Elevra Lithium Ltd (ASX: ELV) shares are slipping on Friday after the lithium producer released an early look at its June quarter.
At the time of writing, the Elevra Lithium share price is down 4.54% to $8.62. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% to 8,809 points.
Despite today's decline, Elevra shares remain up around 7% in 2026 and have climbed roughly 220% since this time last year.
The latest numbers included another strong quarter at the mine, although the lower price received for its lithium appears to be weighing on the stock.
Here's what the company reported.
Images source: Getty Images
Production finishes the year strongly
According to the release, Elevra produced approximately 54,479 dry metric tonnes (dmt) of spodumene concentrate during the June quarter.
Production rose 15% from the March quarter and marked the second-highest quarterly result achieved at North American Lithium.
The operation delivered a particularly strong May, producing approximately 22,202 tonnes. Elevra described this as a monthly production record.
Full-year production reached approximately 197,968 tonnes, giving the company a stronger finish to FY26.
Management put the improvement down to continued work on plant optimisation, ore feed consistency, and recoveries. The company also pointed to throughput and operating efficiency gains across the quarter.
However, sales didn't keep pace with production.
Sales came in at around 33,977 tonnes, which the company linked to customer delivery schedules.
As a result, Elevra finished June with a provisional inventory of around 40,863 tonnes.
Pricing takes the shine off production gains
The price Elevra received for its lithium was less than impressive.
The company reported provisional average realised pricing of approximately US$919 per tonne, sold free on board.
Management said June shipments were priced under contracts linked to average market prices between October 2025 and March 2026.
Lithium prices were lower through much of that period, which left Elevra receiving less than the current spot market.
The June quarter sales were also made under the company's largest legacy contract, which uses the same delayed pricing structure.
Currently, the spot price for lithium is sitting at 158,500 CNY, down 3.35% for the day.
Can Elevra shares recover?
I think Elevra shares can recover from here.
Production is improving, and the pricing lag should start to ease as more sales move onto newer contracts.
The next step is to turn that higher output into better sales and cash flow, particularly after inventory increased during the quarter.
The full quarterly report later this month should show whether higher production is starting to improve the rest of the business.
