Elevra Lithium Sets New Monthly Production Record and Secures $298M Strategic Financing to Accelerate North American Growth

North American Lithium Achieves Record Production and Operational Excellence

During the June 2026 quarter, Elevra Lithium's North American Lithium operation delivered outstanding results, setting a new monthly spodumene concentrate production record of 22,202 dry metric tonnes in May 2026. This achievement was supported by peak plant utilisation of 98% and lithium recoveries of 73%, driven by consistent operational execution, robust crushing plant performance, and targeted processing circuit optimisations. These sustained operational improvements highlight management’s ability to maximise value from existing infrastructure.

For the full quarter ending June 2026, spodumene concentrate production totaled 54,479 dry metric tonnes at an average grade of 5.0%, reflecting a 15% increase quarter-on-quarter and the second-best quarterly output on record. Despite a planned shutdown, process plant utilisation remained high at 92%. Lithium recoveries improved 5% quarter-on-quarter to 71%, benefiting from optimisation initiatives and enhanced feed quality management. The company mined 372,938 wet metric tonnes of ore, maintaining steady mining rates aligned with processing needs. Safety performance was exemplary, with zero lost-time injuries, underscoring strong risk management and operational discipline.

Legacy Offtake Contract Pricing Impacts June Quarter Revenue

Despite robust production, Elevra’s revenue in the June 2026 quarter was materially affected by a legacy multi-year offtake agreement with a lagged pricing mechanism. The company sold 33,977 dry metric tonnes of spodumene concentrate at an average realized price of US$921 per dry metric tonne FOB, generating US$31 million in revenue. This represented a 39% quarter-on-quarter decline in tonnes sold and a 37% decrease in average price per tonne due to pricing linked to historical lithium market levels rather than current spot prices. Recent lithium price increases were not fully reflected under this legacy contract.

Elevra confirmed all obligations under this legacy contract have been fulfilled. Moving forward, pricing from fiscal 2027’s first quarter is expected to better reflect spodumene spot prices, potentially enhancing realized revenues if lithium market conditions remain strong. Unit operating costs per tonne sold FOB were US$907, a 3% increase from US$884 the previous quarter, primarily due to higher cost inventory release following a planned major plant shutdown in April and sustained mining intensity. Capital expenditure for the quarter totaled US$4 million, covering sustaining capital projects and the NAL Expansion Scoping Study.

Strategic Financing Package Enables Full Funding of NAL Expansion and Moblan Advancement

In May 2026, Elevra announced a comprehensive Strategic Financing Package totaling US$298 million to fully fund the NAL Expansion and support the Moblan lithium project’s progression toward a final investment decision. The package includes a US$196 million institutional placement (approximately A$275 million), US$102 million in Canada Growth Fund Convertible Notes issued in two tranches, and an US$11 million retail share purchase plan for eligible shareholders. The institutional placement and retail plan were completed during the quarter, while shareholders approved the upfront tranche of Convertible Notes (~US$46 million or C$65 million) at an Extraordinary General Meeting on 16 July 2026, with proceeds expected in Q3 2026.

This financing structure reflects strong investor confidence in Elevra’s growth strategy and operational performance. The company plans to seek shareholder approval for a further C$80 million conditional tranche of Convertible Notes. The package eliminates immediate funding constraints and enables execution of expansion plans without near-term equity dilution beyond the completed institutional placement. The two-tranche approach for convertible notes provides capital deployment flexibility aligned with project milestones and market conditions. Management described this financing as a defining achievement, positioning Elevra for its next growth phase.

Updated NAL Expansion Scoping Study Accelerates Timeline and Enhances Project Economics

Elevra released an Updated Scoping Study in May 2026 for the NAL Expansion featuring a staged development approach that delivers significant operational and financial benefits while containing capital expenditure. This approach accelerates production growth by two years compared to other scenarios and more than doubles the incremental post-tax net present value at an 8% discount rate to C$969 million, while maintaining capital expenditure at C$366 million. The improved economics reflect optimized development phasing and enhanced operational cost insights from earlier project phases.

The company marked a major milestone in June 2026 with the official groundbreaking of the fully funded NAL Expansion, transitioning from planning to execution. Key equipment orders for long-lead items have been placed to mitigate schedule risks. The staged expansion will bring additional production capacity online in phases, enabling the company to meet growing market demand while managing capital deployment and operational ramp-up. Accelerating production growth by two years is particularly impactful amid expected continued lithium demand expansion. Maintaining capital expenditure at C$366 million while substantially improving project economics demonstrates operational efficiencies and effective phasing.

