Liontown Posts A$298M Revenue, A$55M EBITDA in FY25 Amid Market Headwinds
Liontown Resources reported a solid FY25 with A$298 million in revenue and positive EBITDA, setting the stage for a strategic underground transition in FY26 backed by a strengthened balance sheet and sustainability commitments.
- FY25 revenue of A$298 million with A$55 million underlying EBITDA
- Breakeven operating cash flow achieved despite lithium price softness
- Equity raising post-year-end boosts cash to A$528 million for FY26 underground transition
- FY26 marks transition from open pit to underground mining with targeted 70% lithia recovery by Q3
- Sustainability advances include 81% renewable power use and expanded Traditional Owner partnerships
FY25, A Foundation Year Amid Market Challenges
Liontown Resources has delivered a commendable first full year of operations at its Kathleen Valley lithium project, generating A$298 million in revenue and achieving an underlying EBITDA of A$55 million. This performance is notable given the backdrop of weaker lithium prices and the operational complexities of ramping up a new mining operation.
The company produced nearly 295,000 dry metric tonnes of concentrate at a weighted average grade of 5.2% lithium oxide, reflecting steady progress despite the initial six-month ramp-up phase. Importantly, Liontown managed to reach breakeven operating cash flow, underscoring disciplined cost management and operational efficiency.
Balance Sheet Strength and Capital Strategy
At 30 June 2025, Liontown held A$156 million in cash, which was further bolstered to a pro forma A$528 million following a post-year-end equity raising. This capital injection is earmarked to fund the critical transition to underground mining in FY26, a move expected to unlock lower-cost production and growth potential.
The company’s capital allocation framework balances growth ambitions, debt management, and shareholder returns, with a gearing ratio expected to improve from 59% to approximately 47% post capital raise. Debt facilities remain covenant-light with a staggered maturity profile, providing financial flexibility.
FY26, Transitioning Underground
FY26 is positioned as a transition year, with open pit mining scheduled to conclude by December 2025. The underground ramp-up will accelerate, targeting 70% lithia recovery by the third quarter and aiming for 100% underground production by early FY27. This shift is expected to deliver improved recoveries and lower unit operating costs from FY27 onwards.
Capital expenditure guidance for FY26 is set between A$100 million and A$125 million, split between sustaining capital and growth capital, including ongoing underground development. The company anticipates unit operating costs in the range of A$855 to A$1,045 per dry metric tonne sold during this transition.
Sustainability and Community Engagement
Liontown has embedded sustainability into its operations, achieving 81% renewable power penetration and expanding partnerships with Traditional Owners. Safety metrics remain strong, and the company has committed to transparent ESG reporting, including its inaugural ESG Data Book and forthcoming Modern Slavery Statement.
These initiatives not only enhance Liontown’s social license to operate but also position the company favorably amid growing investor and regulatory focus on responsible mining practices.
Market Outlook and Strategic Positioning
Despite volatile lithium prices throughout 2025, driven by supply news and market sentiment, demand fundamentals remain robust. Electric vehicle sales continue to outpace forecasts globally, and energy storage systems are emerging as a significant structural driver of lithium demand.
Liontown’s scale, quality of resource, and sustainability credentials underpin a long-term value proposition, with expansion optionality retained as the company navigates the evolving lithium market landscape.
Bottom Line?
As Liontown transitions underground in FY26, investors will watch closely to see if operational gains translate into sustained cost reductions and growth amid a dynamic lithium market.
Questions in the middle?
- How smoothly will the underground ramp-up progress and meet recovery targets?
- What impact will lithium price volatility have on Liontown’s financial performance in FY26?
- Will Liontown pursue further expansion or diversification beyond Kathleen Valley?
