Liontown Resources (ASX:LTR) has reported a record $23 million in positive operating cash flow for the June quarter, marking its first full year of operations. This milestone was achieved even as lithium prices experienced a 24 per cent decline during the same period. The company, which is focused on the exploration and development of lithium deposits, is advancing its flagship Kathleen Valley project. Liontown aims to be a leading provider of battery materials for the global clean energy market.
The company’s annual production exceeded 300,000 wet metric tonnes of spodumene concentrate, generating $301 million in revenue. Liontown’s cash balance stands at $156 million, supported by $109 million in sales receipts during the quarter. Underground mining at the Kathleen Valley lithium project is progressing on schedule, with stoping activities commencing in April. Key infrastructure developments, including the paste plant and ventilation shafts, are now complete.
Liontown remains on course to become Australia’s first fully underground lithium operation. Despite a 9 per cent decrease in the average realised price per tonne, the company has maintained its cost and recovery guidance. A cost-saving program yielded $112 million in savings, surpassing its initial target of $100 million.
Looking ahead, Liontown anticipates finalising its transition to underground mining in FY26. The company projects achieving a 70 per cent recovery rate by the third quarter of the same financial year, enhancing operational efficiency and output.
