Liontown Resources Ltd.

Liontown Resources Ltd. is a mid-tier lithium producer headquartered in Perth, Australia, operating primarily in Australia. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 advanced exploration project. Key assets include Kathleen Valley. The organization's business model is centered on being a 100% owner-operator transitioning from an exploration and development entity to a fully integrated battery minerals producer. A key operational characteristic is the strategic separation of dry and wet plant construction, which de-risked the project schedule by allowing for early commissioning of the dry circuit without impacting the overall timeline. The company employs advanced processing technologies, including an ore sorting trial that utilizes a combination of laser and x-ray technology to upgrade material and maximize resource utilization. This focus on ore hygiene is designed to enhance process plant performance and efficiency. Competitive positioning is supported by strategic partnerships with offtake customers who are diversified by geography and their position in the battery value chain. The business model also includes the potential for vertical integration into downstream chemical processing, leveraging control over its own feedstock to capture higher margins and create an integrated business. This approach was recognized externally when one of its development projects was ranked highly in a 2023 global industry assessment for its economic and financial potential.

The company's strategy focuses on developing its primary asset to its full potential while concurrently exploring downstream expansion to capture higher margins. A core objective is to become a globally significant provider of battery minerals by establishing an integrated chemical business, leveraging its control over feedstock. This is being pursued through strategic partnerships, including a 2023 agreement with Sumitomo Corporation to study the feasibility of a new supply chain and a post-FY24 agreement with LG Energy Solution to investigate establishing a refinery compliant with the United States Inflation Reduction Act. In response to market volatility, management initiated a review in January 2024 of a planned 4 million tonne per annum expansion to preserve capital and reduce near-term funding needs. This review involves assessing the deferral of underground development work, adjusting mine plan sequencing, and identifying further cost optimizations. The long-term vision includes expanding the corporate portfolio at an opportune time through organic growth, value-accretive mergers and acquisitions, or exposure to the circular economy.

Executive leadership is headed by a Managing Director and CEO with over 30 years of global mining experience, including senior executive roles at BHP and Rio Tinto with a track record in operations, M&A, and project delivery. The board of directors held 18 meetings during FY24. Governance framework enhancements during the year included the implementation of a formal whistleblower and grievance mechanism for improved transparency and the publication of a Human Rights Policy. The board structure includes an Audit Committee, a Remuneration Committee, and a Sustainability & Risk Committee to provide specialized oversight. In FY24, the Remuneration Committee engaged an external consultant to provide comparative market data for assessing remuneration levels. Management's business readiness plan was a core activity, integrating all functional areas to de-risk the transition to operations by establishing key systems, processes, and a skilled workforce well ahead of production commencement.

The organization has committed to a net-zero operational emissions target by 2034. A key environmental initiative is the commissioning of a 95-megawatt hybrid power station designed to supply a minimum of 60% renewable energy at start-up, utilizing 16 megawatts of solar panels, 5 wind turbines providing 30 megawatts, and an 18-megawatt battery storage system. The company's ESG approach includes using tailings combined with cement to create paste for backfilling underground voids, which facilitates dry stacking, increases water recovery, and reduces future tailings dam requirements. Engagement with the Tjiwarl Traditional Owners has directly influenced project design, procurement, regional water strategy, and the layout of the accommodation village. The company also exceeded its spending targets with local and Indigenous businesses and contractors. Safety performance in FY24 resulted in a Total Recordable Injury Frequency Rate of 5.99 and a Lost Time Injury rate of 0.33, both surpassing internal targets. Over 8,643 hours of cultural awareness training were completed during the year.

Significant corporate activity in FY24 included a non-binding indicative acquisition proposal from Albemarle Corporation, which was received in September 2023 and subsequently withdrawn in October 2023. The company's ownership structure includes several substantial shareholders, with Hancock Prospecting Pty Ltd, Timothy Goyder, State Street Corporation, and JPMorgan Chase & Co. all holding significant positions as of August 2024. A key strategic partnership was deepened post-financial year with foundation partner LG Energy Solution, which made a US$250 million investment via convertible notes and agreed to a 10-year offtake extension. This agreement also includes a downstream collaboration to investigate establishing a new refinery. Another strategic partnership was formed in August 2023 with Sumitomo Corporation to jointly study the feasibility of developing a new supply chain. The group's operational activities are conducted through several wholly owned subsidiaries, including LRL (Aust) Pty Ltd and Buldania Lithium Pty Ltd.