LTR +4.88%: Released a solid 1H25 result highlighting a steady and efficient ramp-up of their Kathleen Valley project.
- 1H25 revenue of $100m
- Net loss of $22.6m vs. $31.4m yoy
- $16.7m operating cash flow
- $193m cash on the balance sheet as at 30 December
The miner exhibited improving profitability over the period owed to better operational metrics. Lithium recovery increased by 23% to 66% during the period, targeting 70% by Q3 FY26. Ramp up continued with targeted 2.4Mtpa achieved in the Dec quarter. They have cut their total spodumene targets given current Li prices though we see this as sound strategy, as the business can focus on efficiency rather than headline production so can tactically ramp-up output once prices begin to rise.
As the project continues its shift to underground, LTR is well capitalised, holding sufficient stockpiles to meet contracted offtake alongside a robust balance sheet to see the transition through.
