Elevra Lithium H2 Earnings Call Highlights

Elevra Lithium NASDAQ: ELVR reported stronger pricing, a return to positive underlying EBITDA and a substantially larger cash balance for fiscal 2026, as the company completed the merger of Sayona Mining and Piedmont Lithium and began execution of its North American Lithium, or NAL, brownfield expansion.

Revenue rose 39% to $202 million for the year ended June 30, despite a decline in spodumene concentrate sales volumes. Average realized pricing increased 57% to $1,092 per tonne sold, compared with $694 per tonne in fiscal 2025. The company said the pricing improvement reflected a stronger lithium market as well as changes to legacy offtake arrangements.

“Realized pricing has now moved above NAL's unit operating cost on a ton sold basis,” Managing Director and CEO Lucas Dow said on the company’s results call. He added that the completion of deliveries under a legacy offtake agreement in the June quarter should allow fiscal 2027 pricing to align more closely with prevailing spodumene market prices.

Elevra posted underlying EBITDA of $14 million, compared with an underlying EBITDA loss of $65 million in the prior-year comparable period after adjustments for legacy Piedmont costs. NAL generated underlying EBITDA of $46 million, compared with a $29 million loss a year earlier. The company reported net profit after income tax of $44 million, an improvement of $292 million from fiscal 2025. The result included a $156 million reversal of a NAL impairment, partly offset by $104 million in non-cash merger-related accounting items.

Cash at June 30 totaled $255 million, up from $47 million a year earlier. Elevra subsequently received C$46 million from the first tranche of convertible notes issued to Canada Growth Fund after the fiscal year ended, while Dow said a further C$65 million in convertible-bond proceeds had been received in August. Chief Financial Officer Christian Cortes said operating cash flow usage totaled $44 million, including merger transaction costs and working-capital impacts. NAL generated $3 million of cash by year-end, with cash conversion affected by $32 million in outstanding sales collections and a $15 million inventory increase tied to the transition of port operations. The outstanding prepayment facility balance was reduced to about $38 million during July and August from $55 million at year-end.

NAL produced approximately 198,000 tonnes of spodumene concentrate in fiscal 2026, down 3% from the prior year but within the company’s original guidance range. Sales totaled approximately 181,000 dry metric tonnes, down 13%, due to shipment timing and the transition of port operations. Elevra ended the year with about 41,000 dry metric tonnes of inventory, which it said was largely shipped to customers in July.