Elevra Lithium Limited

For the March 2025 quarter, Sayona reported ore mined of approximately 322,000 tons, down 13% quarter on quarter; mill throughput of 287,782 tons at an average feed grade of 1.13%; lithium recovery of 69%, up 1 percentage point; and concentrate production of 43,261 tons. Concentrate sales were 27,030 dry metric tons, and revenue was $31 million, reflecting lower volumes but an 8% increase in average realized selling price to $1,142 per ton FOB. Unit operating cost per ton sold rose 7% quarter on quarter to $1,374 per ton, while cash cost fell 1% to US$830 per ton due to currency movement. Sayona ended the quarter with cash and cash equivalents of $88.9 million, down from $110.4 million in December 2024, and recorded a relatively modest $6 million operating cash outflow. Management reaffirmed FY25 production guidance of 190,000-210,000 tons and said unit cost guidance remains unchanged. Forward, the company expects shareholder votes on the Piedmont merger in the coming months, expects the transaction to complete mid-calendar 2025, and said the conditional $69 million Resource Capital Fund VIII placement at 3.2 cents per share will strengthen the post-merger balance sheet.

Lucas Dow emphasized that the quarter was operationally resilient despite challenging conditions, and he framed the weather disruption as temporary rather than structural. He highlighted mitigation actions at NAL, including a mobile crusher and scalper setup, and said the company has started the final quarter strongly. Strategically, he focused on the merger with Piedmont, calling it transformational and saying it should create the largest hard rock lithium producer in North America with improved market access and synergies.

Dougal Elder’s financial commentary centered on the quarter’s lower sales volume, margin pressure, and cash movement. The company had $88.9 million of cash at quarter-end versus $110.4 million in December 2024, with the decline attributed to lower planned sales volumes, a $7 million operating loss from NAL, $3 million of sustaining capex, $7 million in flow-through related payments, and $4 million of merger transaction costs. Management said Sayona is approaching cash break-even, noting a $6 million operating cash outflow for the quarter, and said FY26 will include a larger tailings dam raise but exploration spend is not expected to be materially above FY25 because work is shifting toward MRE updates and feasibility studies.

Analysts focused on whether the weather-driven utilization weakness has already improved and whether capital spending will rise next year; management said the worst weather is behind them and that the company has already started the current quarter strongly, while FY26 capex will mainly reflect a required tailings dam raise. Questions also centered on merger economics and the post-merger cost structure, with management saying the Piedmont off-take freight benefit will fall away but combined synergies should offset that, and that the goal is to get NAL to cash break-even or better. On valuation and project timing, management said updated MREs in the second half of 2025 and ongoing investor marketing are intended to improve recognition of NAL and Moblan’s value.