• First year of operations at Kathleen Valley with $298M revenue and $55M underlying EBITDA
• Breakeven operating cash flow supported by $112M in cost savings and deferrals
• Equity raising after year-end strengthens balance sheet with pro forma cash of $528M

Liontown Resources Limited (ASX: LTR) has released its full year financial results for the year ended 30 June 2025, reporting a milestone first year of operations at its Kathleen Valley project. The company achieved first production of spodumene concentrate in late July 2024 and declared commercial production at the processing plant from 1 January 2025, generating revenue of A$298 million during the ramp-up period. Despite a challenging lithium price environment, Liontown reported positive underlying EBITDA of A$55 million, an 18% margin, and maintained breakeven operating cash flow, supported by A$112 million in cost savings and deferrals. The underlying net loss after tax for FY25 was A$140 million, primarily reflecting amortisation of open pit deferred waste, depreciation on the newly commissioned plant, and financing costs. The statutory net loss after tax of A$193 million includes a A$81 million non-cash write-down of ore sorting potential stockpiles accumulated during ramp-up. Liontown ended the year with A$156 million cash on hand and a gearing ratio of 59%. Following an equity raising completed after year-end, pro forma cash increased to A$528 million, providing liquidity to fund the FY26 underground transition and position the business to capture cost and productivity benefits from FY27 onwards. The company also maintained a strong focus on safety and sustainability, achieving 81% renewable power penetration at Kathleen Valley and awarding three major contracts to 100% Tjiwarl-owned enterprises.

FY26 will be a transition year, with elevated unit costs as the company runs dual open pit and underground operations and processes ore sorting potential material in the first half, resulting in lower recoveries, production and sales. Recoveries are expected to improve in the second half to reach the ~70% target by Q3 FY26 as the company processes predominantly higher-grade underground ore. From FY27, Liontown expects to realise the full benefits of underground mining, positioning the company as a globally significant, sustainable supplier of lithium.