Key Highlights

• According to the quarterly report, NAL mined 466,499 wet tonnes of ore, up 25% on the June quarter and 38% on a year earlier, a record.

• The company also holds a 49% interest in the Morella Lithium joint venture in Western Australia and owns development Assets including the Moblan project in Québec and the Carolina Lithium project in the United States.

• Cash at 30 September 2026 was US$319 million, up about US$63 million on June 2026.

• It indicates annual production rising from about 199,000 tonnes to 373,000 tonnes, with life-of-mine C1 costs of US$630 per tonne.

What did Elevra Lithium Limited (ASX:ELV) tell investors in its September 2026 quarterly report, and why does it matter? The short answer is that the North American Lithium (NAL) operation in Québec delivered record Mining and processing volumes, sales rose sharply on shipment timing and a better realised price, unit costs fell, and the company moved its expansion into execution. The report is dated 27 October 2026 and covers the quarter ended 30 September 2026, the first quarter of the company's FY27.

The central development: a more encouraging quarter at NAL

According to the quarterly report, NAL mined 466,499 wet tonnes of ore, up 25% on the June quarter and 38% on a year earlier, a record. Ore processed was 364,987 dry tonnes, also a quarterly record. Spodumene concentrate production was 54,907 dry tonnes at a 5.1% grade, described as the second-best quarter on record. Recovery was 70%, in line with the prior quarter, and mill utilisation was 91% despite a major planned shutdown.

Sales were 58,134 dry tonnes across two cargoes, up 71% on the previous quarter. The company reported an average realised price of US$1,276 per dry tonne on a free-on-board basis, equivalent to US$1,524 per tonne on a 6% basis. Importantly, it describes this as an estimate based on spot indices at 30 September 2026, with final pricing settling in the December quarter and potentially moving higher or lower. Revenue was US$74 million, up 137% on the June quarter.

Unit operating cost was US$780 per dry tonne sold, down 14% from US$907 in the prior quarter.

Business model and revenue drivers

Elevra sells lithium concentrate, so revenue is driven by three things: tonnes shipped, the lithium price that sets the realised price, and the cost of production. Because concentrate is sold in discrete cargoes, quarterly sales can swing with shipment timing, as this quarter's jump from the previous period shows. The provisional pricing mechanism adds another layer of uncertainty, because the December quarter will settle the final price on cargoes shipped in September.

The company also holds a 49% interest in the Morella Lithium joint venture in Western Australia and owns development assets including the Moblan project in Québec and the Carolina Lithium project in the United States.

Cash, Balance Sheet and recent transactions

Cash at 30 September 2026 was US$319 million, up about US$63 million on June 2026. Net cash was US$240 million, compared with US$200 million at June, after a convertible note balance of US$46 million and a prepayment Facility balance of US$33 million. NAL operating cash inflow was US$34 million and Capital Expenditure was US$9 million.

After the quarter end, the sale of the Ewoyaa project to Huayou completed on 26 October 2026 for about US$71 million in cash before fees and taxes, which is not included in the quarter-end figures. The sale of the Tabba Tabba tenement in Western Australia to Wildcat was also completed, for A$16 million in total.

The expansion and offtake agreements

In September 2026 Elevra published a pre-feasibility study for the NAL expansion. It indicates annual production rising from about 199,000 tonnes to 373,000 tonnes, with life-of-mine C1 costs of US$630 per tonne. Ore Reserves are 47.2 million tonnes at 1.12% lithium oxide, supporting a 20-year mine life. The company states the project has moved into execution and is on schedule, on budget and fully funded, and the legacy carbonate plant is being demolished. A pre-feasibility study is an early-stage estimate; costs, schedules and production can change as engineering progresses.

On the commercial side, the report notes an offtake with Mangrove Lithium for up to 144,000 tonnes per annum on a take-or-pay basis for seven years, with a US$1,000 per tonne floor, although it depends on Mangrove's financing and a final Investment decision by 31 December 2028. A separate offtake with LG Energy Solution, signed in October 2026, covers 240,000 dry tonnes over three years. Canada Growth Fund convertible notes of US$46 million have been issued, with a further US$56 million conditional tranche.

Sector and competitive position

Elevra is a hard-rock lithium producer selling into a market where prices have been volatile, and where Supply decisions by large Australian and Chinese producers influence the whole sector. Its competitive position rests on being a North American source of concentrate, close to growing battery supply chains in the region, and on its cost trajectory. The company's reported unit cost of US$780 per tonne compares with a realised price of US$1,276 per tonne for the quarter, which shows the Margin cushion available at current prices, but a weaker price would narrow it quickly.

Risks and developments to monitor

Key risks include lithium price movements and the final pricing true-up in the December quarter, operating performance at NAL including recovery, which sat at 70%, and the safety record. The report notes six recordable injuries in the quarter, mainly musculoskeletal, and says the company is strengthening coaching and critical risk controls. The Carolina Lithium project faces permitting steps; a draft air permit was issued for public comment and a public hearing was held in October 2026.

Upcoming items include the Annual General Meeting on 19 November 2026, after which the board is due to shrink from eight to six directors, the Moblan scoping study expected to finish in the second quarter of FY27, the permitting outcome for Carolina Lithium, and the December quarter report, which will show the final settlement of September cargo pricing.