Lithium Royalty (LIRC) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined 39% year-over-year, mainly due to a 59% drop in spodumene prices, while full-year revenue fell 45% compared to a 71% decline in lithium chemical prices.

• Achieved 81% year-over-year growth in Lithium Carbonate Equivalent Tonnes (LCEts) in 2024, with annual revenue of $3.0 million, despite lower realized prices.

• Revenue outperformed lithium price indices due to volume growth at Sigma Lithium and portfolio diversification.

• The company maintains a strong balance sheet with no debt and $7.2 million in cash at year-end, further bolstered by a $28 million inflow from the partial sale of the Tres Quebradas royalty.

• Multiple portfolio assets are progressing toward production, with significant ramp-ups expected in 2025 and 2026, including Sigma Lithium, Ganfeng's Mariana, and Zijin's Tres Quebradas.

Financial highlights

• Royalty revenue for 2024 was $3.0 million, down 45% year-over-year; Q4 2024 revenue was $621,000, up from $224,000 in Q3 but down from $1 million in Q4 2023.

• Adjusted EBITDA loss was $2.5 million in 2024, compared to a $306,000 loss in 2023; Q4 adjusted EBITDA loss was $877,000.

• Net loss for 2024 was $2.7 million, an improvement from a $5.0 million loss in 2023.

• G&A expenses were $1.6 million in Q4, down from $2.3 million year-over-year; annual G&A was $6.3 million, down from $8.7 million.

• Cash balance at year-end 2024 was $7.2 million, with no debt.

Outlook and guidance

• Expectation of additional revenue streams from new projects entering production in 2025 and 2026, including Ganfeng's Mariana, Zijin's Tres Quebradas, and Sigma's phase II expansion.

• Sigma Lithium targets 300,000 tonnes of spodumene concentrate in 2025 and 520,000 tonnes in 2026, with Phase II commissioning in 4Q25.

• Anticipates strong demand growth for lithium, led by EV adoption and energy storage, with forecasts for EV sales to grow by 30% in 2025.

• Company remains selective, focusing on cash-flowing or near-term cash flow opportunities for new royalty acquisitions.

• Ganfeng's Mariana project and Atlas Lithium's Das Neves facility to support future royalty streams.