Elevra Lithium posts $44M profit, secures full funding for NAL expansion

Profit turnaround driven by merger and lithium price surge

Elevra Lithium Limited (ASX:ELV, NASDAQ:ELVR) delivered a transformational FY26, reporting a $44 million profit after tax compared to a $247 million loss in FY25. This turnaround was underpinned by the successful merger of Sayona Mining and Piedmont Lithium, which created a leading North American lithium producer with a strengthened balance sheet and operational scale.

Revenue rose 39% to $202 million, buoyed by a 57% increase in average realised spodumene concentrate prices to $1,092 per dry metric tonne (FOB). Despite a 13% decline in sales volumes, largely due to shipment timing and legacy contract deliveries, the improved pricing environment and merger synergies drove underlying EBITDA to a positive $14 million from a prior loss of $43 million.

Operational resilience amid temporary mining challenges at NAL

North American Lithium (NAL), Elevra’s cornerstone asset in Québec, mined a record 1.47 million wet metric tonnes of ore, a 14% increase year-on-year, and processed 1.40 million dry metric tonnes. Spodumene concentrate production was slightly down 3% to 198,000 tonnes, impacted by temporary adverse mining conditions in the first half of the year related to historical underground workings and lower ore grades.

The operations team responded swiftly with disciplined mine planning, increased mining activity, and ore blending strategies that improved recoveries and plant utilisation, which averaged 91% for the year. The June quarter marked the strongest operational performance with recoveries reaching 71% and monthly production hitting a record 22,202 tonnes in May.

Unit operating costs per tonne sold increased marginally by 2% to $853, reflecting inflationary pressures and the higher strip ratio as mining transitioned into Phase 3, which involves more waste movement. Despite this, the operation maintained cost discipline within revised guidance.

Fully funded NAL Brownfield Expansion set to boost capacity and reduce costs

Elevra advanced its growth strategy with a fully funded staged expansion of NAL. The Updated Scoping Study released in May 2026 outlined a phased approach to increase annual spodumene concentrate production capacity to approximately 338,000 tonnes, leveraging existing infrastructure and operational expertise. Stage 1, already underway following a June 2026 groundbreaking, is expected to deliver a 15-20% production increase by mid-calendar 2027.

The expansion is supported by a $202 million capital raise and a $102 million convertible notes investment from the Canada Growth Fund, providing financial flexibility to progress the broader growth portfolio including the Moblan Lithium Project.

Portfolio optimisation through Ewoyaa divestment and exploration progress

In line with its strategic focus on North America, Elevra agreed to divest its 22.5% interest in the Ewoyaa Lithium Project in Ghana for approximately $71 million, subject to regulatory approvals. This transaction, expected to close in Q1 FY27, will strengthen the balance sheet and simplify the company’s operational structure.

Exploration efforts continued in Québec and Western Australia, with significant resource upgrades at Moblan (121 million tonnes at 1.19% Li2O) and completion of the purchase and termination of legacy offtake agreements, enhancing commercial flexibility. In Western Australia, Elevra sold its Tabba Tabba pegmatite rights to Wildcat Resources for $16 million plus royalties, and expanded its Morella Lithium Joint Venture footprint through an indicative term sheet with Morella Corporation.

Governance, sustainability and workforce development

Post-merger, Elevra reconstituted its Board, appointing four new independent Non-Executive Directors and increasing female representation to 37.5%. The company reported a 67% reduction in Total Recordable Injury Frequency Rate (TRIFR) to 6.93, reflecting a strengthened safety culture and operational discipline.

Elevra emphasised sustainability with initiatives such as biodiversity conservation projects, water and waste management, and carbon intensity assessments. The workforce grew to 246 employees globally, with a focus on local hiring in Québec and improved diversity and inclusion programs.

Financial statements reflect $156 million impairment reversal at NAL

The FY26 financials include a $156 million reversal of prior impairment on NAL assets, driven by improved lithium market conditions and the elimination of legacy offtake contract impacts post-merger. This reversal significantly boosted asset values and contributed to the positive earnings result.

Elevra ended FY26 with $255 million in cash, a 440% increase from the prior year, providing ample liquidity to execute growth plans. The company’s net assets more than doubled to $727 million.

What to watch next

Investors should monitor execution progress of the NAL Brownfield Expansion, particularly Stage 1 delivery and cost control. The completion of the Ewoyaa divestment and regulatory approvals will be key balance sheet milestones. Market pricing dynamics remain volatile; how Elevra navigates legacy contract transitions and captures spot pricing upside will be critical. Finally, progress at Moblan and Carolina Lithium projects will shape longer-term growth prospects.

With a strengthened platform, diversified asset base and disciplined capital management, Elevra Lithium is positioned to benefit from sustained lithium demand growth amid the global energy transition, but operational and market uncertainties warrant close attention.