Elevra Lowers FY2026 Guidance as Operational Hurdles Hit NAL Output

Operational Highlights at North American Lithium

Elevra Lithium Limited (ASX – ELV) delivered a standout performance in the December 2025 quarter, posting record revenue and gross profit at its flagship North American Lithium (NAL) mine in Québec, Canada. Despite a 15% increase in ore mined quarter-on-quarter, spodumene concentrate production fell by 15% to 44,154 dry metric tonnes, primarily due to lower lithium recovery rates linked to higher iron content and reduced feed grade in the ore.

Mill utilisation improved modestly to 89%, and the company achieved a 27% jump in average realised selling price to US$998 per dry metric tonne, reflecting robust lithium market fundamentals. These factors combined to generate a quarterly revenue of US$66 million, a new record for the operation.

Challenges Prompt Revised Guidance

Operational challenges at NAL, including the impact of mining adjacent to historical underground workings, have led Elevra to revise its FY2026 production and sales guidance downward. The company now forecasts spodumene concentrate production between 180,000 and 190,000 tonnes, down from prior guidance of 195,000 to 210,000 tonnes. Unit operating costs are expected to rise slightly to between US$860 and US$880 per tonne, reflecting additional short-term expenditures on grade control drilling and ore blending initiatives designed to improve recovery rates.

Management emphasises that these conditions are temporary and not representative of the broader life-of-mine orebody. Increased grade control drilling density and improved ore blending strategies are underway to mitigate the effects of high iron content and enhance operational efficiency.

Growth and Expansion Plans Accelerate

In parallel with managing near-term operational issues, Elevra is advancing its growth projects. The company announced an accelerated, phased expansion plan for NAL, aiming to increase annual spodumene concentrate production by 15-20% by mid-2027 while reducing unit operating costs. This approach leverages recent permitting progress and technical studies to de-risk execution and fast-track value creation.

Elsewhere, development activities continue at the Moblan Lithium Project, Ewoyaa in Ghana, and the Carolina Lithium project in North Carolina, USA. Notably, Carolina Lithium secured key environmental permits during the quarter and engaged with local and federal stakeholders to position the project within the US domestic lithium supply chain, underscoring its strategic importance amid global energy transition efforts.

Corporate and Financial Updates

Elevra’s cash balance stood at US$81 million at quarter-end, after merger-related payments and advisory fees. The company appointed Christian Cortes as Chief Financial Officer, bringing extensive sector experience to support operational focus and growth initiatives. All resolutions at the recent Annual General Meeting were passed, including the election of four former Piedmont directors, reflecting ongoing integration following the Sayona-Piedmont merger.

Despite short-term operational headwinds, NAL generated a net operating cash inflow of US$13 million for the quarter, highlighting the resilience of the business model and its leverage to improving lithium prices. Merger-related cost synergies remain on track, with further updates expected in the upcoming half-year results.

Looking Ahead

Elevra’s management remains optimistic about the lithium market’s trajectory and the company’s strategic positioning. The combination of operational discipline, targeted expansion, and a diversified project portfolio across North America, Ghana, and Australia positions Elevra to capitalise on rising demand for lithium, a critical mineral underpinning the global energy transition.