Image: Liontown Resource
Liontown has marked a pivotal moment at its Kathleen Valley lithium site in Western Australia. The firm reported a strong quarterly result while it scaled up to full underground production—Australia’s first dedicated underground lithium mine.
Key Highlights
Liontown produced 85,892 dry metric tonnes of concentrate spodumene during the June quarter and sold 97,330 tonnes, which made it around A$96 million of revenue. For the third straight quarter, the company has managed to keep its operations in the black, generating consistent cash flow from its day-to-day business. Plant availability was higher than 95 per cent, and in the shift to lower-grade stockpiles, quality of concentrate has been upheld at approximately 5.2 % lithium oxide. It exceeded more than A$100 million cost-cutting targets ahead of the game and came close to A$112 million overall.
Going Underground on the Go
Source: Liontown Resources
Earlier this year, in 2025, Liontown officially commenced underground mining of the Mt Mann orebody. With two headings in production and a third in development, the operation now produces over 50 per cent of mill feed. With the country’s biggest paste-fill plant now in place, Liontown is laying the groundwork for safer underground mining and positioning itself to step into full-scale production by FY26. This milestone positions Kathleen Valley at the forefront of Western Australia’s critical minerals portfolio.
A Human Tale at the Mine
In the plant, processing and mining personnel sifted through complex issues. Seamless shifts between open-pit high-grade to lower-grade gabbro required exact blending and watchful eye by the engineering team. The reward? Recovery levels stayed at higher than 64 per cent despite varying conditions. Below ground, mine teams produced greater than 300 metres per jumbo per month, with uninterrupted ore access for Stope zones. Management credited this bottom-up initiative—claiming the team’s commitment and determination were the difference between slick operations and costly missteps.
Fighting Lithium Market Pressure
Spodumene prices fell sharply—by around 9 to 15 per cent over recent months. A number of global lithium operations suspended operations or began slashing costs. Liontown, though, remained in operations by leveraging efficiency gains, mixing stockpiles, and retaining concentrate quality. While income fell earlier in the year, the team reacted quickly and kept equipment moving when others did not. Long-term offtake agreements continue in place with exposure to entities such as Tesla, LG and Ford, while greater flexibility with Chinese consumers has provided dynamic positioning with market movements. Financial Strength and Cost Discipline
A$96m of Q4 revenue takes full-year numbers to approximately A$301m. Operating cash flow of A$23m propelled the cash balance to approximately A$156m in the final quarter. And just shy of A$112m of optimisation savings was realized by improved scheduling, more stringent mill control and astute capital planning. Leverages disciplined execution—engineers, finance groups and site personnel combined to safeguard margins in low-price environments.
What This Means for WA and the Industry
Kathleen Valley isn’t just a mine—It’s a flagship project. Western Australian government organizations have backed the project with low-interest financing, reduced charges and support from the traditional owners. Located in the Goldfields, the project provides support for up to 500 direct regional jobs and construction of regional infrastructure. It’s living evidence that contemporary critical minerals developments can balance commercial profitability, community, sustainability and local growth.
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A glimpse at FY26
Recovery rates will rise from the current mid-60s to low 70s per cent as increasingly more of the underground ore is trucked to the plant. Production costs will ease once again with improved blend consistency and ramp-up throughput. The mine moves into a cleaner, higher-grade phase with the paste plant on line and underground access growing. Liontown faces the new year with options: staged ramp-up or expansion contingent upon lithium price recovery and market response.
Why This Matters Now
Liontown is showing lithium producers how they can thrive when the cycle falls—the way of prudence in operation, engineering excellence and sound finance planning. Australia’s first underground lithium mine is now yielding real results: quality tonnes, strong cash flow and a transparent path to the future. In the risk-averse lithium demand cycle, Kathleen Valley stands out not through size itself, but through execution, adaptability and local operating platform that builds real value.
Conclusion:
Credit: Liontown Resources
Kathleen Valley mine in Liontown’s next chapter in the lithium saga in Australia. In FY25, it achieved robust spodumene production, reported cleanly sub-grade and booked handsome profit-despite a falling price for lithium. Focusing on one of the goals of blending, cost control and rate of development fulfills operators re-defining value, instead of focusing on volume. When FY26 rolls around, Kathleen Valley will deliver cleaner feed, higher recovery and maintained discipline. It’s evidence that in large minerals, wise implementation can carry greater leverage than commodity frenzy.
