Lithium Royalty Corp. (LRC) has reported an 81% increase in Lithium Carbonate Equivalent Tonnes (LCEts) for the year 2024, marking its first full calendar year as a publicly traded entity.
The company’s annual revenue for 2024 amounted to $3.0 million, corresponding to 233 LCEts, reflecting substantial year-on-year growth. This upsurge is primarily attributed to volume expansion across LRC’s diversified royalty portfolio.
A key development within LRC’s portfolio is the Mariana Project, operated by Ganfeng Lithium, which commenced operations on 12 February 2025. The project’s inauguration is anticipated to significantly enhance revenue streams in 2025, adding another producing asset to the company’s portfolio.
Looking ahead, LRC projects further revenue growth in 2025 and 2026, driven by the initiation of new assets and the Phase II expansion of Sigma Lithium’s operations, expected in the second half of 2025.
In a strategic move to strengthen its financial position, LRC is set to finalise a partial sale of its royalty interest in the Tres Quebradas Project to Triple Flag during the first quarter of 2025. This transaction is projected to generate C$40 million, replenishing LRC’s balance sheet amid the current cyclical downturn in lithium markets.
For the fourth quarter of 2024, LRC reported 61 LCEts or 787 Spodumene Concentrate Equivalent Tonnes (SCEts), reflecting a sharp increase from 19 LCEts (247 SCEts) in the previous quarter, and 37 LCEts (451 SCEts) in Q4 2023.
Despite a 39% decline in royalty revenue for the three months ending 31 December 2024, amounting to $0.6 million, the full-year revenue stood at $3.0 million, a 45% decrease from 2023. This reduction was primarily due to lower realised prices, with spodumene prices declining by 76% year-on-year, according to Benchmark Minerals.
Lithium Royalty Corp. CEO Ernie Ortiz stated that the company’s revenue performance outpaced lithium pricing indices for both the fourth quarter and the entire year of 2024. He attributed this resilience to the company’s diversified portfolio of royalties and the expansion of Sigma Lithium, one of the world’s lowest-cost lithium producers, which substantially increased production volumes in 2024.
The 81% growth in LCEts year-on-year highlights the advantages of LRC’s diversified royalty model, following an impressive 242% increase in 2023. This marks another consecutive year of growth despite challenging market conditions.
LRC’s strategic investments and expanding portfolio position it favourably to capitalise on the increasing demand for lithium, a critical component in the global transition towards renewable energy and electric mobility.
