Elevra Lithium Posts US$74M Profit as Revenue Climbs 8% in H1 FY26
Elevra Lithium Limited reported an 8% revenue increase and a US$74 million profit for the first half of FY26, driven by higher lithium prices and strategic merger synergies. The company advances its North American Lithium expansion while managing temporary production challenges.
- Revenue up 8% to US$86 million despite 7% production dip
- Profit after tax surges to US$74 million, aided by impairment reversal
- North American Lithium (NAL) produced 96,156 dmt spodumene concentrate
- Merger with Piedmont Lithium delivers US$5 million cost synergies
- Brownfield expansion study supports increased production and lower costs
Operational Performance Amid Market Shifts
Elevra Lithium Limited, trading as ELV on the ASX and ELVR on NASDAQ, has released its half-year results for FY26, showcasing resilience and growth in a volatile lithium market. The company’s flagship North American Lithium (NAL) operation in Québec produced 96,156 dry metric tonnes of spodumene concentrate, a 7% decline from the previous corresponding period due to temporary ore grade variability and higher iron content. Despite this, lithium recovery remained solid at 66%, and plant utilisation was strong at 88%.
Sales volumes were down 20%, primarily due to shipment timing, but this was more than offset by a 34% increase in average realised selling price, lifting revenue by 8% to US$86 million. Elevra’s disciplined operational approach allowed it to capitalise on improving lithium prices, reflecting the company’s leverage to market fundamentals.
Financial Strength and Merger Synergies
The merger between Sayona Mining and Piedmont Lithium, completed in August 2025, has begun to deliver tangible benefits. Cost synergies of US$5 million were realised in just four months, mainly through reduced general and administrative expenses. Underlying EBITDA improved dramatically to US$1 million from a loss of US$25 million in the prior period, while the group posted a profit after tax of US$74 million, boosted by a US$156 million reversal of a prior impairment on NAL assets.
Capital expenditure totalled US$12 million, focusing on sustaining projects such as tailings storage facility upgrades and growth initiatives including the NAL Brownfield Expansion. The company ended the period with a robust cash balance of US$81 million and no secured debt, underpinning financial flexibility.
Growth Projects and Strategic Outlook
Elevra’s growth pipeline remains promising. Updated Mineral Resource and Ore Reserve estimates at NAL and the Moblan Lithium Project have strengthened the company’s resource base, supporting plans to increase production capacity. The NAL Brownfield Expansion Scoping Study outlines a potential increase in annual spodumene concentrate output to 315,000 tonnes at a reduced unit cost, with an accelerated staged development pathway expected to shorten the timeline to full production by about two years.
Elsewhere, progress continues on the Moblan project with a 30% resource increase and a 39% rise in reserves, positioning it as a key future asset. The company is also advancing permitting and stakeholder engagement for its Carolina Lithium project in the US and negotiating revised fiscal terms for the Ewoyaa project in Ghana, reflecting a strategic approach to regulatory and market dynamics.
Corporate Developments and Leadership
Following the merger, Elevra has streamlined its corporate structure, expanded its board with experienced directors from Piedmont Lithium, and appointed Christian Cortes as Chief Financial Officer, bringing over two decades of sector expertise. The company also completed a share consolidation and rebranded to Elevra Lithium Limited, reflecting its new scale and strategic direction.
Management remains confident in the company’s ability to navigate market challenges and capitalise on growth opportunities, emphasising disciplined execution and a strong asset base as key drivers for shareholder value.
Bottom Line?
Elevra’s strategic expansion and merger synergies position it well to benefit from rising lithium demand, but near-term production variability warrants close monitoring.
Questions in the middle?
- How will Elevra mitigate the temporary ore grade challenges at NAL in coming quarters?
- What are the detailed timelines and capital requirements for the accelerated NAL expansion?
- How might evolving regulatory terms in Ghana impact the Ewoyaa project’s development?
