Elevra Lithium (SYA) H2 2024 earnings summary

Executive summary

• North American Lithium (NAL) achieved near steady-state production within 17 months, producing 155,822 dmt concentrate in FY24, with record monthly and daily outputs and first full-year revenue of $201M.

• Significant leadership changes included Lucas Dow as MD/CEO and Dougal Elder as CFO, with new Audit and Risk and Nomination and Remuneration Committees formed.

• Major capital projects at NAL, such as the Crushed Ore Dome and Tailings Storage Facility, improved mill utilisation and reliability.

• Extensive exploration at NAL, Moblan (Québec), and Tabba Tabba (Western Australia) led to substantial resource upgrades and new mineralised zones.

• Shipped 157,937 dmt of spodumene concentrate to customers in the USA and China.

Financial highlights

• FY24 revenue reached $201M, with a consolidated underlying EBITDA loss of $54M, including a $23M loss at NAL, driven by lower lithium prices and ramp-up costs.

• Group loss after income tax totaled $119M, impacted by $65M in non-cash extraordinary items and depreciation/amortisation.

• Cash balance at 30 June 2024 was $91M, down from $211M the previous year, with no debt.

• Operating cash outflow was $65M, while investing cash outflow was $114M, mainly for NAL ramp-up and exploration.

• Capital and exploration investment totaled $128M, with $102M for NAL optimisation and $26M for exploration.

Outlook and guidance

• FY25 spodumene concentrate production guidance: 190,000–210,000 dmt; sales: 200,000–230,000 dmt.

• Unit operating costs expected at A$1,150–A$1,300/dmt, reflecting steady-state production at NAL.

• Capital expenditure guidance of ~A$20M and exploration expenditure of ~A$30M, focused on Quebec projects and mainly funded by Flow Through Shares.

• Two-thirds of FY25 concentrate sales to be sold to Piedmont Lithium under offtake agreement.

• Focus on operational improvements, cost reduction, and further resource expansion in Québec and Western Australia.