Slides
Page 1
ASX: LTR | ltresources.com.au 1 March Quarter FY25 Presentation 24 April 2025 For personal use only
Page 2
2 Important Information Important Information This Presentation contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, 'guides', ‘expects’, 'anticipates', 'indicates' or ‘intends’ and variations of these words other similar words that involve risks and uncertainties. Forward looking statements in this Presentation include, but are not limited to, the 2H FY25 Guidance and specific financial and operating parameters including ore processed, progressing grade, recoveries, unit operating costs, sustaining capital, mine development capital, growth capital, concentrate produced and concentrate sold. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this Presentation, are considered reasonable. Key assumptions on which the Company's forward-looking statements are based include, without limitation, assumptions involved in the estimation of the Kathleen Valley Ore Reserve as well as, in particular, assumptions regarding the mining method and schedule (including the transition to underground mining in FY26), targeted throughput volumes and grade, recoveries, operating and capital costs. Forward- looking statements may be further based on internal estimates and budgets existing at the time of assessment which may change over time, impacting the accuracy of those statements. These estimates have been developed in the context of an uncertain operating environment resulting from, among other things, inflationary macroeconomic conditions, general market forces applying to the price of the Company's targeted commodity and the risks and uncertainties associated with mining and project development, including in particular, the commissioning and ramp up of the Kathleen Valley Operation which may delay or impact the production and sales estimates set out in this Presentation. Such forward-looking statements are not a guarantee of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and the management. This Presentation is not exhaustive of all factors which may impact the forward-looking statements. The Directors cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this Presentation will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. The Directors have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this Presentation, except where required by law or the ASX listing rules. All references to dollars ($) and cents in this announcement are to Australian dollars, unless otherwise stated. Disclaimer Whilst care has been exercised in preparing and presenting this presentation, to the maximum extent permitted by law, Liontown Resources Limited and its representatives: • Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Presentation; • Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Presentation; • Accept no responsibility for any errors or omissions from this Presentation; and • Do not give any legal, tax, accounting, investment, policy or other regulated advice. Authorisation This Presentation has been authorised for release by the Managing Director, Mr Tony Ottaviano. For personal use only
Page 3
3 Summary - March Quarter 2025 Kathleen Valley Full Potential Downstream Expansion Liontown Full Potential The best strategies endure the cycles; ours is unchanged PoweringTomorrow, RespectingToday. Track record of safe operations and delivering on ESG commitments Continued improvement in plant performance — ore sorting and underground feed trials demonstrate plant’s flexibility and upside Underground production, commenced on schedule withmine developmentahead of plan Lower operating costs delivering positive net operating cash flows and a robust cash balance Over 200,000 dmt of ~5.2% spodumene concentrate produced to date ✓ ✓ ✓ ✓ ✓ Underpins… Successful ramp up in... Increasing sales volumes... Reputation for delivery... For personal use only
Page 4
4 ESG Performance LTIFR1 1.13 (previous quarter: 0.66) Safety (Reduction in labour hours following completion of the Project construction phase has, in part, impacted TRIFR and LTIFR) ESG TRIFR1 6.78 (previous quarter: 4.59) Female Workforce 22% (previous quarter: 23%) Renewable Power 80% (previous quarter: 82%) Tjiwarl light vehicle maintenance team For personal use only
Page 5
5 Highlights – March Quarter 2025 Financial OutcomesOperational Performance Production Sale s95,709dmt 93,940dmt 12% increase on previous Quarter, record 37,171 dmt produced in March 2025 583kdmt Sale s64% 10% increase on previous Quarter average- 68% month average achievedin March 2025 processed in the quarter A$104M A$14M Average realised price of US$815/ SC6e dmt (CIF)2 Driven by strong operational performance A$173M Strong cash balance maintained, plus 23kt saleableconcentrate on hand at 31 March FOB, per dmt sold 18% lower than previous Quarter A$816 (US$512)4 Concentrate Production Concentrate Sales Lithia Recovery Processing Revenue Net Cash from Operating Activities Cash SC6e Unit Operating Cost3 Five shipments this Quarter Production, costs and sales continue to track well, achieving positive net cashflow from operating activities For personal use only
