Liontown joins the ranks of global lithium producers with ramp-up well underway at Kathleen Valley, all key operational metrics on track and first concentrate shipment achieved on schedule.

Liontown has made significant progress with the ramp-up of production at its Kathleen Valley Lithium Project. The milestones of first production and first shipment of spodumene concentrate were achieved on schedule during the quarter, along with strong early plant performance and continued delivery of mining output to plan. During the quarter, the Company also secured US$250 million in funding and an expanded strategic partnership with one of its foundation customers, LG Energy Solution.

Highlights

• The Company recorded a Lost Time Injury Frequency Rate (LTIFR) of 0.32, unchanged from the previous quarter, and a reduction in its rolling annual average Total Reportable Injury Frequency Rate (TRIFR) to 5.68.
• First spodumene concentrate production achieved on schedule on 31 July 2024.
• Maiden shipment from Kathleen Valley, comprising 10,831 dry metric tonnes (dmt) of spodumene concentrate grading 5.33% Li₂O, departed the Port of Geraldton on 27 September 2024 bound for an existing offtake customer. Revenue from this shipment was received subsequent to the end of the quarter.
• Spot sales strategy for uncontracted spodumene concentrate was initiated, achieving a reference price of US$802 per dmt SC6, representing a premium to the spot price at the time of execution, for a shipment scheduled in early Q4 CY2024.
• The ramp-up at the process plant has progressed in line with, and in some areas exceeded, expectations, with SAG mill availability of 87% and overall circuit lithia recovery of 51% achieved on average across the month of September 2024.
• Production progressed to plan, with production volumes totalling >28,000 dmt of spodumene concentrate in the eight weeks since commencement of first production to 30 September 2024, with an average concentrate grade of 5.2% Li₂O.
• Renewable power penetration from the Kathleen Valley Hybrid Power Station averaged 86% for the quarter, well above our target of 60%.
• Underground mining continued to progress to plan, achieving 1,869 total development metres for the quarter, at an average rate of 311 metres per jumbo per month. In a further milestone, first development ore from the underground was extracted from Mt Mann during the quarter.
• Main ore zone accessed in the Kathleen’s Corner open pit during the quarter in line with production schedule, significantly increasing clean ore stockpiles.
• At the end of the quarter, total stockpiles of around 674,000 tonnes (includes ~309,000 tonnes of clean ore, ~261,000 tonnes of ore sorting product (OSP) and ~104,000 tonnes of post-crushed ore on the fine ore stockpile).
• Expanded strategic partnership with LG Energy Solution announced, including US$250 million (A$372.3 million) Convertible Notes investment, 10-year offtake extension and downstream collaboration agreement to explore the feasibility of establishing a lithium refinery.
• Short-term 10-month offtake agreement secured for sale of ramp-up volumes linked to carbonate index price.
• As previously announced, Liontown is continuing to optimise its mine plan to reinforce its position as a Tier 1 spodumene concentrate producer, with initial work demonstrating flexibility to optimise production scenarios in response to the current low pricing environment. The Company will now provide an update by the end of CY2024.
• The Company’s cash balance was A$263.1 million as at 30 September 2024. Cashflow for the quarter includes non-recurring items, such as the receipt of proceeds from the Convertible Notes issued to LG Energy Solution and components of capital expenditure. Once in steady-state (end Q1 CY2025) and as project costs reduce, the Company anticipates operating and capital cashflows to normalise.