Lithium Royalty (LIRC) Q1 2025 earnings summary

Executive summary

• Q1 2025 royalty revenue remained flat year-over-year at $629,000 despite a 17% drop in spodumene prices, reflecting portfolio resilience and outperformance versus the broader lithium price index.

• Net loss for Q1 2025 was $870,000, an improvement from $1.05 million in Q1 2024.

• Strong cash position of $32 million and no debt, supporting future royalty acquisitions and share repurchases.

• Portfolio maturity and low cost base position the company well for various market environments, with new projects entering production and expansions on track.

• Key assets advancing include Sigma Lithium (phase two), Ganfeng's Mariana project, and Atlas Lithium's DMS plant.

Financial highlights

• Royalty revenue was $629,000 in Q1 2025, unchanged from $631,000 in Q1 2024.

• Adjusted EBITDA loss of $1.1 million, compared to a $662,000 loss in Q1 2024, with EBITDA at $(1.01) million, improved by 11% year-over-year.

• Net loss was $870,000 in Q1 2025, improved by 17% from prior year.

• G&A expenses were $2 million, up from $1.7 million, with $158,000 in non-recurring SIB-related costs.

• Cash at quarter-end was $32 million, with no debt.

Outlook and guidance

• Expecting revenue from Ganfeng's Mariana project in H2 2025 and from Sigma's phase two expansion.

• Additional catalysts include Atlas Lithium's Das Neves development, Core Lithium Finniss restart study in Q2 2025, and Power Metals' Case Lake PEA in 2Q25.

• Anticipates continued strong demand for lithium, with EV and energy storage growth projected at 25%-30% per year.

• Zijin's Tres Quebradas project on track for production in 3Q25; cesium production at Case Lake targeted for 3Q26.

• Atlas Lithium's Das Neves DFS anticipated mid-2025; Sayona's Moblan resource update expected by August 2025.