Acquisition of Full Moblan Offtake Rights and Environmental Progress

During the quarter, Elevra acquired the spodumene concentrate offtake rights held by an investment vehicle managed by Waratah Capital Advisors, gaining 100% control over its 60% pro rata offtake entitlement from the Moblan project. This consolidation strengthens Elevra’s commercial position at Moblan and removes constraints on realizing full value from the project’s production. Full ownership of offtake rights allows direct control over sales terms, pricing, and customer relationships for its share of production.

Elevra advanced environmental baseline studies and initiated preparations for an updated Moblan Scoping Study, foundational steps for permitting and project financing. These efforts support advancing Moblan toward a final investment decision, backed by the Strategic Financing Package. Holding 60% of production positions Elevra as a cornerstone stakeholder with significant influence over project governance and development.

Carolina Lithium Project Regulatory Engagement and Development

Elevra actively engaged with regulatory authorities and local stakeholders on the Carolina Lithium project in North Carolina during the quarter. Progress was made on the air permit application with the North Carolina Division of Air Quality, a critical regulatory milestone for project development. The company also met with local county leadership to provide updates and reinforce its commitment to responsible, sustainable development. These activities demonstrate Elevra’s focus on regulatory compliance and community relations as the project advances.

The Carolina Lithium project represents a longer-term growth opportunity in the North American lithium market. The focus on air permitting and stakeholder engagement indicates systematic advancement of regulatory pathways and community acceptance. These efforts underscore the project’s strategic importance and Elevra’s intent to establish it as a future growth pillar alongside its existing North American Lithium operations.

Divestment of Ewoyaa Project Interest to Streamline Portfolio

Elevra agreed to sell its interest in the Ewoyaa Project in Ghana to Zhejiang Huayou Cobalt Co., Ltd. for approximately US$71 million in cash, subject to completion and prior to fees. The transaction is expected to close in Q3 2026. This strategic divestment streamlines Elevra’s growth portfolio and eliminates future funding obligations related to the Ghanaian asset. Proceeds will enhance financial flexibility and support capital allocation toward the NAL Expansion and Moblan development.

The sale reflects a strategic reassessment of project priorities considering capital availability and management focus. Exiting Ewoyaa allows Elevra to concentrate resources on North American projects where it has operational expertise. Removing future funding commitments for the Ghana project reduces capital requirements and simplifies corporate structure. The transaction provides a significant cash inflow amid ongoing capital programs, offering a buffer against commodity price fluctuations and project cost risks.

Strong Cash Position and Balance Sheet Support Growth Execution

At June 2026 quarter-end, Elevra held US$255 million in cash, boosted by proceeds from the institutional placement and retail share purchase plan completed during the period. Net cash, after accounting for a US$55 million prepayment facility, stood at US$200 million, up from US$59 million at March 2026 quarter-end. These figures exclude proceeds from the Ewoyaa sale and the initial drawdown of Canada Growth Fund convertible notes, both expected in Q3 2026.

In July 2026, the company reduced the prepayment facility balance by US$9 million, further strengthening its balance sheet. This robust cash position and improved net cash provide substantial financial flexibility to execute the NAL Expansion, advance Moblan, and manage working capital for growing production. The timing of cash inflows from multiple sources enables methodical capital deployment aligned with project milestones without requiring significant additional equity raises. Management will issue fiscal 2027 guidance alongside full-year results expected in late August 2026, offering investors clarity on capital deployment and production outlook.

Operational Momentum and Production Outlook as Expansion Advances

The June 2026 quarter confirmed that Elevra’s operational enhancements at North American Lithium are sustainable and scalable, underpinning confidence in maximizing value from existing production while executing expansion projects. Record monthly production, consistently high mill utilisation and recovery rates, and strong safety performance establish a solid operational foundation. Management highlighted that targeted optimisation, strong crushing plant performance, and processing circuit improvements have driven measurable gains sustained over multiple quarters, indicating structural operational improvements.

Transitioning from legacy pricing contracts to spot-linked pricing mechanisms in upcoming quarters presents upside potential for cash generation if lithium prices remain firm or strengthen. The commencement of NAL Expansion groundbreaking and key equipment orders signal a shift from planning to active execution. Investors should monitor production targets, capital expenditure adherence to the C$366 million budget, staged production milestones, and realized spodumene pricing. Successfully delivering the Updated Scoping Study’s accelerated production growth by two years and generating C$969 million in incremental post-tax NPV will be a critical test of management’s execution and operational discipline.