Liontown Resources reached 72 per cent completion of the Kathleen Valley lithium project during the first half of the 2023–24 financial year (H1 FY24).
The emerging battery metals producer said every major contract for Kathleen Valley has been awarded and the project remains on schedule to achieve first production in the middle of 2024 while staying in line with the updated $951 million capital cost estimate.
“The updated capital cost estimate included a multi-contractor strategy to further de-risk plant execution and maintain schedule, scope adjustments to the structural mechanical piping package, higher specification materials, lining and equipment that will reduce future maintenance requirements,” Liontown said.
“The capital cost estimate excluded costs related to the 4Mtpa (million tonnes per annum) expansion and related to the build-up of ROM (run-of-mine) stockpiles.”
The Kathleen Valley project entered peak construction during the period, with more than 900 people working on-site and accommodation fully utilised.
“At December 31 2023, the company had completed 676 permanent rooms in the accommodation village along with construction of a temporary 100 room satellite camp,” Liontown said.
Liontown moved about 2.8 million bulk cubic metres (BCM) during the period, which supported stockpiling of ore for production, waste material for the run-of-mine pad and tailings storage facility construction.
“(Total material movement) of 5.2 million BCM was achieved for (the) 2023 calendar year, a significant milestone following commencement of open pit mining in January 2023,” Liontown said.
Financially, the company reported a net loss before tax of $31 million for the period, which included interest revenue of $8.5 million, corporate and administrative costs of $20.7 million, share based payments of $3.9 million and exploration and evaluation expenditure of $6.6 million.
As of December 31 2023, Liontown held net assets worth $801.2 million and cash equivalents worth $516.9 million.
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