Liontown Resources (ASX: LTR) on Wednesday approved an A$389 million ($271.68 million) expansion of its flagship Kathleen Valley lithium mine in Western Australia, prompting the company to raise its 2027 capital expenditure guidance by about 35%.
The Perth-based lithium miner raised its 2027 total capital expenditure guidance to A$435 million-A$495 million from A$320 million-A$370 million previously.
The increase reflects expansion capital approved under the project’s final investment decision.
The higher spending forecast includes A$175 million-A$195 million of Kathleen Valley expansion capital scheduled for fiscal 2027, Liontown said.
The Kathleen Valley expansion is expected to lift average spodumene concentrate production to about 780,000 dry metric tons (dmt) a year from financial year 2030, the company said.
The expansion builds on the miner’s recent push to expand its lithium footprint, which included the acquisition of Argentina’s Centenario project from Next Lithium in early September.
Liontown maintained its 2027 guidance for spodumene concentrate production of 390,000-440,000 dmt.
($1 = 1.4318 Australian dollars)
(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Subhranshu Sahu)
