Sayona Mining Q2 Earnings Call Highlights

Elevra Lithium used its December 2025 quarterly update call to outline a first full quarter following the completion of the Sayona-Piedmont merger, highlighting record revenue and positive operating cash flow at its North American Lithium (NAL) operation, while also flagging operational headwinds that prompted the company to revise its FY26 guidance.

Record revenue and cash flow at NAL, despite recovery headwinds

Managing Director and CEO Lucas Dow said the December quarter delivered “record revenue and positive operating cash flow” at NAL, even as the operation faced lower processing recoveries tied to the specific mining areas accessed during the period. The company reported two lost time injuries, but described the quarter as NAL’s second-best safety performance since restarting operations in 2023, including two separate stretches of more than 40 days without a recordable injury.

Mining activity remained in Phase 3, with mined volume up 15% quarter-over-quarter to nearly 390,000 wet metric tons. Mill utilization improved to 89%, and throughput reached record levels despite a planned shutdown for a rod mill reline. However, lower recoveries resulted in a decline in spodumene concentrate production to 44,154 dry metric tons, down 15% from the prior quarter.

Dow attributed the recovery challenges to a combination of factors: mining progressed into areas adjacent to historical underground workings that reduced in-pit ore availability, the mined areas carried lower lithium grade, and they also contained higher iron content than typical for the deposit. Elevra emphasized that the iron content experienced in the quarter was “well above the life-of-mine average” and “not representative” of the broader ore body.

Lower grades and higher iron content drove weaker recoveries

During the quarter, mill feed was supplemented with lower-grade stockpiled ore, and the average feed grade fell to 0.98% versus 1.14% in the September quarter. The company said the lower feed grade, combined with higher iron content, negatively impacted lithium recovery and concentrate output. Specifically, higher iron required more use and intensity in wet high-intensity magnetic separators (WHIMS), which reduced lithium recovery.

In response, Dow said the company is taking “definitive actions” including additional drilling to improve grade control, alongside changes to stockpiling and feed blending strategies. On the call, he said Elevra expects to work through the more challenging area over the next couple of quarters and reiterated that the conditions are not indicative of long-term performance at NAL.

In Q&A, Dow said head grade for the ensuing quarter is expected to be around 1.03%, with iron content also expected to reduce as mining progresses. He described the December quarter as likely “the most challenging quarter behind us,” while noting the operation still faces “some work” over the next few quarters.

Sales volumes and pricing lifted quarterly results

Despite lower production, NAL sold 66,016 dry metric tons during the quarter across two shipments, compared with 25,975 tons sold in the September quarter. Dow said the increase in sales volume aligned with a strategy to defer sales into the December quarter to capture improved pricing. The company ended the quarter with 30,000 tons of finished product in inventory.

Average realized pricing rose 27% to $998 per ton on an FOB basis, driving record quarterly revenue of $66 million. Dow said spodumene pricing increased throughout the quarter amid tightening supply and continued demand growth from electric vehicles and stationary storage. Unit operating costs decreased 1% quarter-over-quarter to $812 per ton sold, which, combined with stronger pricing, resulted in $12 million of operating profit from NAL and $13 million in operating cash flow.

In a later response, CFO Christian Cortes said Elevra’s corporate costs are around $7 million per quarter and that, at current pricing and with cost guidance, the company expects to be profitable at a group level, not only at NAL.

Growth projects: NAL expansion, Moblan, Ewoyaa, and Carolina Lithium

Dow said Elevra continues to prioritize optimizing production at NAL while advancing its growth portfolio. Following an NAL expansion scoping study released in mid-September 2025, the company continued permitting, environmental, and technical work. Elevra also announced an “accelerated path” to increasing annual concentrate production through a staged expansion approach intended to bring incremental production online more quickly than a whole-of-project expansion. The company said it plans to provide an updated scoping study in the coming months and expects to move directly to detailed engineering rather than a conventional definitive feasibility study (DFS), citing the project’s brownfield nature and better-known risks.

At Moblan, baseline environmental fieldwork progressed, and additional environmental studies were nearing completion. Dow said the critical focus at Moblan is permitting rather than a DFS, though the company plans to update the DFS and is revising its approach. He indicated timing could be toward the back end of calendar year 2026 or early calendar year 2027.

At Ewoyaa, Elevra said the mining lease was submitted for review and ratification by the Ghanaian government after consultation and amendments to fiscal terms, including variable royalties linked to spodumene pricing. The company noted progress remains subject to ratification, market conditions, and financing.

At Carolina Lithium, Elevra reported securing general stormwater permits for both the mine and conversion plant and continued engagement with regulators and community stakeholders. Dow also said he met with U.S. government representatives, including the Department of Energy, Department of War, and the National Security Council, and that the company remains engaged with the government regarding Carolina. He described Carolina as “one of only two hard rock spodumene deposits in the U.S.” and said its proximity to being fully permitted makes it attractive.

Balance sheet and revised FY26 guidance

Elevra ended December with $81.3 million in cash, down from $97.9 million in September. Dow attributed the decline primarily to $14 million of non-recurring merger transaction costs, $7 million in planned capital expenditures, and corporate operating and working capital outflows. He said the company will provide information on cost synergies from the Sayona-Piedmont merger with half-year interim results in February.

Dow said the company remains well-capitalized with no secured debt and retains flexibility to invest in operations and advance near-term growth objectives.

However, after reviewing first-half performance and current mining conditions, Elevra revised its short-term FY26 guidance to a more conservative outlook, reflecting expectations for lower feed grades and higher iron content reducing recoveries in the near term. The updated guidance includes:

• Spodumene concentrate production: 180,000–190,000 tons (previously 195,000–210,000)
• Spodumene concentrate sales: 170,000–190,000 tons (previously 195,000–210,000)
• Unit operating costs (per ton sold): $860–$880 per dry metric ton (previously $765–$830)
• Capital expenditure: unchanged at $26 million

The company said the revised production and sales outlook implies volumes in the second half of FY26 comparable to the first half. Dow also stated that the second half guidance contemplates producing concentrate at a grade of 5%, noting the trade-off between recovery and grade.

In Q&A, management reiterated that the recovery decline is “transitional and not structural,” and said it expects recoveries to normalize when ore grades and iron content return closer to life-of-mine averages. Dow also said the company would like concentrate grades to return to around 5.2% to 5.25% during FY27, “if not earlier,” while acknowledging the remainder of FY26 guidance reflects a conservative approach.

During the call, Elevra also addressed a question on Moblan ownership, saying it would like to hold a larger stake but has not opened discussions with Investissement Québec and would not pursue additional ownership “at any cost.”

The update marked the first full-quarter snapshot of performance after the merger and underscored the company’s focus on navigating near-term operational variability at NAL while continuing to advance a broader portfolio of lithium development projects.

Note: The transcript referenced the Sayona-Piedmont merger and related synergy disclosure timing. Sayona Mining (ASX:SYA) was mentioned in the context of that merger.

About Sayona Mining (ASX:SYA)

Sayona Mining Limited, together with its subsidiaries, engages in mineral identification, acquisition, exploration, and development in Australia and Canada. It explores for lithium, graphite, and gold deposits. Its flagship property the North American Lithium project comprises 19 contiguous claims covering an area of 582.31 and one mining lease covering approximately an area of 700 hectares located in Quebec, Canada. The company was formerly known as DiamonEx Limited and changed its name to Sayona Mining Limited in May 2013.