Liontown posts wider interim loss, eyes lithium recovery
Australia's Liontown reported a widened first-half loss on Thursday after logging a non-cash accounting charge and said it was reviewing potential expansion at its Kathleen Valley mine given likely higher prices for lithium.
Miners of the raw material used in electric vehicle batteries are riding a nascent price recovery after suffering through a near two-year downturn given slower EV uptake than widely expected that caused oversupply.
Liontown had reported improving prices in its December quarterly report, achieving pricing of $900 a metric ton, up 28% on the previous quarter. It sold 190 000 tons of lithium raw material spodumene in the first half as it transitioned to underground mining at its flagship operations.
"With FY2026 guidance unchanged and spodumene prices strengthening into CY2026, the Company expects cash generation to improve through the second half," it said.
The miner is insulated from a jump in oil prices brought about by conflict in the Middle East because its power comes 80% from renewable sources, CEO Tony Ottaviano said on an earnings call.
He also said Liontown is considering a brownfield expansion at Kathleen Valley and that the board will decide whether to approve it in the first quarter of next financial year. A decision is likely to rest on the trajectory of lithium prices, he said.
Shares of the firm were down as much as 3% at A$1.58 as of 12:34 GMT.
Liontown posted net loss after tax of A$184-million on a statutory basis for the six months ended December 31, compared with a loss of A$15 million in the prior corresponding period.
Liontown said the latest loss included a one-time A$104 million non-cash accounting charge related to a convertible note derivative that was primarily driven by Liontown's share price appreciation from $0.70 to $1.575 over the period.
South Korea's LG Energy Solution sold its 7.5% stake in the firm worth at least A$419-million in a block trade last month.
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