ELVR

• Safety: Total recordable injury frequency rate fell by 67%, marking a significant step-change in safety performance.
• Production: Spodumene concentrate production was approximately 198,000 tonnes, slightly below guidance but within range. Mill utilization remained high at 92%, and recoveries improved to 71% in the June quarter.
• Commercial Strategy: Legacy offtake agreements with price ceilings have been eliminated. Realized pricing now exceeds unit operating costs. A new definitive agreement with Mangrove Lithium includes a floor price of $1,000/tonne C&F with no ceiling.
• Merger & Structure: Completed the merger between Sayona Mining and Piedmont Lithium, creating a larger, more robust entity. Restructured the board and management team, capturing approximately $15 million in synergies in the first 10 months post-merger.
• Strategic Portfolio: Sold interests in the Ewoyaa Project and Tabba Tabba tenement to focus on North American assets. Expanded the Morella Lithium joint venture with additional WA tenements.
• Expansion: Broke ground on the NAL Brownfield Expansion, targeting a multi-stage approach to increase capacity from ~194,000 to ~338,000 tonnes annually and reduce C1 costs to $628/tonne.

• Production: Expected spodumene concentrate production of 198,000 to 210,000 tonnes for FY 2027.
• Sales: Concentrate sales expected between 200,000 and 230,000 tonnes, with modest weighting toward the first half due to inventory.
• Costs: Unit operating costs guided to $880–$950 per tonne sold, higher than FY 2026 due to increased mining intensity and stripping activity for the expansion.
• Capital Expenditure: Total CapEx expected to be $120–$140 million, primarily for the NAL expansion and Moblan studies, with ~$20 million for sustaining capital at NAL.
• Expansion Funding: Total project cost remains at USD 270 million; Stage 2 development work is advancing concurrently in FY 2027.

The company operates primarily through its NAL (North American Lithium) segment. For FY 2026, NAL generated revenue of $202 million, representing a 39% increase from the prior year. This growth was driven by a 57% increase in average realized prices to $1,092 per tonne, which offset a 13% decline in sales volumes (181,000 dry metric tons). NAL delivered an underlying EBITDA profit of $46 million, compared to a loss of $29 million in the prior period. The group-level underlying EBITDA was $14 million, a significant improvement from the prior period loss of $43 million, supported by merger synergies and improved pricing. Corporate expenditures were $30 million, including non-cash hedge losses.

• Trade Tariffs: Potential impact of US-Canada retaliatory tariffs on sourcing strategies for the NAL expansion, though alternate sourcing solutions are available.
• Cost Inflation: Higher unit operating costs in FY 2027 due to temporary increases in strip ratios and mining activity.
• Market Volatility: Lithium prices remain volatile, though demand outlook is strong; reliance on spot market exposure increases sensitivity to price swings.
• Operational Execution: Risks associated with executing the NAL Brownfield Expansion on schedule and within budget, as well as advancing Moblan to Final Investment Decision (FID).
• Regulatory/Permitting: Delays in obtaining final permits for the Carolina Project, particularly air permits.

Q: How should investors think about FY 2027 realized prices and the structure of the new Mangrove offtake agreement? / A: Management confirmed that legacy agreements with price ceilings are gone, effectively exposing Elevra to the spot market linked to spodumene indexes. The definitive agreement with Mangrove Lithium features a floor price of $1,000/tonne C&F with no ceiling, providing downside protection while retaining upside potential. This shift allows the company to capture more value from strengthening lithium markets without the constraints of previous hedging structures.

Q: What is driving the higher unit operating cost guidance for FY 2027 ($880-$950), and how does this relate to the NAL expansion? / A: The increase is principally driven by higher mining activity and an elevated strip ratio (approx. 10% vs 9.1% in FY 26) required to access ore and build inventory for the expansion. This includes deferred stripping costs that were previously capitalized but are now expensed. Management expects this peak in costs to normalize quickly as the mine moves through specific phases and underground stopes are cleared.

Q: What are the key takeaways from the updated scoping study for the Moblan project? / A: The updated study aims to determine the optimal production capacity, likely exceeding the previous DFS target of 300,000 tonnes/year due to a significantly larger resource base. It also seeks to improve capital efficiency based on lessons learned from the NAL expansion. The results are expected in the December quarter, supporting the goal of reducing unit operating costs and increasing revenue through scale.

Q: How is Elevra managing commercial risk and customer diversification post-merger? / A: The strategy targets three core strategic customers with 3-5 year contracts covering roughly 75% of production, ensuring counterparty reliability and growth alignment. Remaining volumes will be sold via spot market or incremental contracts to maintain flexibility and exposure to market upside. This approach balances security against the volatility experienced during previous downturns when relying heavily on spot sales.

Q: What is the status of the NAL expansion financing and execution timeline? / A: The expansion is fully funded with a total capital cost of USD 270 million across three stages. Stage 1 ($70M) is underway with completion expected mid-calendar 2027, leading to a 15-20% production uplift in FY 28. Concurrently, work on Stage 2 ($60M) is advancing in FY 27 to accelerate overall project delivery. The multi-stage approach reduces execution risk and allows faster volume ramp-up.