By Digifin Pty Ltd · About this coverage
Key Points
- FID lifts five-year steady-state average concentrate production to about 780,000 dmt a year from FY30
- Approved expansion capital $389m real; forecast payback about 2.5 years from end of construction
- Processing capacity to rise from about 2.8 Mtpa to 4.2 Mtpa; peak more than 800,000 dmt in FY34
- Steady-state unit costs targeted at $840-$920/dmt FOB; sustaining capital $90-$100m a year from FY30
- FY27 production guide unchanged; FY27 total capex guide lifted to $435-$495m
About Liontown (ASX:LTR)
Liontown Limited is an ASX-listed lithium mining company headquartered in Perth. It owns and operates the Kathleen Valley lithium operation in the Northern Goldfields of Western Australia, where it mines and processes spodumene into lithium concentrate for export to battery and chemical customers. It also holds the Buldania lithium project in Western Australia.
Liontown (ASX:LTR)'s board approved a final investment decision to expand Kathleen Valley, lifting targeted five-year steady-state spodumene concentrate production to about 780,000 dmt a year from FY30 on an SC5.4 basis.
Approved expansion capital is $389 million in real terms as at 30 September 2026, inclusive of previously announced FY27 expansion expenditure of $60 million to $70 million and contingency, with forecast payback from incremental cashflows of about 2.5 years from the end of construction. Ore processing capacity is planned to rise from about 2.8 Mtpa to 4.2 Mtpa, peaking at more than 800,000 dmt in FY34. Scope includes $145 million of mining works and $244 million of processing and non-process infrastructure. Targeted average steady-state unit operating costs are $840 to $920 per dmt FOB and sustaining capital $90 million to $100 million a year for five years from FY30. Incremental tonnes are uncommitted for spot sales and potential new offtake. Funding is intended from existing cash and operating cash flow based on consensus pricing, with completion by the end of Q2 FY29. FY27 concentrate production guidance of 390,000 to 440,000 dmt and unit costs of $1,050 to $1,250 per dmt sold FOB are unchanged; FY27 total capital expenditure guidance rises to $435 million to $495 million from $320 million to $370 million. About 210 FTE roles are expected in construction and 185 ongoing roles once complete.
Expansion funding assumes consensus pricing. Offtake for the incremental tonnes is not yet contracted.
Source: Liontown Limited (ASX:LTR), 30 September 2026. Summary content supplied by Digifin Pty Ltd.
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