ELVR

Elevra Lithium Ltd: Q1 FY26 Quarterly Activities Report Summary

Business Context and Reporting Period

This Form 6-K covers the quarter ended September 30, 2025 (Q1 FY26). The reporting period was defined by the completion of the merger between Sayona Mining Limited and Piedmont Lithium Inc. on August 30, 2025, resulting in the formation of Elevra Lithium Limited. The company executed a 150-to-1 share consolidation and completed a $69 million capital placement. Elevra operates the North American Lithium (NAL) mine in Quebec, Canada, and holds growth projects in Moblan (Canada), Ewoyaa (Ghana), and Carolina Lithium (USA).

Key Financial and Operational Metrics

Material Changes vs. Prior Period

• Revenue Decline: Revenue dropped 56% QoQ primarily due to a strategic decision to weight sales toward the December quarter to capture higher forward prices. Sales volumes were deliberately reduced by 61%.
• Price Realization: Despite lower volumes, the average realized selling price increased 14% QoQ to $1,198/dmt, driven by improved spot market conditions and forward sales strategies.
• Production Variance: Spodumene production fell 11% QoQ to 52,003 dmt. This was caused by a 6% decline in mill utilization (87%) due to planned maintenance and minor unplanned downtime (power/PLC issues), alongside a 4% drop in recovery rates due to lower feed grade and higher iron content.
• Liquidity Surge: Cash and cash equivalents increased by $76.5 million to $148.8 million. This was driven by $69 million raised via share issuance and $52 million in cash acquired from Piedmont Lithium at merger closing, offset by operating outflows and transaction costs.
• Cost Structure: Unit operating costs per tonne sold rose slightly by 1% to $1,250/dmt, attributed to lower sales volumes spreading fixed costs and higher mill costs during planned shutdowns.

Guidance, Outlook, and Management Commentary

• FY26 Guidance Reaffirmed:
  • Production: 195,000–210,000 dmt.
  • Sales: 195,000–210,000 dmt.
  • Unit Operating Costs: $1,175–$1,275/dmt (AUD).
• NAL Expansion: A Scoping Study outlines a pathway to expand NAL capacity by 55% (to 315ktpa) and reduce unit costs by ~30% to ~$562/dmt (USD). The project has a post-tax NPV of $950 million (USD) and a 26.4% IRR. A Final Investment Decision is targeted for H2 2027, with first production in 2029.
• Growth Projects:
  • Moblan: Mineral Resource Estimate increased by 30% to 121.0 million tonnes @ 1.19% Li2O.
  • Ewoyaa: Fiscal term negotiations with the Ghanaian government are ongoing; project advancement is contingent on lease ratification.
  • Carolina Lithium: Permitting progress continues, supported by favorable U.S. policy on critical minerals.
• Safety: The quarter recorded the best safety performance since 2023, with 40 consecutive "Triple Zero" days and no lost-time injuries.

Investor Verification Checklist

• Verify the timing and volume of the planned sales uplift in the December quarter to ensure alignment with the higher forward pricing strategy.
• Monitor the resolution of the Ewoyaa Mining Lease fiscal terms with the Ghanaian government, as this is a key contingency for project advancement.
• Track the progress of the NAL Expansion permitting and the timeline for the Final Investment Decision (targeted H2 2027).
• Confirm the stability of mill utilization and recovery rates in upcoming quarters following the identified and corrected unplanned downtime issues.
• Review the integration of Piedmont Lithium's assets and the realization of synergies from the merger.