Liontown Resources Ltd (ASX: LTR) shares are having a strong session on Thursday.

In morning trade, the lithium miner's shares are up 4.5% to 58.5 cents.

Why are Liontown shares roaring higher?

Investors have been bidding the company's shares higher today following the release of a stronger than expected third quarter update.

According to the release, Liontown continued to execute in line with its plan at the Kathleen Valley Lithium Operation during the three months ended 31 March, with production, costs and shipments tracking well.

In addition, preparation for the commencement of underground production progressed as planned, with the first stoping blast occurring on schedule in early April, ensuring operational milestones continue to be achieved.

This ultimately led to the production of 95,709 dry metric tonnes (dmt) of spodumene concentrate (up 12%) and the sale of 93,940 dmt across five shipments (up 15%).

Liontown's average lithium grade was steady at 5.2% but its average realised price was 1% higher quarter on quarter at US$815 per dmt. Combined with its increased volumes, this underpinned a 17% increase in revenue to A$104 million for the period.

Importantly, the lithium miner's unit operating cost was down 18% to A$816 (US$512) per tonne. This led to positive cash flow of A$14 million being generated from operating activities for the three months.

At the end of the quarter, Liontown had a cash balance of A$173 million.

Looking ahead, the company's guidance remains unchanged, with costs currently expected at the upper end of their range.

Management commentary

Liontown's managing director and CEO, Tony Ottaviano, was pleased with the quarter. He said:

During the Quarter, Liontown delivered another strong suite of results from the Kathleen Valley operation. Commercial production at the process plant was declared and we are seeing consistent, positive performance across key metrics, including the shipment of over 180,000 dmt of spodumene concentrate since production commenced, generating $205 million in revenue.

Ottaviano was particularly pleased with the optimisation of its cost base and operational efficiencies. He adds:

Our focus on optimising our cost base and seeking operational efficiencies is paying off, and the team continues to innovate and deliver productivity improvements. With preparations for underground production progressing smoothly, and in some areas completed ahead of schedule, we successfully commenced underground production stoping in April, demonstrating our continued operational momentum.

Despite today's gain, Liontown shares remain down by a disappointing 48% since this time last year.