Liontown well-positioned as underground transition completes, costs decline and lithium market improves

The December Quarter marked a key operational and financial inflection point for Liontown, with the successful transition to fully underground operations, delivering lower unit costs and cashflow-neutral operating activities, while remaining on track to meet FY26 guidance.

Highlights:

Financial Performance

• Revenue up 91% quarter-on-quarter (QoQ) to A$130 million from six parcels sold totalling 112,122 dmt
• Unit operating costs reduced 17% QoQ to A$910/dmt (FOB); AISC improved 22% to A$1,059/dmt (FOB)
• Operating cash flow neutral, materially improved from prior period
• A$390 million cash at quarter-end with 13,800 dmt saleable inventory on hand

Production Growth

• Concentrate production increased 21% QoQ to 105,342 dmt at an average grade of 5.1% Li₂O
• Underground ore mined up 37% QoQ to 308 kt

Strategic Milestones

• Kathleen’s Corner Open Pit completed on schedule in December, exceeding production targets; Kathleen Valley now a 100% underground operation
• Underground ramp-up on track: targeting 1.5 Mtpa by end Q3 FY26 and 2.8 Mtpa steady-state by end FY27
• Inaugural spodumene auction closed at US$1,254/dmt SC6, validating price discovery mechanism
• New binding offtake executed with Canmax for 150,000 wmt per annum in CY2027 and CY2028

Market Positioning

• Realised price of US$900/dmt sold reflects contractual pricing set prior to Q4 CY25 price rally
• Inaugural spot market auction in November closed at US$1,254 / dmt SC6 for a January cargo, demonstrating strong buyer demand