Page 6
6 Mining Performance – Open Pit Kathleen’s Corner Open Pit continues to progress to plan • 2.5Mt of material (clean ore, OSP material and waste) moved during the Quarter, with an average Li2O grade mined of 1.0% • Final open pit grade control drilling completed and the open pit on track for completion in Q3 FY26 • Stockpile balance totaling ~1.3Mt, an investment of A$103M, supporting the transition to full underground operations and ramp-up of production stoping Kathleen Corner Open Pit Run of Mine ore pad For personal use only
Page 7
7 Mining Performance - Underground Underground development continues to exceed expectations • 1,849m of underground development achieved this quarter, ~160m ahead of plan. • 53kt of clean ore extracted during the Quarter, with an average grade of 1.5% Li2O • High jumbo productivity continues, with an average of 308m per jumbo per month • Key infrastructure projects to support underground production advancing as planned, with paste plant ready for commissioning in May Underground Development - metres Successfully commenced underground production on schedule in April 20255 1,869 1,903 1,849 Sep2024 Dec 2024 Mar 2025 FY25 by Quarter ~9,200 cumulative UG development metres since November 2023 Mt Mann underground – Pegmatite ore face For personal use only
Page 8
47% 58% 64% ~70% Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY26 target Quarter since first production (31 July 2024 - 31 March 2025) 8 Plant performance Plant Availability – average (%) Recovery – average (%) 78% 89% 91% Q1 FY25 Q2 FY25 Q3 FY25 Quarter since first production (31 July 2024 - 31 March 2025) Strong performance and continued improvements in processing efficiency • At average mill feed grade of ~1.3%, lithia recovery increased by 10% from an average of 58% in the December Quarter to 64% this Quarter, reflecting ongoing performance improvements • March was a record month across multiple metrics, with 37 ,171 dmt of spodumene concentrate at 68% lithia recovery and an average 5.2% Li2O grade6 • Mill throughput exceeded targets,with 583k dmt processed during the Quarter; mill availability maintained high levels, averaging 91% • Optimisation initiatives underway to further improve overall recovery performance and consistency, and further recovery upside: - Tails regrind, targeting coarse particles - Improved comminution and classification efficiency - Flotation improvements focused on a coarse / fine recovery regime/s Liontown remains on track to achieve 70% lithia recovery target by Q3 FY26. For personal use only
Page 9
Jun 25 Qtr Sep 26 Qtr 9 Pathway to Underground Ore blend and stockpiles derisking the Underground ramp up • The Company has strategically built and paid for significant run-of- mine (ROM) stockpiles (comprised of clean ore and OSP7), which alongside open pit mining, will support processing volumes during the transition to 100% underground ore OSP and Underground Ore Trials • OSP processing trials demonstrated the ability to handle increased gabbro9 contamination in the feed and producing saleable concentrate, highlighting the plant's flexibility and optionality • Processing of underground ore (utilising previously extracted development ore), with a head grade of ~1.5% Li2O, achieving multi- day lithia recoveries exceeding 70% Open Pit incl OSP7 Underground Illustrative Mill supplied solely by underground volumes8 Commencing underground production and processing underground ore Illustrative Ore Processed by Source (Illustrative % of total ore processed) ~15 months Aerial view of the process plant For personal use only
Page 10
10 Production and sales Spodumene concentrate production and sales Over 200,000 dmt of spodumene produced since July 2024 Production • For the Quarter, 95,709 dmt of spodumene concentrate producedat an average grade of 5.1% Li2O • The tantalite circuit continues to be optimised, with 253 dmt of saleable-grade tantalite concentrate produced during the quarter. Sales • Five shipments totaling 93,940 dmt of spodumene concentrate at an average grade of 5.2% Li2O were completed during the Quarter, including the largest single cargo to date –36kt – shipped in January to a mix of customers • Tantalite sales of 221 dmt were completed during the Quarter. Strong inbound interest continues for spodumene volume, underscoring the robust demand for Tier 1 jurisdiction lithium supply 27 86 96 11 81 94 Q1 FY25 Q2 FY25 Q3 FY25 Quarter since first production (31 July 2024 - 31 March 2025) Spodumene concentrate produced (kdmt) Spodumene concentrate sold (kdmt) Kathleen Valley Concentrate Shed - Spodumene concentrate stockpile For personal use only
