Balanced Update – Liontown Resources (LTR) Production Update

*** GENERAL ADVICE ONLY***

Liontown Resources has released its December Quarter 2024 production report, highlighting strong performance at its Kathleen Valley Operation. 

Highlights

• Production:
  • Spodumene concentrate: 88,683 dmt produced with a 5.2% Li2O weighted average grade.
  • Tantalite: First production of 246 dmt.
• Mining:
  • Ore mined: 1.17 Mt (open pit and underground).
  • Total material mined: 2.8 Mt.
  • Underground development: 1,902 meters for the quarter, totaling 7,254 meters since November 2023.

Plant Performance

• Processing:
  • 619 kdmt of ore processed in the quarter, achieving an annualized run rate of ~2.4 Mtpa.
  • SAG mill availability averaged 89%, peaking at 92% in December.
  • Lithia recovery improved from 45% in Q1 FY25 to 55% in Q2 FY25, reaching 59% in December.
• Production achievements:
  • Spodumene production reached 36,368 dmt in December, the highest monthly output to date.

Sales

• Spodumene shipped: 81,341 dmt at an average realized price of US$806 per dmt SC6e.
• Tantalite shipments: Successfully commenced.
• Customer engagement: First shipment delivered to LG Energy Solution and commercial production initiated with the second long-term offtake partner.

Financial Performance

• Revenue: $89.8 million for the quarter.
• Operating cash flow: $16.7 million net from operating activities; $11.5 million adjusted after capitalized operating expenses.
• Capital expenditure: $45 million for Kathleen Valley Project construction costs, with $11 million remaining for H2 FY25.
• Cash position: $192.9 million at the end of December 2024, supplemented by $11.9 million in January 2025 for a late December shipment.

Mining Metrics

• Ore grades: Average Li2O grade improved to 1.3% (open pit).
• Stockpiles: ROM clean ore at 613 kt and OSP stockpile at 599 kt, a significant increase from Q1 FY25.

Operational Efficiency

• Unit operating costs: A$1,000/SC6e dmt sold; AISC of A$1,170/SC6e dmt (US$763/SC6e).
• Safety: LTIFR of 0.66 and TRIFR of 4.59, indicating continued focus on ESG standards.

Key Takeaways

• Record performance in mining and plant output during the ramp-up phase.
• Positive financial results with strong revenue growth and cash flow generation.
• Ongoing focus on ESG priorities and safety metrics.