Key Highlights

• Ore mined reached a record 466,499 wet metric tonnes, up 25% on the previous quarter.

• Ore milled was 364,987 dmt, the first quarter in NAL's history above 360,000 dmt, and plant utilisation was 91% despite a major planned shutdown.

• Spodumene concentrate production was 54,907 dmt at 5.1% grade, up 1% on the June quarter and described as the second-best quarter on record.

• Lithium recovery averaged 70%, in line with the prior quarter.

How did Elevra Lithium (ASX:ELV) lift Revenue and cut unit costs in the September 2026 quarter while a major planned shutdown was under way? According to the company's quarterly activities report, its North American Lithium (NAL) operation in Quebec set Mining and milling records, sold 58,134 dry metric tonnes (dmt) of spodumene concentrate and reported revenue of US$74 million, up 137% on the June quarter. Unit operating costs fell 14% to US$780 per dmt sold, which widened the Margin on each tonne.

What Elevra does

Elevra Lithium is an ASX- and Nasdaq-listed company that produces spodumene concentrate, a lithium raw material, at NAL. It was formed through the combination of Sayona Mining and Piedmont Lithium, and its portfolio now spans producing, development and exploration Assets in Canada, the United States and Western Australia.

Revenue is driven mainly by two variables: the Volume of concentrate produced and sold, and the lithium price that determines what customers pay. Because pricing is linked to spodumene indices, Earnings can swing sharply when the market moves.

Operating performance at NAL

The operating numbers were encouraging. Ore mined reached a record 466,499 wet metric tonnes, up 25% on the previous quarter. Ore milled was 364,987 dmt, the first quarter in NAL's history above 360,000 dmt, and plant utilisation was 91% despite a major planned shutdown.

Spodumene concentrate production was 54,907 dmt at 5.1% grade, up 1% on the June quarter and described as the second-best quarter on record. Lithium recovery averaged 70%, in line with the prior quarter.

Concentrate sold exceeded production by around 3,200 dmt, so sales volumes were helped by timing, and that gap may not recur every quarter. Investors should therefore treat the quarter's revenue as a mix of production and inventory movements.

Pricing, margins and the cash position

The realised price was US$1,276 per dmt FOB, equivalent to US$1,524 per dmt on a 6% lithia (SC6) basis. The company says this is estimated from spot indices at 30 September 2026, with final pricing to settle in the December quarter. That provisional element is worth remembering when comparing revenue across periods.

Elevra reported an operating cash margin of US$476 per dmt sold. Capital Expenditure for the quarter was US$9 million, covering NAL sustaining projects and the NAL expansion.

Cash at 30 September 2026 was US$319 million, up US$63 million from June. Net cash was US$240 million, compared with US$200 million three months earlier. That figure is after a US$46 million convertible note balance, issued to Canada Growth Fund following Shareholder approval on 16 July 2026, and a US$33 million prepayment Facility balance, down from US$55 million.

After the quarter end, Elevra sold its interest in the Ewoyaa project to Huayou for about US$71 million in cash on 26 October 2026. The company excluded that amount from the net cash figure.

Growth projects and customer agreements

The NAL expansion has moved into execution. The company reports that detailed engineering and long-lead procurement are under way, along with demolition of the legacy carbonate plant, and says the project is fully funded.

Beyond NAL, the pipeline is earlier stage:

• Moblan, in which Elevra holds 60%, has environmental baseline fieldwork continuing and a scoping study on plant size and staging under way, building on a 2024 definitive feasibility study.

• Carolina Lithium, wholly owned, received a draft air permit that has been issued for public comment by the North Carolina Division of Air Quality.

• In Western Australia, the sale of the Tabba Tabba tenement was completed and a proposal to expand the Morella Lithium joint venture was announced.

On contracts, Elevra signed a binding Supply agreement with LG Energy Solution for 240,000 dmt on 8 October 2026. It also has a binding agreement with Mangrove Lithium at market-based pricing with a US$1,000 per tonne SC6 floor, but that depends on Mangrove's financing and a final Investment decision on an Eastern Canada conversion facility.

Sector conditions and competitive position

The lithium market has been volatile, and management attributes price swings to a developing market.

Elevra competes with hard-rock spodumene producers, principally in Australia, and with brine and clay producers elsewhere. Its distinguishing features are a North American location, which may appeal to customers seeking supply closer to battery and vehicle Manufacturing in the region, and a relatively low-cost position at NAL as reported this quarter.

Elevra is also a constituent of the S&P/ASX 200, having been added in the June 2026 quarterly rebalance announced by the index provider.

Risks and what to watch

Several uncertainties matter for the outlook:

• Lithium prices. Realised pricing for the September quarter is provisional until the December quarter, and further price falls would compress margins.

• Safety. It is adding coaching, field Leadership and critical risk controls.

• Contract conditions. The Mangrove agreement is not firm until financing and an investment decision are in place.

• Permitting and stage of development. Carolina Lithium's air permit is still in draft, and Moblan is at scoping stage.

• Governance. The board is due to reduce from eight to six directors after the 2026 AGM, when Allan Buckler and Jorge Beristain will resign.

Upcoming developments include price settlement for the September-quarter shipments, progress on NAL expansion engineering, the outcome of the North Carolina permit consultation and the AGM.

The takeaway

Elevra's quarter showed a producer improving output and unit costs while holding a net cash position, supported by a new customer agreement and an asset sale after quarter end. The investment debate centres on how durable lithium prices prove to be, whether NAL's performance is sustained and how the longer-dated projects are funded and permitted.