Liontown flags Kathleen Valley cuts on low lithium prices
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The news: Liontown Resources has revised the mine plan for its flagship Kathleen Valley lithium project and outlined up to $100 million in cost reductions, in response to the "low-price lithium environment".
The numbers: Under the revised Kathleen Valley plan, Liontown is targeting the delivery of 2.8 metric tonnes per year by the end of FY27. The miner expects $775 to $885 per dry metric tonne sold unit operating costs in the second half of FY25.
It also said that it will recoup up to $100 million in cost reductions and deferrals, expected to be captured through a business optimisation program with a focus on disciplined capital and cost management.
The context: The miner said it is resetting the baseline for its mine production plans to prioritise higher margin ore at reduced costs to adapt to the low-price lithium environment.
It has retained the option for future expansion when market conditions improve, the company said.
Liontown reported its first sale of spodumene concentrate from Kathleen Valley in September and received received payment for its first product shipment last month.
What they said: "When market conditions change, companies need to quickly adapt to meet the market," said Liontown's managing director and CEO Tony Ottaviano.
"Through the business optimisation work done by our team, the revised mine plan and guidance demonstrates our responsiveness to the low-price environment," he said.
The source: ASX announcement
