The Liontown Resources Ltd (ASX: LTR) share price is pushing higher on Friday.
In morning trade, the lithium miner's shares are up over 2% to 63 cents.
This follows the release of the company's half year results before the market open.
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Liontown share price higher on results day
Investors have been buying the company's shares this morning after it released its half year results for the six months ended 31 December.
According to the release, Liontown recorded revenue of $100.4 million for the half. This reflects spodumene concentrate sales volumes of 100,240 wet metric tonnes (wmt) from four shipments, with an average realised price of US$811 dry metric tonne (dmt).
Though, it is worth noting that the company only achieved its first production of spodumene concentrate from the Kathleen Valley Lithium Operation on 31 July 2024. So, this result is not for a full six months of production.
Management advised that its cost of goods sold would equal revenue until commercial production was called at the Kathleen Valley processing plant. Costs in excess of revenue during this period were capitalised to assets under construction.
As a result, Liontown recorded zero gross profit for the half. This ultimately led to the company recording a net loss before tax of $15.2 million for the first half of FY 2025.
However, commercial production at the Kathleen Valley processing plant was declared with effect from 1 January 2025. This means that the capitalisation of commissioning costs will cease from this date.
Liontown ended the period with a cash and cash equivalents balance of $192.9 million. Combined with its positive operating cash flow generation, management believes this leaves it well-positioned to support shareholder returns through asset value growth, earnings, and dividends.
In addition, it allows the company to screen for compelling M&A opportunities to diversify beyond a single-asset operation.
Lithium demand
While these results weren't much to write home about, management's commentary on the outlook for lithium prices could be. It said:
Lithium demand grew 25% YoY in 2024, with a 10% forecasted CAGR through 2035. Robust EV demand growth largely driven by key markets like China and the rest of the world (ROW), which are outpacing regions like the EU and US.
It also highlights that at current low lithium prices, new projects will be more difficult to induce. This could mean that supply fails to keep up with demand and causes lithium prices to charge higher again.
Time will tell if that is the case, but with the Liontown share price down over 50% in 12 months, shareholders will no doubt be hoping that the tide turns soon.
