Liontown Limited (LTR.AX): 4Q26 Results: Strong Cash Build, but FY27 Costs and Capex Well Above Expectations

Research evidence excerpt

Liontown Limited (LTR.AX): 4Q26 Results: Strong Cash Build, but FY27 Costs and Capex Well Above Expectations

Flash |

28 Jul 2026 20:07:06 ET │ 11 pages

Liontown Limited (LTR.AX)

4Q26 Results: Strong Cash Build, but FY27 Costs and Capex Well Above

Expectations

CITI'S TAKE Neutral

Price (28 Jul 26 16:00) A$1.20 Liontown delivered a solid operational quarter, with production of 103kt in

Target price A$1.35 line with CitiE and consensus, but FY27 guidance was weaker than our

already cautious expectations. As highlighted in our report Australian Expected share price return 12.5%

Lithium - Strong Balance Sheets, Weak Momentum last week, CitiE Expected dividend yield 0.0%

already incorporated materially higher costs and capex than consensus; Expected total return 12.5%

nevertheless, FY27 production guidance was 6% below CitiE at the Market Cap A$3,815M

midpoint, cash costs were +18%, and capex was 8% higher, with US$2,661M

substantially larger variances versus consensus. JunQ production of 103kt

was in line with expectations, although cash costs of A$995/t were 12%

above CitiE. Operationally, record underground development and 92%

plant availability support the pathway to a 2.8Mtpa run-rate by end-FY27. Thiago OjeaAC

Importantly, FY27 capex guidance excludes further expansion expenditure +61-2-8225-2404

following the expected September FID, leaving additional upside risk to thiago.ojea@citi.com

capital requirements. Net cash flow of A$137m lifted cash to A$561m, but Jack Whelan

the weaker-than-expected guidance reinforces our cautious view on +61-2-8225-5979

Liontwon. jack.whelan@citi.com

Operational performance remains broadly on track — Kathleen Valley produced

103kt of concentrate during the quarter, up 7% QoQ and in line with both CitiE and

consensus.