Liontown Resources Ltd’s shares advanced 3.3% to A$1.235 on Tuesday after the lithium miner reported its first underlying profit and outlined progress at its Kathleen Valley mine.
The company posted an underlying net profit after tax of A$14 million for the year, a turnaround from its prior-year loss. Revenue more than doubled to A$639 million from A$300 million, driven by operations at the Kathleen Valley lithium mine in Western Australia.
Liontown closed the fiscal year with A$561 million in cash and no net debt, a significant improvement from A$567 million in net debt twelve months earlier. Operating cash flow reached A$182 million, providing funding flexibility for future expansion.
Management reaffirmed plans to ramp Kathleen Valley’s processing capacity to 2.8 million tonnes per annum by FY2027. The expansion is expected to be fully funded from existing cash reserves, removing concerns over potential equity dilution from capital raises.
The stock outperformed the ASX 200, which rose 0.2% on the session. Liontown’s gains reflect investor confidence in its operational turnaround and debt reduction amid strong lithium market fundamentals.
