Liontown (LTR) Q2 2026 TU earnings summary

Executive summary

• Completed transition to 100% underground mining at Kathleen Valley, exceeding production targets and marking a key operational milestone.

• Underground ore mined increased 37% quarter-over-quarter, with production momentum and operational leverage driving cost improvements.

• Achieved neutral operating cash flow and ended the quarter with A$390 million in cash, providing strong financial flexibility.

• Plant recoveries improved to 63%, with a clear path to 70% as underground ore becomes the dominant feed.

• Inaugural spot market auction and new offtake agreement with Canmax enhanced sales flexibility and customer diversification.

Financial highlights

• Revenue rose 91% quarter-over-quarter to A$130 million, the strongest since operations began, driven by higher sales volumes and improved pricing.

• Unit operating costs reduced 17% to A$910/dmt sold, and all-in sustaining costs improved 22% to A$1,059/dmt sold.

• Sales volumes rose 45% to 112,000 tons, and production increased 21% to 105,000 tons at 5.1% Li₂O.

• Realised pricing improved 29% to US$900/dmt (SC6 equivalent: A$1,365/ton).

• Cash balance at quarter-end was A$390 million, with 13,800 dmt of saleable concentrate inventory.

Outlook and guidance

• FY26 is a transition year; guidance unchanged with underground production expected to reach 1.5 Mtpa and 70% recovery by end of Q3.

• Unit costs expected to trend lower in FY27 as underground mine reaches 2.8 Mtpa steady state.

• FY26 production guidance: 365–450 kdmt concentrate, AISC of A$1,060–1,295/dmt, and unit operating costs of A$855–1,045/dmt.

• Expansion study for 4 Mtpa case underway, aiming for low-capital, high-return growth pathway.

• Cash flow projected to improve as higher-grade underground ore becomes dominant feed.