Liontown Resources Ltd on Tuesday reported its maiden underlying profit for the fiscal year ended June 30, 2026, as record revenue and higher lithium prices offset rising operating costs and a shift to underground mining.
The Australian miner posted underlying net profit after tax of AUD 14 million, compared with a loss in the prior year, while total NPAT reached AUD 93 million after recognizing deferred tax assets. Revenue jumped 113% to AUD 639 million from AUD 300 million in FY 2025, supported by a 75% increase in the average realized price for spodumene concentrate to US$1,379 per ton.
Spodumene spot prices climbed from US$630 per ton at the end of June 2025 to US$2,210 per ton a year later, a 251% increase. Shipments rose 35% to 382,000 tons, while concentrate production totaled 392,000 tons at an average grade of 5.1%. Underlying EBITDA surged to AUD 147 million from AUD 20 million in the prior year, with a gross profit margin of 36%.
Operational metrics reflected the transition to underground mining, with 2.2 million tons of ore mined and 2.5 million tons processed. Underground ore accounted for 58%–59% of total ore mined across FY 2026, reaching 100% in the second half as open-pit operations concluded. Unit operating costs rose 23% to AUD 984 per ton sold due to the mining method change.
Liontown’s cash balance increased to AUD 561 million from AUD 156 million at the start of the year, while total debt declined to AUD 369 million, resulting in net gearing of nil. Shares rose 2.3% to AUD 1.223, extending a rebound from a 52-week low of AUD 0.76.
Guidance for FY 2027 includes concentrate production of 390,000 to 440,000 tons, with a target run rate of 2.8 million tons per annum by the end of the year. Capital expenditure is forecast at AUD 320 million to AUD 370 million, fully funded from operating cash flow. Unit operating costs are expected to range between AUD 1,050 and AUD 1,250 per ton sold, reflecting temporary inefficiencies during expansion tie-ins.
A final investment decision on the Kathleen Valley expansion is anticipated by the end of the following month, with plans to add a 5.5 MW ball mill and develop underground infrastructure at the North West Flats project.