Page 11
11 Quarterly operational and financial metrics Strong physicals and financials for the Quarter Revenue • A$104 million revenue for the quarter, up 17% on the prior quarter, achieving a realised price of US$815dmt SC6e Unit Operating Costs (FOB) • 18% decrease from prior Quarter to A$816/dmt SC6e sold primarily driven by higher sales volumes • Net revenue (after freight costs) from tantalite sales was A$0.9M for the Quarter AISC • 8% decrease from prior Quarter to A$1,081/dmt SC6e sold primarily driven by higher sales volumes Guidance • Guidance remains unchanged, with costs currently expected at the upper end of the range Business Optimisation Initiates • Realised A$60M of cost savings and deferrals as at 31 March 2025 Production and Sales Units Q3 FY25 Q2 FY25 Δ (%) YTD FY2510 Spodumene concentrate production dmt 95,709 85,69811 12% 208,629 Spodumene concentrate sales dmt 93,940 81,341 15% 186,113 Average Li2O grade shipped % 5.2 5.2 - 5.2 Concentrate inventories dmt 22,519 24,904 (10%) 22,519 Average realised price (CIF) US$/dmt SC6e2 815 806 1% 812 Tantalite concentrate production dmt 253 246 3% 498 Financial Metrics Units Q3 FY25 Q2 FY25 Δ (%) YTD FY25 Revenue A$M 104 89 17% 205 Cash balance12 A$M 173 193 (10%) N/A Cost Metrics Units Q3 FY25 Q2 FY2513 Δ (%) H2 FY25 Unit Operating Costs (FOB)3 A$/SC6e dmt sold 816 1,000 (18%) 816 US$/SC6e dmt sold14 512 652 (21%) 512 All In Sustaining Cost (FOB)15 A$/SC6e dmt sold 1,081 1,170 (8%) 1,081 US$/SC6e dmt sold14 678 763 (11%) 678 For personal use only
Page 12
Net cash flow from operating activities of A$14m 12 Solid financial performance Operational activities delivers positive cash flow Summary • A$101m cash receipts from customers in quarter • Additional ~A$12m received in April 2025 for shipment on 31 March 2025 • Positive cashflow from operating activities of A$14m, including ~A$6M paid in royalties this Quarter • A$27m of cash outflows from investing activities, primarily relating to development of the underground mine and sustaining capital associated with the plant • Strong end of quarter cash position of A$173m with 23k dmt concentrate on hand at 31 March 2025 Cash flows from investing activitiesCash flows from operating activities Cash flows from fin. activities All figures in A$m 193 101 (88) 1 (27) (7) 173 Cash 31 December 2024 Receipts from customers Payments for operating costs Net interest received & other Capital UG development, sustaining and project Lease & hire purchase costs Cash 31 March 2025 For personal use only
Page 13
13 Market update For personal use only
Page 14
114 128 169180 289 700 2024 2025 2030 Woodmac CATL 791 956 1,753 779 1,050 2,443 2024 2025 2030 Woodmac CATL 14 Market Update Energy Storage System (ESS) Demand16 (lithium demand, kt LCE) +83% YoY +133% YoY EV Demand16 (lithium demand, kt LCE) Strong demand continues across multiple segments • Q1 2025: Strong YoY EV sales growth - BYD March quarter sales up +59.8% YoY - EV battery giant CATL's Q1 net profit rose +32.9% YoY • Major battery maker, CATL, 5-year forecast significantly higher lithium demand that other forecasts, +83% YoY higher lithium demand for EVs and +133% YoY higher lithium demand for ESS • Forecasts supported by tangible capex investment: leading global battery manufacturers are investing heavily to meet anticipated growth • Upside risk to base case projections is real — especially with emerging new markets (robotics, drones, AI data centres) • Current ~100kt LCE supply overhang will reduce with strong demand continuing • Current low pricing levels continues to disincentivise exploration, brownfield expansions and new projects For personal use only
Page 15
15 Summary Recap Kathleen Valley Full Potential Downstream Expansion Liontown Full Potential The best strategies endure the cycles; ours is unchanged PoweringTomorrow, RespectingToday. Track record of safe operations and delivering on ESG commitments Continued improvement in plant performance— ore sorting and underground feed trials demonstrate plant’s flexibility and upside Underground production, commenced on schedule with mine development ahead of plan Lower operating costs delivering positive net operating cash flows and a robust cash balance Over 200,000 dmt of ~5.2% spodumene concentrate produced to date ✓ ✓ ✓ ✓ ✓ Underpins… Successful ramp up in... Increasing sales volumes... Reputation for delivery… For personal use only
Page 16
Level 2, 32 Ord Street, West Perth WA 6005 +61 8 6186 4600 info@ltresources.com.au liontown-resources-limited Liontown Resources @LiontownRes @LiontownRes 16 For more information: Leanne Kite Investor Relations lkite@ltresources.com.au +61 401 438 850 For personal use only
Page 17
