Lithium Royalty (LIRC) Q1 2025 earnings summary

Executive summary

• Q1 2025 royalty revenue remained flat year-over-year at $629,000 despite a 17% drop in spodumene prices, demonstrating resilience against lithium price volatility.

• Revenue continues to outperform the broader lithium price index, supported by a diversified portfolio of 35 royalties.

• Key assets advancing include Sigma Lithium (phase two), Ganfeng's Mariana project, and Atlas Lithium's DMS plant, with multiple portfolio catalysts expected in 2025.

• Strong balance sheet with $32 million in cash and no debt, positioning the company to pursue new royalty opportunities.

• Portfolio maturity and low cost base position the company well for various market environments.

Financial highlights

• Royalty revenue was $629,000, nearly unchanged from $631,000 in Q1 2024.

• Adjusted EBITDA loss of $1.1 million, compared to a $662,000 loss in Q1 2024, with EBITDA improving to a loss of $1.01 million from $1.13 million year-over-year.

• G&A expenses were $2 million, up from $1.7 million, with $158,000 in non-recurring SIB-related costs.

• Gross profit increased 5% year-over-year to $514,000.

• Cash at quarter-end was $32 million, with no debt.

Outlook and guidance

• Expecting revenue from Ganfeng's Mariana project in H2 2025 and from Sigma's phase two expansion.

• Additional catalysts include Atlas Lithium's Das Neves development, Core Lithium Finniss restart study in Q2 2025, and Power Metals Case Lake PEA in 2Q25.

• Atlas Lithium Das Neves DFS anticipated mid-2025; Sayona Moblan resource update expected by August 2025.

• Anticipates continued strong demand for lithium, with EV and energy storage growth projected at 25%-30% per year.

• Tres Quebradas project on track for production in 3Q25.