Elevra Lithium Sets Monthly Production Record and Secures US$298M Financing

Record Production and Operational Gains at North American Lithium

Elevra Lithium Limited (ASX:ELV; NASDAQ: ELVR) delivered a standout quarter at its North American Lithium (NAL) mine in Québec, setting a new monthly production record of 22,202 dry metric tonnes (dmt) of spodumene concentrate in May 2026. This contributed to a 15% quarter-on-quarter rise in quarterly concentrate production to 54,479 dmt at an average grade of 5.0% lithium oxide, marking the second-best quarter on record.

The operation maintained a strong mill utilisation rate of 92%, just shy of the record set in March, despite a planned major shutdown in April. Lithium recoveries improved by 5 percentage points to 71%, boosted by optimisation initiatives and superior crushing plant performance. Ore mined was stable at 372,938 wet metric tonnes, aligned with processing requirements.

Legacy Contract Weighs on Sales Revenue

Despite operational gains, NAL sales revenue plummeted 61% quarter-on-quarter to US$31 million. This steep decline stemmed from a 39% drop in tonnes sold to 33,977 dmt and a 37% fall in the average realised selling price to US$921/dmt. The subdued pricing reflected deliveries under a legacy offtake contract with a lagged pricing mechanism linked to historical lithium hydroxide prices. Elevra confirmed that all obligations under this contract were fulfilled during the quarter, paving the way for future pricing to better mirror spot spodumene prices.

Unit operating costs edged up 3% to US$907 per tonne sold, primarily due to the release of higher-cost inventory following the timing of the April plant shutdown and sustained mining intensity. Controllable costs rose in line with increased concentrate production, with mining and processing costs up 13% and 27% respectively.

Strategic Financing Package Fuels Growth Ambitions

Elevra secured a US$298 million Strategic Financing Package that fully funds the staged NAL Brownfield Expansion and advances the Moblan project towards a Final Investment Decision. The package combines a US$196 million institutional placement and US$102 million in convertible notes from the Canada Growth Fund (CGF), with US$46 million from the upfront tranche expected in Q3 2026 following shareholder approval. A further US$80 million conditional tranche awaits future approval and conditions.

The financing milestone allowed the company to officially break ground on the NAL Expansion and place key equipment orders, reducing schedule risk. The expansion’s updated scoping study projects a more than doubling of incremental post-tax net present value to C$969 million, while maintaining capital expenditure at C$366 million. This staged approach accelerates production growth by two years and aims to lower unit operating costs, reinforcing Elevra’s position as a leading North American lithium supplier.

Portfolio Streamlining and Project Development Progress

Elevra agreed to sell its interest in the Ewoyaa Project in Ghana to Zhejiang Huayou Cobalt for approximately US$71 million in cash, a move designed to sharpen focus on core North American assets and reduce future funding obligations. The transaction is expected to complete in Q3 2026.

Meanwhile, the company advanced environmental baseline studies and permitting for Moblan, having recently acquired full control of its spodumene concentrate offtake rights by purchasing those held by Waratah Capital Advisors. Work also continued on the Carolina Lithium Project in North Carolina, with ongoing air permit progress and stakeholder engagement.

Strong Cash Position Supports Next Steps

Elevra closed the quarter with a cash balance of US$255 million, a sharp increase from US$113 million in March 2026, excluding proceeds from the Ewoyaa sale and convertible note drawdowns. Net cash stood at US$200 million after accounting for a US$55 million prepayment facility. The company reported a modest US$6 million net cash outflow at the corporate level during the quarter, with NAL generating a US$1 million profit from operations despite working capital headwinds.

Looking ahead, Elevra plans to provide FY27 guidance with its full-year results in late August 2026, while continuing to advance permitting and construction activities across its growth projects.