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.
Financial position strengthens after financing and merger
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 production improves in second half
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.
Temporary mining conditions during the first half affected ore feed characteristics, including higher iron content and lower lithium grades. The company increased mining activity to provide greater ore-blending flexibility while maintaining high mill utilization.
Recoveries rose to 71% during the June quarter, the highest level achieved during fiscal 2026, while mill utilization reached 92%. Elevra also said its total recordable injury frequency rate declined 67% during the year, with improvements across medical-aid, modified-duty and lost-time injury categories.
Unit operating costs were $853 per dry metric tonne sold, up 2% from the prior year. Cortes attributed the increase primarily to elevated mining and stripping activity needed to maintain ore access and improve mill feed.
Expansion moves into execution
Elevra broke ground on the NAL brownfield expansion at the end of June after completing scoping studies and securing financing. The company selected a multistage development approach, saying it would allow faster production growth and reduce execution risk.
The first stage will focus on debottlenecking the mill to support operations at the upper end of its existing permitted rate of 4,500 tonnes per day. The ultimate plan is to expand milling capacity to 6,500 tonnes per day, lifting average annual spodumene concentrate capacity from approximately 194,000 tonnes to about 338,000 tonnes. Elevra expects the expanded operation to reduce life-of-mine average C1 costs to $628 per tonne.
Dow said stage one is expected to be completed by the middle of calendar 2027 and should provide a production uplift of roughly 15% to 20%, with the higher volumes expected to begin flowing through in fiscal 2028. Total capital for all three expansion stages remains estimated at $270 million, including roughly $70 million for stage one, $60 million for stage two and $140 million for the final stage.
The company said it is reviewing potential effects from tariffs following a breakdown in Canada-U.S. trade negotiations, but expects alternative sourcing options to be available if U.S.-based procurement becomes more expensive. Dow said the company’s preliminary assessment indicates tariffs should not have a significant adverse effect on the overall NAL expansion cost.
Commercial strategy and fiscal 2027 outlook
Elevra finalized an agreement with Mangrove Lithium to supply concentrate from NAL. The agreement includes a floor price of $1,000 per tonne of SC6 concentrate and no price ceiling, although supply is not expected to begin for four to five years. Cortes said the company sees Mangrove as a potential regional partner that could lower logistics costs and support development of a Canadian lithium chemical supply chain.
The company plans to transition toward a sales portfolio with approximately three core offtake customers, market-based spodumene pricing and contract terms of three to five years. Elevra is targeting contracts for about three-quarters of production, retaining remaining volumes for allocation to existing customers or spot markets.
- Fiscal 2027 spodumene concentrate production guidance: 198,000 to 210,000 tonnes.
- Fiscal 2027 sales guidance: 200,000 to 230,000 tonnes.
- Fiscal 2027 unit operating cost guidance: $880 to $950 per tonne sold.
- Fiscal 2027 capital expenditure guidance: $120 million to $140 million, including about $20 million of sustaining capital at NAL.
Elevra said higher expected fiscal 2027 unit costs reflect continued mining intensity, inventory building for the expansion and mining through remaining historical underground workings. The company also expects to release an updated Moblan scoping study during the December quarter, evaluating a production rate above the 300,000 tonnes per year contemplated in the prior definitive feasibility study.
About Elevra Lithium (NASDAQ:ELVR)
Elevra Lithium Limited, together with its subsidiaries, engages in the identification, acquisition, exploration, and development of mineral assets in Australia and Canada. The company explores for lithium, graphite, and gold deposits. Its flagship property includes the North American Lithium project that consists of 41 claims and one mining lease covering an area of approximately 1,493 hectares located in Quebec, Canada. The company was formerly known as Sayona Mining Limited and changed its name to Elevra Lithium Limited in August 2025.
