Liontown Resources Limited

Revenue was $68 million, down 29% quarter-on-quarter, mainly because of lower shipping volumes from port congestion and backward-looking pricing. Production was 87,000 tonnes at a weighted average grade of 5%, contract sales were 77,000 tonnes, plant processed 580,000 tonnes at 92% availability, and recovery was 59%. Unit operating costs rose 22% to $1,093 per dry metric tonne sold and all-in sustaining costs rose 10% to $1,154 per tonne. Operating cash flow was negative $44 million, capital expenditure was $44 million, financing inflows were $363 million from the August equity raise, and closing cash was $420 million. Guidance remained unchanged: around 70% recovery by March 2026/Q3 FY26, open pit completion in the December quarter, and 100% underground production by Q3 FY26.

Tony Ottaviano framed the quarter as disciplined execution through the low point of a planned transition year, saying the company delivered what it said it would. He emphasized that underground ramp-up, plant performance, and balance sheet strength all moved according to plan, and that the improvement path from here is visible as cleaner underground ore becomes the dominant feed. His tone was confident but pragmatic, repeatedly stressing that the business is in a staged transition rather than an immediate steady-state phase.

Graeme Pettit said the quarter’s financial results were consistent with expectations and reflected planned maintenance and the OSP strategy. He cited $68 million of revenue, a 29% quarter-on-quarter decline, unit operating costs of $1,093 per dry metric tonne sold, AISC of $1,154 per tonne, negative operating cash flow of $44 million, capital expenditure of $44 million, and closing cash of $420 million. He also noted $363 million of net financing inflows from the August capital raise, the Ford facility repayment deferral for 12 months, and said capex should ease as TSF construction is complete and open pit mining ends in the December quarter.

Analysts focused on realized pricing, cost split between open pit and underground, port congestion, concentrate grade, and the pace of contract repricing. Management said the pricing lag was a timing issue: last quarter benefited from favorable realization, while this quarter absorbed the catch-up from May/June prices in the 600s versus the 900s currently, and they did not suggest the lag disappears entirely. On operations, they said port congestion at Geraldton was seasonally worse and should ease, while the 5% concentrate grade reflected higher gabbro/OSP material and should trend back toward 5.2% as cleaner underground ore becomes dominant.