Liontown Resources (ASX: LTR) has officially declared commercial production at its Kathleen Valley Lithium Operation, capping off a strong March quarter that showed major progress across production, cost control and operational milestones—despite challenging market conditions.
Let’s start with the headline numbers: quarterly revenue jumped 17% to A$104 million, driven by record production of 95,709 dry metric tonnes (dmt) of spodumene concentrate and strong sales of 93,940 dmt across five shipments. This was coupled with a tidy A$14 million in positive cash flow and a healthy cash balance of A$173 million at the end of March.
The cost side of the business also saw significant improvement. Unit operating costs dropped by 18% to A$816 per dmt (FOB), or US$512—helped along by increased volumes and cost optimisation efforts. All-in sustaining costs fell too, down 8% to A$1,081 per dmt. Management says cost guidance remains unchanged, though costs are now expected to sit at the upper end of the range.
The process plant continues to ramp up nicely. March was a record month, producing over 37,000 dmt of spodumene concentrate and achieving 68% lithium recovery—lifting the quarterly average to 64%, a 10% improvement over December. The team also trialled ore sorting product (OSP) with solid results, confirming the plant can handle higher levels of gabbro contamination without compromising concentrate quality. That’s a big tick for flexibility going forward.
Underground operations are now up and running, with the first stoping blast at Mt Mann successfully fired in early April. Development is ahead of plan, with 1,849 metres advanced in the March quarter and key infrastructure like the paste fill plant on track for commissioning in May. Stockpiles remain strong too, with 1.3Mt of ore on hand to support the transition to full underground operations.
On the ESG front, Liontown maintained over 80% renewable power penetration from its hybrid power station, and community engagement and regulatory progress remained steady. Safety metrics were slightly up due to reduced construction hours, but the company is keeping a strong focus on improvement initiatives.
Bottom line: Liontown is hitting its stride, with commercial production now declared and solid execution across the board. There’s still work to do—particularly on lithium recoveries and the underground ramp-up—but the fundamentals are strong, and the Kathleen Valley operation is building serious momentum.
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