Lithium Royalty Corp. Reports First Quarter 2025 Results, Highlighting Resilience Amid Downturn in Lithium Pricing Cycle
Lithium Royalty Corp. (TSX: LIRC) (“LRC” or the “Company”) has announced its financial and operational results for the first quarter ended March 31, 2025. Despite facing a challenging market environment marked by a 17% year-over-year decline in spodumene prices, the Company delivered stable royalty revenues, underscoring the strength of its diversified, growth-oriented royalty portfolio.
“LRC’s diversified business model is proving resilient, even amid the current low-price lithium environment,” said Ernie Ortiz, President and CEO of Lithium Royalty Corp “Our royalty interests span a maturing and geographically diverse portfolio of projects, many of which are ramping up or nearing production. These dynamics are positioning the Company to benefit both from an eventual market rebound and robust cash flow generation at today’s prices. Additionally, current market conditions are providing us with improved access to high-quality royalty acquisition opportunities, and we remain actively engaged in evaluating these.”
Financial Overview
For the first quarter of 2025, Lithium Royalty Corp. reported royalty revenue of $0.63 million, essentially flat compared to the same period in 2024. This consistency in revenue was achieved despite the broader lithium price correction. Volumes shipped by LRC’s operating partners increased year-over-year; however, the positive volume impact was offset by lower realized pricing.
Gross profit for the quarter came in at $514,000, representing a modest increase of 5% compared to Q1 2024. General and administrative expenses rose to $1.92 million, a 17% increase year-over-year, primarily driven by continued investment in personnel and deal origination capabilities. LRC posted a net loss of $870,000 for the quarter, an improvement over the $1.05 million loss reported in Q1 2024.
Adjusted EBITDA, which excludes non-recurring items and foreign exchange impacts, stood at negative $1.10 million, compared to negative $662,000 in the prior year. The decline was attributed to higher general administrative costs and increased share-based compensation.
At the end of the quarter, the Company remained in a strong financial position, holding $31.9 million in cash and carrying no debt. This clean balance sheet allows LRC to continue pursuing strategic royalty acquisitions at attractive valuations.
Portfolio Highlights and Project Developments
Lithium Royalty’s portfolio comprises a mix of near-term producers, advanced development assets, and early-stage exploration projects, which collectively provide a steady cadence of upcoming catalysts through the end of the decade. Several notable updates were provided in Q1 2025:
Zijin Mining – Tres Quebradas Project (Argentina)
Zijin reaffirmed that the Tres Quebradas lithium brine project remains on schedule for production commencement in Q3 2025. Phase 1 will deliver an annual output of 20,000 tonnes of lithium carbonate equivalent (LCE), supported by a substantial measured and indicated resource base of 5.4 million tonnes LCE at a concentration of 647 mg/L. Construction on Phase 2, which aims to add 30,000 tpa of LCE capacity, is also progressing. LRC holds a 0.9% gross overriding royalty (GOR) on this asset.
Sigma Lithium – Grota do Cirilo Project (Brazil)
Sigma reported significant progress on its Phase 2 expansion. Earthworks and foundations are now complete, procurement is finalized, and commissioning remains on track for Q4 2025. Sigma targets production of 30,000 tonnes in 2025 and 250,000 tonnes annually starting in 2026, with total 2026 production expected at 520,000 tonnes. LRC benefits from a net smelter return (NSR) royalty of 0.9% on the project.
Delta Lithium – Yinnetharra Project (Australia)
On March 31, Delta Lithium updated its mineral resource estimate. The lithium resource now stands at 16.1Mt indicated at 1.0% Li₂O and 5.8Mt inferred at 0.9% Li₂O. Additionally, a maiden tantalum resource was declared, highlighting 17.5Mt in total resources with grades up to 156ppm Ta₂O₅. LRC holds a 1.0% GOR royalty on the Yinnetharra property, including the Malinda deposit.
Power Metals – Case Lake Project (Canada)
Power Metals achieved a significant milestone in April by producing high-grade cesium concentrate, grading 18.57% Cs₂O through ore-sorting. These results support the economic viability of bulk cesium concentrate production, a key input for Power’s forthcoming PEA due in Q2 2025. Cesium demand continues to grow, particularly in defense, energy, and aerospace sectors. LRC maintains a 2.0% GOR royalty on all minerals extracted from Case Lake.
Green Technology Metals – Root Lake Project (Canada)
The updated preliminary economic assessment (PEA) for Root Lake outlines a standalone operation producing 213,000 tonnes per annum of 5.5% spodumene concentrate. Lithium Royalty Corp. has a 1.0% GOR royalty on Root Lake, and the company plans to advance permitting and pre-feasibility work throughout 2025.
Winsome Resources – Adina Project (Canada)
Winsome continues to advance the Adina project, despite headwinds in the lithium sector. The company is progressing environmental permitting, having submitted its ESIA and launched key trade-off studies. Winsome also extended its option on the Renard plant through August 2025, enabling potential capex savings through existing infrastructure. LRC holds a significant 4.0% GOR royalty on the Adina asset.
Core Lithium – Finniss Project (Australia)
The Finniss project remains under active evaluation, with Core Lithium advancing its restart study. The company is focused on improving recoveries and yields from its DMS plant without adding flotation. The study’s results, expected in Q2 2025, will inform Core’s final investment decision. LRC holds a 2.5% GOR royalty on Finniss.
Sinova Global – Horse Creek Quartz Project (Canada)
Sinova secured interim funding from Vision Blue Resources to complete pre-production activities at Horse Creek. First quartz production is targeted for later in 2025. LRC’s royalty on Horse Creek is tiered: 8.0% on revenues up to US$45 million and 4.0% above that threshold.
Atlas Lithium – Das Neves Project (Brazil)
Atlas announced that its modular DMS lithium processing facility arrived from South Africa in March. Phase 1 of the Das Neves project is designed to produce 150,000 tpa of lithium concentrate. A definitive feasibility study (DFS) is underway and expected mid-2025. LRC holds a 3.0% GOR royalty on Das Neves.
Sayona Mining – Moblan Project (Canada)
Sayona completed over 28,500 meters of new drilling in 2024, with an additional 39,000 meters of assays pending. The campaign aims to expand and upgrade the Moblan resource base. A resource and reserve update is scheduled for August 2025. LRC holds a 2.5% GOR royalty on the Moblan lithium project.
Lithium Market Dynamics and Outlook
In Q1 2025, lithium end-use markets demonstrated positive momentum, particularly in electric vehicles (EVs) and energy storage systems (ESS). EV sales were led by strong performances in Europe and China, the latter posting a 42% y/y increase in NEV (New Energy Vehicle) sales. BYD sold over one million vehicles in the quarter and reaffirmed its goal of 5.5 million unit sales in 2025.
Meanwhile, energy storage demand was buoyed by both long-term structural drivers and short-term catalysts such as tariff uncertainty and supply chain risk mitigation strategies. Despite commodity price weakness, fundamentals in downstream demand remain robust.
Strategic Positioning
Lithium Royalty Corp. remains committed to disciplined growth, maintaining a selective acquisition strategy while reinforcing its diversified and cash-generating royalty portfolio. The Company’s near-term production catalysts, healthy cash reserves, and absence of debt collectively position LRC to navigate market volatility and capture value throughout the lithium cycle.
As new projects ramp up and existing ones expand, LRC is well-positioned to benefit from volume-driven growth even in a subdued pricing environment. Its long-term thesis on the energy transition remains intact, with lithium poised to remain a critical enabler of electrification and decarbonization efforts globally.
