Liontown Resources, the taxpayer-backed Western Australian lithium miner, has reported a significant widening of its annual loss as it grapples with the ongoing downturn in lithium prices. The Perth-headquartered company posted a loss after tax of $193 million for the year ending June 30, a substantial increase from the $65 million loss recorded in the previous year. Liontown Resources is focused on the development of lithium deposits, essential for batteries used in electric vehicles and energy storage. The company is working to become a globally significant provider of lithium products.
The challenging market conditions have impacted Australian lithium miners, including Pilbara Minerals (PLS), Mineral Resources, and Liontown, as China’s fluctuating supply and demand dynamics have created volatility. Liontown reported an average price of US$673 (A$1050) per tonne for its 5.2 per cent lithium spodumene concentrate during the reporting period.
Despite the lower prices, Liontown managed to generate $298 million in revenue from its lithium sales. Chairman Tim Goyder acknowledged the difficulties faced by the industry, stating that the past 18 months had been particularly challenging due to the prolonged down cycle that impacted both market sentiment and pricing.
The company is likely focusing on cost management and strategic planning while waiting for a more favourable shift in the lithium market. Liontown hopes that lithium prices will recover in the future.
