Australia's Liontown Resources trimmed its production plans for the flagship Kathleen Valley lithium project on Monday and flagged cost cuts to adapt to low metal prices, months after producing its first spodumene concentrate.
Shares of the Perth-based lithium producer fell as much as 4.2% to A$0.800, before recovering some losses to trade 0.6% lower at 23:40 GMT.
Liontown now plans a production rate of 2.8-million metric tons per annum from the end of fiscal year 2027, down from its earlier target of three-million tons by the end of the first quarter of 2025.
The lithium producer also flagged up to A$100-million in cost reduction and deferrals expected to be captured during its business optimisation programme, with a possibility of further expansion of the project when market conditions improve.
"We are adjusting our volumes to meet the current market. We will revisit what we need to do should the market conditions improve," CEO Tony Ottaviano said in an investor call.
Global lithium markets are reeling from rapid supply growth, which has surpassed demand for the battery metal at a time when the sales growth of electric vehicles has slowed.
Earlier this year, Liontown posted an annual net loss after tax of A$64.9-million.
The company said it expected unit operating costs of A$775 to A$855 per dry metric ton for the second half of the fiscal year.
Edited by: Reuters
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