Liontown Resources Ltd (ASX:LTR) released its March quarter results for FY2026, revealing a record cash position of A$424 million at quarter-end. This marks a significant increase from the previous average of A$330 million, signaling entry into a robust sales phase for lithium production following the first shipment from Kathleen Valley.
Financial Highlights
Quarterly revenue reached A$42.4 million, reflecting strong market recovery. Sales volumes surged 51% to A$109.7 million compared to prior periods. Key driver: spodumene concentrate (SC6e grade) fetched A$1,845 per dmt, 87% above the average price.
Production Achievements
Spodumene production hit 96,367 dmt, up 9% quarter-on-quarter and aligning with sales forecasts. Pan concentrate output rose 25% to 83,912 dmt, boosted by cyclone narrowing and a 26,270 dmt pan capacity expansion.
Plant utilization achieved 90%, processing 614kt of ore at 1.3% average Li2O grade. Lower-grade ore now dominates operations, comprising 70% of quarter-end shipments.
Sales Breakdown
Dense media lithium averaged A$981 per dmt (up 8%), while modified coarse averaged A$1,251 per dmt (up 18%). March shipments generated A$64 million in revenue, with April’s initial volumes excluded from Q3 figures.
Operational Momentum
Quarter-on-quarter drill results and fleet tracking drove infrastructure expansion at Kathleen Valley. Executives note potential for further resource growth, with Q4 FY2026 production expected to accelerate.
Processed ore utilization climbed from 48% period-to-date to 70% average in early April, reflecting improved efficiencies. Full-year plant ramp-up targets full lower-grade conversion by end-FY2026.
Future Guidance
Next quarter focuses on revenue growth and asset sales. Energy transition demand remains strong, with EV battery packs up 17% and fluorin hybrids up 13% in shipments.
Kathleen Valley expansion progresses: first ore processed December 2025, with dense media targeting 365,000-450,000 dmt spodumene at 5.2% Li2O. Cash guidance incorporates guides: A$100-125M revenue, capex A$150-180M.
Proceeds expected at A$100-125M, with total funding A$450-550M from guides and A$55-70M strategic cash. Plant services target A$15-18M outflows.
Market Reaction
Shares rose 1.23% to A$2.43 post-release, near 52-week high of A$2.48 and far above low of A$0.485. Strong results underscore lithium supply chain confidence amid global EV demand surge.
