Liontown Resources Ltd reported its first annual profit on Thursday, driven by a recovery in lithium prices and increased output from its Kathleen Valley mine in Western Australia.
The company posted a net profit after tax of A$93 million for the fiscal year, reversing a A$193 million loss in the prior period. Underlying net profit, excluding one-off items, reached A$14 million, up from a A$140 million loss the previous year. Revenue nearly doubled to a record A$639 million, while underlying EBITDA rose to A$147 million from A$20 million.
Operating cash flow strengthened to A$182 million, compared with A$1 million in the prior year, and gross profit from operations turned positive at A$94 million, versus a A$144 million loss previously. Liontown also recognized a A$113 million deferred tax asset for carried-forward tax losses.
Production gains at Kathleen Valley contributed to the turnaround, with concentrate tonnes sold rising 35% and realized prices increasing 75%. CEO Tony Ottaviano noted the company navigated weak prices in the first half with cost discipline before reinvesting as market conditions improved.
No dividend was declared as Liontown prioritizes reinvestment in Kathleen Valley’s transition to full underground operations. The company remains on track for a 2.8 million-tonne-per-annum run rate by the end of fiscal 2027, with FY26 guidance already issued and a final investment decision on the mine’s expansion due next month.
Shares in Liontown were indicated 1.5% higher in early trade on the Australian Securities Exchange.
