of the expansion. Liontown Limited (ASX:LTR) maintained its FY27 concentrate production guidance of 390,000 to 440,000 dry metric tonnes and unit operating costs of AUD 1,050 to AUD 1,250 per tonne sold. Total FY27 capital expenditure guidance was AUD 435 million to AUD 495 million, incorporating expansion spending. Achieving these ranges depends on increasing underground mining rates, stable plant performance and execution of the approved capital programme.

Key Insights

Liontown Limited (ASX:LTR) is expanding Kathleen Valley while working through lower concentrate output and higher unit costs in the September quarter. The record underground development advance and first Kathleen’s Corner portal represent measurable progress, but the larger FY30 production objective remains contingent on several years of successful delivery.