Liontown Posts A$184 Million Loss as Lithium Prices Rise
Liontown posted a wider A$184 million loss due to a non-cash charge. The miner is eyeing expansion as lithium prices recover and production targets remain firm.
Australia mining firm LIONTOWN LTD reported a widened statutory net loss after tax of A$184 million ($131 million) for the six months ending December 31, representing a significant increase from the A$15 million loss recorded in the prior corresponding period. The result was primarily impacted by a A$104 million non-cash accounting charge related to a convertible note derivative, which was triggered by the company's share price appreciation from A$0.70 to A$1.575 during the half-year.
Despite the statutory loss, the company is positioning itself for a recovery in the lithium sector. Producers of the raw material used in electric vehicle batteries are seeing a nascent price rebound following a nearly two-year downturn caused by oversupply and slower-than-anticipated EV adoption. LIONTOWN LTD achieved spodumene pricing of $900 per metric ton in its December quarterly report, marking a 28% increase over the previous quarter. The miner sold 190,000 tons of the material as it transitioned to underground mining at its flagship Kathleen Valley operations.