17 Appendix A: Physicals summary Mining Units Q1 FY25 Q2 FY25 Q3 FY25 YTD FY2510 Open pit ore mined (incl OSP) kt 590 1,138 555 2,283 Open pit waste mined kt 3,368 1,506 1,913 6,787 Strip ratio (BCM) waste:ore 5.1 1.2 3.3 2.8 Average Li2O grade mined (open pit) % 1.2 1.3 1.0 1.2 Underground mining development metres m 1,869 1,902 1,849 5,620 Underground ore mined (incl OSP) kt 19 32 53 104 Underground waste mined kt 168 145 118 431 Average Li2O grade mined (underground) % 1.7 1.5 1.5 1.5 Processing Units Q1 FY2517 Q2 FY2511 Q3 FY25 YTD FY25 Ore processed kdmt 253 555 583 1,391 Lithia feed grade (quarter average) % 1.2 1.4 1.3 1.3 Plant availability % 78 89 91 87 Lithia recovery % 47 58 64 59 Stock Inventory Units Q1 FY25 Q2 FY25 Q3 FY25 ROM clean ore stockpile kt 413 697 460 OSP stockpile kt 270 605 886 Concentrate inventory kt 17 25 23 For personal use only
Page 18
18 Appendix B: Notes 1. LTIFR: Lost Time Injury Frequency Rate; TRIFR: Total Reportable Injury Frequency Rate representative of rolling annual averages. 2. Average realised sales price for the Quarter includes 31.5kt of provisionally priced sales which were marked to market as at 31 March 2025. Actual realised prices will be adjusted based on prevailing prices at the end of the relevant quotation period. 3. Unit operating cost (FOB excluding sea freight and royalties) is calculated on a SC6e basis and includes mining, processing, transport, port charges, and site based general and administration costs and is net of any tantalite by-product credits. It is calculated on an incurred basis and includes inventory movements and credits for capitalised mine costs. Depreciation of fixed assets, depreciation of right of use leases, and amortisation of capitalised mine costs are excluded from unit operating costs and the inventory movement. 4. Based on an average AUD:USD exchange rate of 0.6273 being the average exchange rate for Q3 FY25. 5. ASX Announcement “Underground production commences on schedule at Kathleen Valley” dated 9 April 2025. 6. Based on accredited site laboratory assays managed by SGS Australia Pty Ltd. 7. OSP: Ore Sorting Product – stockpiles containing contact ore and/or dilution 5-11%. 8. Inclusive of immaterial OSP mined from the underground. 9. Gabbro is the host rock which comprises of hornblende, pyroxenes, plagioclase, and biotite, it is silica-poor and contains no lithium, making it a waste rock and contaminant when mixed with ore. 10. Processing commenced on 31 July 2024. 11. Physicals for the December 24 Quarter have been adjusted to reflect a reconciliation completed as part of the process for the declaration of commercial production at the Kathleen Valley processing plant. The impact of the reconciliation includes an increase in recovery from 55.0% to 58.0%, an increase in feed grade from 1.3% to 1.4% and a decrease in ore processed of 64kdmt, resulting in a 2,985dmt reduction in concentrate produced in Q2 FY25. There is no impact on concentrate sales. 12. The Company’s cash balance excludes a further $25 million which is held by Export Finance Australia (EFA) as cash security in relation to a guarantee under the power purchase agreement with Zenith Energy. As the Company is now in operations, it is working with Ford, Zenith and EFA to release these funds through the provision of alternative security. The Company is working towards a return of these funds from EFA by June 2025. 13. The Company had not declared commercial production at the Kathleen Valley process plant as at 31 December 2024 and was capitalising commissioning costs in accordance with accounting standards. Notwithstanding this, the Unit Operating Costs and AISC for Q2 FY25 have been calculated as if commercial production had been declared from the commencement of the December Quarter. 14. Based on an average AUD:USD exchange rate of 0.6273 for the March Quarter and 0.6520 for the December Quarter. 15. AISC includes unit operating costs, royalties, lease payments and sustaining capital. 16. Source: Wood Mackenzie Global Lithium Market Strategic Planning Outlook, Q1 2025 & CATL Hong Kong Prospectus (Application Proof of CATL: Contemporary Amperex Technology Co., Limited). CATL figures converted from gigawatt hours to LCE using a lithium intensity of 0.80 for 2024 & 2025, and 0.65 for 2030 for EV Demand. Lithium intensity of 0.60 for 2024 & 2025, and 0.50 for 2030 for ESS demand. 17. Physicals for the September 24 Quarter have been adjusted to reflect a reconciliation completed as part of the process for the declaration of commercial production at the Kathleen Valley processing plant. The impact of the reconciliation includes an increase in recovery from 44.7% to 47.0% and a decrease in ore processed of 29kdmt, resulting in a 948dmt reduction in concentrate produced in Q1 FY25. There is no impact on concentrate sales. For personal use only