Liontown Resources : September 2024 Quarter Presentation (697.47 KB)

September Quarter 2024 Presentation

Tony Ottaviano: Managing Director and CEO

Jon Latto: Chief Financial Officer

Adam Smits: Chief Operating Officer

30 October 2024

ASX: LTR

ltresources.com.au

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

ESG Performance - September Quarter 2024

Safety

TRIFR 5.68 ↓ LTIFR 0.32 (-)

Social

Female Workforce

21% −

In line with industry benchmark

Environment

Renewable Penetration

86% −

Governance

Material Reportable

incidents

Zero (-)

Notes:

1. (-)designates metric unchanged
2. LTIFR: Lost Time Injury Frequency Rate; TRIFR: Total Reportable Injury Frequency Rate representative of rolling annual averages

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Production Highlights - September Quarter 2024

Mining	Processing
4.14Mt	282kt
total material mined for	processed in the quarter
the quarter

(Open pit: 3,957kt;

Underground: 187kt)

Production	Sales
28,171 dmt	10,831 dmt
spodumene concentrate	concentrate shipped
produced	(inaugural shipment, 5.33% grade)

Notes:

1.Production and plant metrics represent the period from first production; 31 July 2024 to 30 September 2024

Plant availability

87%

September month average

Lithia recovery

51%

September month average

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Performance: Mining advancing at a steady drumbeat

Mining production

• Continues to deliver across both open pit and underground with 4.14Mt total material mined for the quarter
• Total stockpiles of 674kt at quarter end (including 309kt clean ore, 261kt ore sorted product (OSP), and 104kt of post-crushed ore)

Underground

• Approaching 12 months of underground development (in November 2024)
• Strong jumbo development rates of 311 metres per jumbo per month achieving 1,869 development metres for the quarter
• First development ore successfully extracted from Mt Mann in August 2024, contributing 19kt of ore to the clean ore stockpile

Open Pit

• Well advanced with production of 3.95Mt moved in the quarter and the mining from the main ore zone contributing in-line with schedule

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Performance: Improving key process plant metrics

Upward trend and improving variability across all key metrics - mill availability, throughput and recovery

Plant availability

• Consistently exceeding greater than 80% from week 3
• Average mill availability of 87% in September, with ~99% availability achieved in the last week of September
• 82% availability recorded in week 7 due to mill offline for planned plant adjustments

Lithia recovery:

• Progressing in line with expectations, averaging 51% in September
• Ongoing optimisation work to continue improvement in lithia recovery and throughput rates

Subsequent to quarter end:

• Tantalum circuit commissioning commenced post-quarter end, yielding ~70t of concentrate grading over 4.5% Ta to 28 October 2024

Notes:

1. Charts show actual performance from first ore feed to mill i.e. includes all ore commissioning activities and ramp up
2. Orange line denotes trend line

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Performance: delivering production to plan

Strong throughput, concentrate output and first shipment achieved within the first quarter of production ramp-up

Spodumene concentrate production:

• ~28kt spodumene concentrate produced at an average concentrate grade of 5.2% Li2O

Mill throughput:

• Achieved ~282kt, exceeding ramp-up targets for August and September

• Crushing circuit achieved 3Mtpa annualised nameplate (on an instantaneous basis) as required over the course of the quarter

• Wet circuit stability improved over the quarter, enhancing recovery and throughput

Plant design:

• Whole of Ore flowsheet providing stable platform for progressive improvement, as expected

• Significant optimisation levers available to drive further step change in efficiencies

Notes:
1.	Charts show actual performance from first ore feed to mill i.e. includes all ore commissioning activities and ramp up
2.	Week 9 performance reflects a partial week (5 days)	7

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Performance: Strong start to shipments and offtakes

Initiated spot sales strategy to improve overall realised pricing and ensure market transparency

Sales:

• Inaugural shipment of 10,831dmt of spodumene concentrate, grading 5.33% Li20, departed Port of Geraldton on 27 September 2024
• Executed spot sale of 10,000 tonnes to a Singapore-based trader at reference price of US$802 per dmt SC6, above the market spot price at the time of execution. Cargo sailed on 26 October 2024
• Sales proceeds from this quarter's shipment will be recognised in the December 2024 quarter

Offtake agreements:

• Strategic Offtake Agreements planned to progressively be delivered as production ramps-up
• Offtake review with Ford was completed during the quarter resulting in a pricing reference amendment to lithium carbonate rather than hydroxide, and agreement to commence supply on or after 1 July 2025

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Cashflows reflect transition into production

Cash increased by $140M to $263M as at 30 September 2024

Notes:

1. US$250M Convertible Notes at 0.6715 exchange rate
2. All $M in chart above are in AUD unless otherwise stated

• Convertible notes: A$372M1 received as part of expanded strategic partnership with LG Energy Solution, aimed at funding ramp-up and working capital
• Operating costs: $52M of operating costs, including open pit mining, processing, maintenance, site administration, and corporate costs
• Capital expenditure: $29M invested in underground mine development and deferred waste at Kathleen's Corner Open Pit
• Kathleen Valley (KV) project expenditure: $81M spent on construction during the quarter completing the works
• Capital - Other: $69M which includes commissioning costs and capital projects not required for first production (e.g. paste fill plant)

Once in steady-state (end Q1CY2025) and project
expenditure finalises, the Company anticipates
operating and capital cashflows to normalise	9

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Business optimisation - strong through the cycle

Company-wide focus to increase productivity and sustainably reduce costs to further strengthen our position as a Tier-1 producer

Relentless focus

on productivity

• Transition from developer to operator while maintaining operating discipline and continuous improvement
• Investment in systems and processes through our business readiness phase has enabled strong start to ramp-up
• Every area of corporate and operations is under continuous review to improve outcomes and reduce costs

• Review well advanced to optimise ore feed throughputs and reduce costs in response to market conditions,

Mine planwhile retaining flexibility to expand when lithium prices improve

optimisation	• Anticipate providing an update to the market on outcomes by the end of CY2024

	Reducing all	• Review of all input costs is ongoing for both required quantities and current 'best' prices
	input costs	• Re-negotiations with suppliers in progress to reflect current market conditions and our requirements
	Optimising	• All capital spend is being reviewed and either optimised, deferred or removed
	• Implementing capital allocation process to drive internal competition and drive highest-value outcomes
	capital
	allocation	• Continuing to efficiently use sustaining capital for mine development

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