Liontown Resources, a taxpayer-funded lithium miner, has reported burning through $44 million in the three months leading up to September 30, despite a recovery in lithium prices. This spending has made a dent in the $266 million the company raised in August to navigate the lithium downturn. Liontown Resources is a company focused on the exploration and development of lithium deposits. They aim to become a significant supplier of lithium to the global battery industry.
The loss-making company appeared to be approaching a break-even point, with the price of lithium trading roughly on par with its all-in sustaining costs of $1354 per tonne for the quarter. However, Liontown, whose largest shareholder is Gina Rinehart, continues to spend more than it earns, even as geopolitical factors increasingly favour critical mineral production outside of China.
During the quarter, Liontown increased its lithium concentrate production by 1 per cent to 87,172 tonnes compared to the previous quarter. However, sales experienced a 20 per cent drop, falling to 77,474 tonnes.
Liontown’s managing director and chief executive, Tony Ottaviano, stated that the September quarter was focused on execution and delivering on expectations that had been set and disclosed to the market.
