This article first appeared on GuruFocus .
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Revenue:$202 million, a 39% increase compared to FY25.
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Underlying EBITDA (Group):$14 million profit, compared to a prior period loss of $43 million.
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Underlying EBITDA (NAL):$46 million profit, compared to a $29 million loss in the prior year.
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Net Profit After Tax:$44 million, an improvement of $292 million compared to FY25.
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Cash Balance:$255 million at the end of June, up from $47 million at June 30, 2025.
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Spodumene Concentrate Production:Approximately 198,000 dry metric tons, a 3% decrease compared to the prior year.
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Spodumene Concentrate Sales:Approximately 181,000 dry metric tons, a 13% decrease compared to FY25.
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Average Realized Price:$1,092 per tonne FOB, a 57% increase from $690 per tonne in FY25.
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Unit Operating Cost:$853 per tonne sold FOB, a modest 2% increase.
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Capital Expenditure:$24 million during FY26.
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FY27 Production Guidance:198,000 to 210,000 tonnes of spodumene concentrate.
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FY27 Sales Guidance:200,000 to 230,000 tonnes.
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FY27 Unit Operating Cost Guidance:$880 to $950 per tonne sold.
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FY27 Capital Expenditure Guidance:$120 million to $140 million.
Release Date: August 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue increased 39% to $202 million, driven by a 57% rise in average realized prices to $1,092 per tonne.
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Group underlying EBITDA turned positive at $14 million, a significant improvement from a $43 million loss in the prior year.
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Cash balance strengthened to $255 million, with an additional $65 million received post-period from convertible bonds, fully funding the NAL expansion.
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Safety performance improved dramatically, with total recordable injury frequency rate down 67%.
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NAL brownfield expansion is fully funded and underway, expected to increase production capacity to 338,000 tonnes and reduce unit costs to $628 per tonne.
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Strategic portfolio optimization included divesting non-core assets and securing a new offtake agreement with Mangrove Lithium, featuring a $1,000 floor price and no ceiling.
Negative Points
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Production declined 3% to 198,000 tonnes, with sales down 13% due to shipment timing and port transition.
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Unit operating costs increased 2% to $853 per tonne, with FY27 guidance higher at $880-$950 due to elevated stripping activity.
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Cash flow from operations was weak, with only $3 million generated at NAL, impacted by outstanding receivables and inventory buildup.
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Corporate costs rose significantly to $30 million, including a $7 million loss on hedge settlements.
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Potential US tariffs on Canadian goods could impact sourcing for the expansion, though alternate solutions are being evaluated.
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The Mobilan project remains in study phase, with an updated scoping study not expected until December 2026, delaying potential growth.
Q & A Highlights
Q: What guidance can you provide on FY27 realized prices, and can you confirm the floor price in the Mangrove offtake agreement? A: Lucas Dow (CEO) confirmed the Mangrove definitive agreement includes a floor price of $1,000 per tonne with no ceiling. Regarding FY27 pricing, with legacy agreements now completed, the company is effectively exposed to the spot market, and realized pricing should align more closely with reported market prices.
Q: Can you explain the increase in FY27 unit operating cost guidance and the impact of US tariffs on the NAL expansion? A: Lucas Dow (CEO) attributed the cost increase primarily to higher mining activity, with the strip ratio rising to ~10% in FY27 from 9.1% in FY26, which will normalize as mining moves through the phase. Christian Cortes (CFO) noted minimal operational exposure to tariffs, with the bulk of technology and processes available worldwide, and the project remains on track at the USD270 million total capital estimate.
Q: What are the next steps for the Mobilan project, and when can we expect the updated scoping study? A: Lucas Dow (CEO) stated the updated scoping study will determine the optimal production capacity, potentially higher than the previous DFS level of 300,000 tonnes per year, and refresh capital estimates. The study is expected to be released in the December quarter of this calendar year, with permitting activities progressing in parallel.
Q: How should we think about realized pricing going forwardwill it be linked to lithium carbonate or spodumene prices, and is there a lag? A: Christian Cortes (CFO) clarified that all current and future shipments will be linked to spodumene concentrate indexes reported by credible price reporting agencies, with no chemical pricing references. The pricing is settled as product is delivered, and the company is moving away from lag pricing mechanisms.
Q: Can you provide more detail on the strip ratio profile beyond FY27 and how quickly it will revert to the life-of-mine average? A: Lucas Dow (CEO) indicated that FY27 represents the peak strip ratio, and it will decline rapidly thereafter as the company completes mining through the underground stopes and picks up additional ore from the Marvelous dike.
Q: Is the Carolina project being pushed out further given the recent agreements and study pipeline? A: Lucas Dow (CEO) clarified that Carolina is progressing, with the air permit expected within this quarter or early next quarter, which would fully permit the project. The key enabler remains finding a downstream partner to build and operate the co-located chemical facility, as Elevra's expertise is in mining.
Q: What does the capital expenditure profile for the NAL expansion look like over FY28 and FY29? A: Lucas Dow (CEO) outlined the total capital of USD270 million for all three stages: Stage 1 at ~$70 million, Stage 2 at ~$60 million, and Stage 3 at ~$140 million. FY27 includes spending on Stage 1 and advancing Stage 2 work, plus ~USD10 million for Mobilan and growth initiatives.
Q: What volume of production do you want under long-term offtake contracts, and what is the benefit if pricing is linked to spodumene indexes? A: Christian Cortes (CFO) stated the target is approximately three core customers covering around three-quarters of production, with flexibility to allocate the remainder to spot sales. The key benefit is counterparty reliability and confidence in offtakers' growth plans, which provides price protection and stability during market downturns.
Q: How much of the material will remain in North America? A: Christian Cortes (CFO) noted that currently nothing is shipped to North America due to limited conversion capacity. However, discussions are ongoing with a party with a facility in North America, and if supply commences, it could represent around 25% of volumes.
Q: Will there be incremental production as each stage of the NAL expansion is completed? A: Lucas Dow (CEO) explained that Stage 1 will deliver a 15% to 20% production uplift, expected to be complete by mid-calendar year 2027, with volume increases flowing through in FY28. Production increases will occur at the completion of each stage rather than incrementally, as equipment cutovers align with planned shutdown periods.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
