The Liontown Ltd (ASX: LTR) shares are in focus today as the company reported a 91% jump in quarterly revenue to $130 million and a 17% fall in unit operating costs, reflecting lower costs and a transition to full underground mining.
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What did Liontown report?
- Revenue up 91% quarter-on-quarter to $130 million from six concentrate parcels sold
- Unit operating costs (FOB) down 17% to $910/dmt; all-in sustaining cost down 22% to $1,059/dmt
- Operating cash flow improved to near break-even, with $390 million cash at quarter end
- Concentrate production increased 21% to 105,342 dmt at an average grade of 5.1% Li2O
- Underground ore mined up 37% to 308 kt, marking full transition to 100% underground operations
- New binding offtake signed with Canmax for 150,000 wmt per year from 2027
What else do investors need to know?
Liontown marked a key milestone by completing open pit mining at Kathleen's Corner, positioning its Kathleen Valley operation as fully underground. Underground ramp-up is continuing as planned, targeting 1.5 million tonnes per annum by the end of Q3 FY26 and 2.8 Mtpa steady-state by end FY27.
A highlight was the company's first successful spodumene spot auction in November, which closed at US$1,254/dmt SC6, pointing to strong buyer demand and a favourable price discovery mechanism.
Liontown ended the period with solid liquidity: $390 million in cash and 13,800 dmt of saleable concentrate on hand. Production cash flow was almost neutral for the quarter, with improving sales volumes and prices helping offset costs.
What did Liontown management say?
Tony Ottaviano, Managing Director and CEO
The December Quarter represented a major operational and financial inflection point for Liontown, with open pit mining completed on schedule and the operation now 100% underground. Underground ore production increased by 37% during the quarter, supported by strong development progress and improving operational leverage, resulting in cashflow-neutral operations. Our US$900 / dmt realised price for the quarter, on an SC6 equivalent basis, reflects the timing of offtake pricing, which was largely set prior to the strong rally in spodumene prices late in the quarter. Pricing strength has continued into 2026, with market conditions now the most favourable experienced since the commencement of production. With underground production continuing to scale, costs trending lower and higher pricing expected to flow through in coming quarters, Liontown is well positioned to deliver a strong financial performance in the second half of FY26.
What's next for Liontown?
Liontown remains on track to meet its FY26 guidance, with the underground ramp-up expected to deliver lower costs and higher production. Management expects rising spodumene prices from late 2025 to flow through to realised prices in coming quarters, supporting stronger margins.
The company is refreshing its expansion study for a potential 4Mtpa pathway at Kathleen Valley, assessing options for staged growth with a decision contingent on sustained market recovery. Liontown also continues to focus on optimisation initiatives now embedded as routine operations.
Liontown share price snapshot
Over the past 12 months, Liontown shares have soared 213% outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
