Liontown Resources Ltd (LTR.AU) shares plunged 9.17% intraday on Wednesday after the lithium producer released its quarterly production report alongside forward-looking guidance that raised concerns among investors about rising costs and heavy capital expenditure.

The company reported quarterly spodumene concentrate production of 103,000 dry metric tonnes (Kdmt), while issuing its FY27 outlook. Liontown guided for full-year concentrate production of 390,000 to 440,000 tonnes, with total capital expenditure expected to range between A$320 million and A$370 million. Additionally, the company forecast unit cost of sales at A$1,050 to A$1,250 per dry metric tonne sold, a level that likely rattled market participants given the ongoing pressure on lithium prices.

The combination of elevated capex guidance and a steep unit cost structure appears to have spooked investors, triggering the sharp selloff during the trading session as the market reassessed the company's near-term profitability trajectory.