Elevra Lithium (ELV) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in the December 2024 quarter, with NAL nearing operating cash break-even and record sales volumes; ore mined up 54% quarter-on-quarter to 370,409 wmt and mill utilization at 90% despite planned shutdowns and weather challenges.

• Merger with Piedmont signed, creating a leading lithium producer with a robust balance sheet, operational synergies, and a 50/50 equity split.

• Drilling at NAL and Moblan confirmed significant resource expansion potential, supporting future growth.

• Spodumene concentrate production was 50,922 dmt at 5.3% grade, down 2% QoQ but in line with forecasts; sales reached a record 66,035 dmt, up 35% QoQ.

• NAL approached cash break-even from operating activities, with improved safety performance.

Financial highlights

• Revenue rose 33% quarter on quarter to AUD 70 million, driven by a 35% increase in spodumene sales to 66,000 tons.

• Average realized selling price was AUD 1,054 per ton, down 1% quarter on quarter due to pricing lags.

• Unit operating costs declined 6% quarter on quarter to AUD 1,258 per ton sold, and over 16% year-over-year.

• Cash balance increased to AUD 110 million, supported by AUD 38 million in capital raised and offset by AUD 15 million exploration and AUD 7 million capex.

• NAL loss from operations was AUD 13 million, in line with the prior quarter, as higher sales volumes and lower unit costs offset market price declines.

Outlook and guidance

• FY 2025 production guidance reaffirmed at 190,000–210,000 tons of spodumene, with unit operating costs targeted at AUD 1,150–1,300 per ton.

• No major exploration at NAL or Moblan planned for the next 18 months; focus shifts to digesting results and updating resource estimates.

• Ongoing optimization and cost reduction projects at NAL, with further recovery improvements expected from new real-time analyzers.

• Exploration and drilling programs in Canada and Australia are set to continue, with new targets identified for 2025.

• Focus remains on improving efficiencies, expanding resources, and completing the merger with Piedmont Lithium.