Australia's Liontown posts wider interim loss on LG Energy stake sale charge

LG Energy Solution

11/03/2026 23:34

March 12 (Reuters) - Australia's Liontown LTR.AX reported a widened first-half loss on Thursday after logging a non-cash accounting charge after South Korea's LG Energy Solution 373220.KS sold its stake in the firm last month.

Shares of the firm were down as much as 2.5% to A$1.59 by 2324 GMT.

The lithium producer posted a net loss after tax of A$184 million ($131.25 million) on a statutory basis for the six months ended December 31, compared with a loss of A$15 million in the prior corresponding period.

Liontown said the reported loss included a one-time A$104 million non-cash accounting charge after the South Korean company sold its 7.5% stake in the firm worth at least A$419 million in a block trade.

The sale resulted in LG Energy no longer being a Liontown investor, however, the lithium miner expects to recognise a gain of A$58 million upon conversion to equity, to be reflected in its full-year results.

The company also said a brownfield expansion is underway at its flagship Kathleen Valley project, which is expected to reduce unit costs as a result of increased scale.

"We are advancing critical path procurement now," it added in its statement.

($1 = 1.4019 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)

 ((Shivangi.Lahiri@thomsonreuters.com))