Elevra Lithium executives used the company’s FY2026 half-year earnings call to outline production and financial performance at its North American Lithium (NAL) operation, discuss integration progress following the merger between Sayona Mining (ASX:SYA) and Piedmont Lithium, and provide an update on growth projects and market conditions.
Half-year production and sales: stable operations, temporary mining challenges
Managing Director and CEO Lucas Dow said the company produced about 96,000 tons of spodumene concentrate in the first half of FY2026 and sold approximately 92,000 tons. CFO Christian Cortes specified NAL production of 96,156 dry metric tons for the half, down 7% versus the prior corresponding period, with sales volume of 91,991 dry metric tons across three customer parcels.
Despite lower output, Dow said NAL generated $5 million in operating cash flow during the half and recorded its “best safety performance delivered to date.”
Revenue rose on higher realized prices; EBITDA improved to positive
Elevra reported revenue of $86 million, an 8% increase, and ended December with $81 million in cash, according to Dow. Cortes said revenue rose despite lower sales volumes because the average realized selling price increased 34% to $937 per dry metric ton (FOB), which he linked to improved market conditions and lithium prices rising to multi-year highs.
On costs, Cortes said unit operating costs per ton sold were $814 per dry metric ton, down 6% year over year. However, excluding inventory movements, unit costs per ton produced were $831 per dry metric ton, up 14%, driven by lower production as well as increased stripping and processing costs.
At the group level, Elevra posted underlying EBITDA of $1 million, compared with a $25 million loss in the prior period. Cortes said NAL delivered $11 million of underlying EBITDA in the half, versus a $19 million loss previously, helped by the removal of a legacy offtake agreement after the merger, enabling market-aligned pricing and delivering $1 million of logistics cost synergies.
Corporate expenditure was $9 million in the half, including four months of legacy Piedmont costs, and Cortes said this was $4 million lower than the prior comparable period on a restated basis, reflecting overhead reductions after combining the legacy companies.
Merger integration: synergies, reporting changes, and balance sheet impacts
Management emphasized that the December 2025 half-year results reflected a partial-period combination: six months of legacy Sayona and four months of legacy Piedmont following merger completion at the end of August 2025. Cortes also noted Elevra changed its reporting currency from Australian dollars to U.S. dollars during the half, and prior periods were restated for comparability.
Dow said the company generated $5 million in synergies in the four months post-merger and remained on track to achieve more than $15 million in annual recurring savings. Cortes later described the annualized synergy target as $15 million to $20 million, with most expected from corporate cost reductions.
On cash flow, Cortes said the group used $28 million in operating activities during the period. This included $5 million of operating cash generated by NAL, offset by $24 million of cash outflows tied to combined merger transaction costs (including Piedmont-related costs accrued before completion and subsequently paid by Elevra), and $9 million of corporate-related outflows outside NAL. Cash increased to $81 million from $47 million at the start of the half year, supported by $44 million of equity placement proceeds and by cash contributed by Piedmont on completion.
Net assets rose to $565 million at the end of December from $311 million at the end of June. Cortes cited contributions from Piedmont ($58 million of net assets), the $44 million placement, and a $156 million impairment reversal at NAL, which he said reflected higher expected future sales prices following elimination of the legacy offtake agreement.
Asked about the impairment reversal, Cortes said the reversal excluded assets that had previously been impaired and included only operating assets, net of depreciation that would have been recorded if they had remained at their prior gross carrying value. He added that depreciation and amortization could change depending on useful-life reassessments, including if equipment is replaced sooner under expansion plans.
Resources, expansion plans, and project pipeline updates
Dow said Elevra increased mineral resources and ore reserves at NAL and Moblan during the half. At NAL, he said reserves increased 124%, supporting a brownfield expansion scoping study released in mid-September. At Moblan, after incorporating results from a 2024 drill program, Dow said the mineral resource estimate increased 30% to 120 million tons at a grade of 1.19%, with the majority in the indicated category.
The NAL expansion remained the company’s near-term growth priority. Dow summarized the September 15 scoping study as targeting life-of-mine annual production of 315,000 tons of concentrate per year, a reduced C1 unit cost of $630 per ton, and estimated capital cost of $270 million. He said new permitting information received since the study was completed supported an “accelerated approach” using staged delivery, with an initial 15%–20% production increase before reaching the 315,000-ton nameplate level. Management said additional details would be provided with an updated scoping study next quarter.
In Q&A, Dow said the first phase is intended to deliver the incremental 15%–20% volume during calendar year 2027, with subsequent stages in 2028 and 2029. He said it was unlikely the expansion could be accelerated significantly further than the updated schedule already achieved.
Outside NAL, Dow said environmental baselining and study work at Moblan had commenced and that greenfield projects of that size historically require at least five years of permitting; he said the company’s base plan assumed that timeframe. He also said the company expects to undertake an economic study on Moblan during the second half of the current calendar year based on the larger resource base.
On Ewoyaa, Dow said there was “really nothing to report” and referenced a recent Atlantic Lithium update indicating no additional news on the project’s ratification process. Regarding Authier, Dow said the company viewed the project positively from a technical standpoint but described challenges under the existing JV structure that could make it “difficult” to justify capital, adding that discussions with Atlantic were ongoing. On the Carolina project, Dow said advancing it meaningfully would require a technical partner with downstream conversion expertise and an appropriate balance sheet; in the meantime, the company was progressing permitting and rezoning activities.
Market and offtake: price volatility and destination mix
Dow said spodumene prices rose sharply during the period after bottoming in mid-2025, and he linked the rebound to strong demand heading into calendar year 2027. He said the company expected lithium demand to double over the remainder of the decade, while also noting lithium remains an “immature” market prone to volatility. He said Elevra’s approach is to remain disciplined and continue producing through low-price periods to be positioned to benefit from stronger pricing.
On marketing and customer destinations, Cortes said that of the three shipments delivered during the half year, one went to the U.S. and the remaining shipments went to China. He said he expected a similar split for the remainder of the financial year. Cortes added that, while the company would prefer to support customers in the Americas, limited conversion capacity outside China means most conversion demand is still in China, though he said Elevra expects to be well placed to serve the region as capacity grows.
Asked about Rio Tinto’s recently announced plans for Bécancour, Cortes said the company’s understanding from Rio’s announcement was that first production is estimated in 2028, suggesting no near-term supply opportunity, though he said it could make sense to explore supplying feedstock if timelines change. He also referenced Mangrove’s ambition to build conversion capacity in the region, noting Elevra has a previously announced non-binding MOU.
Looking ahead, Dow said the company remained on track to deliver within the guidance ranges previously provided in its December quarterly results.
About Sayona Mining (ASX:SYA)
Sayona Mining Limited, together with its subsidiaries, engages in mineral identification, acquisition, exploration, and development in Australia and Canada. It explores for lithium, graphite, and gold deposits. Its flagship property the North American Lithium project comprises 19 contiguous claims covering an area of 582.31 and one mining lease covering approximately an area of 700 hectares located in Quebec, Canada. The company was formerly known as DiamonEx Limited and changed its name to Sayona Mining Limited in May 2013.
