The Liontown Ltd (ASX: LTR) share price was in focus today after the company reported a record $137 million net cash flow for the June quarter, lifting its cash balance to $561 million, and strong underground mining progress building towards future production growth.
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What did Liontown report?
- Net cash flow of $137 million for the quarter
- Quarter-end cash at bank of $561 million, up from $424 million
- Revenue of $235 million from sales of 108,489 dmt spodumene concentrate
- 103,111 dmt spodumene concentrate produced, at a 5.0% Li2O average grade
- Underground development of 3,316 metres (a 35% increase quarter on quarter)
- FY26 production and cost guidance met across all metrics
What else do investors need to know?
The June quarter saw mining development accelerate as Liontown prepares for a step up in production. The underground operation delivered its strongest quarterly performance yet, with 356 kilotons of ore mined and development metres reaching new highs. This positions the company to achieve its target 2.8 Mtpa ore mining run rate by the end of FY27.
Operationally, the Kathleen Valley process plant achieved 92% availability, and lithium recovery averaged 63%, rising to 70% when processing consistent underground ore. Liontown is continuing to refine ore blends and trial methods to enhance recoveries and plant performance.
On the corporate front, expansion plans at Kathleen Valley are progressing, with key early works and engineering underway and a Final Investment Decision for expansion expected by the end of Q1 FY27. The company maintains a strong focus on optimisation and cost control as it prepares for future growth.
What did Liontown management say?
Managing Director & CEO Tony Ottaviano said:
I'm pleased to announce to our shareholders that following a record $137 million of net cash flow, Liontown now holds more than half a billion dollars in cash. It confirms what we have said about this operation and this market.
We have confidence in our operational plan, and our team delivered 3,316 development metres this quarter, which is a record for the Company. This is the development that opens the ore access we need to step up to our 2.8 Mtpa mining run-rate by the end of FY27.
Six months ago, our discipline was focused on building balance-sheet strength. Today, that same discipline is directed at value-accretive growth. We have the financial strength and the market to pursue what comes next.
What's next for Liontown?
Looking ahead, Liontown will continue to ramp up underground mining, with further increases in development planned in FY27 to set the stage for its ambitious production targets. FY27 production guidance is 390–440 kilotonnes of spodumene concentrate, and investment will remain elevated as expansion construction and plant upgrades proceed.
A Final Investment Decision on the Kathleen Valley expansion is due by the end of Q1 FY27, positioning Liontown to lift production as lithium market conditions stabilise. The company plans to maintain a strong balance sheet, optimise operating costs, and support ongoing engagement with stakeholders and the local community.
Liontown share price snapshot
Over the past 12 months, Liontown shares have risen 44%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.
