Lithium Americas (Argentina) Corp. (NYSE:LAAC – Get Free Report) shares were down 4.2% during mid-day trading on Friday . The company traded as low as $5.11 and last traded at $5.20. Approximately 5,469,508 shares traded hands during trading, an increase of 282% from the average daily volume of 1,432,022 shares. The stock had previously closed at $5.43.Lithium Americas (Argentina) Stock PerformanceThe company has a market capitalization of $842.05 million, a PE ratio of 0.67 and a beta of 1.35. The company’ ...

Cauchari-Olaroz Operations - Cauchari-Olaroz's Q3 2025 production volume reached approximately 8,300 tonnes, operating at over 80% capacity[30] - The company maintains its 2025 production guidance of 30,000-35,000 tonnes of LCE[30] - Stage 1 capital costs for Cauchari-Olaroz were $979 million[59] PPG Scoping Study Results - The scoping study indicates a resource of 151 million tonnes of LCE (Measured & Indicated) and 67 million tonnes of LCE (Inferred)[48] - The project's after-tax NPV, using an 8% discount rate, is $81 billion, with an IRR of 327% at a price of $18,000 per tonne[48] - Stage 1 of PPG is projected to have a capacity of 50,000 tonnes per annum (tpa) of LCE, with the full project targeting 150,000 tpa[48] - Stage 1 capital expenditure (CAPEX) is estimated at $11 billion, while the total CAPEX for the full project is $33 billion[48] - The operating expenditure (OPEX) for Stage 1 is projected at $5,344 per tonne, decreasing to $5,027 per tonne for the full project[48] Strategic Initiatives - The company plans to submit RIGI applications in H1 2026[85] - A new joint venture with Ganfeng will consolidate the Pastos Grandes Project, Sal de la Puna Project, and Pozuelos-Pastos Grandes Project[6]

Financial Data and Key Metrics Changes - The third quarter of 2025 saw production rates sustained at 90% capacity, with a new record monthly production volume achieved in October [5][6] - The company announced a new $130 million six-year debt facility from Ganfeng, enhancing its debt profile while preserving shareholder value [5][6] - Cash costs increased by approximately 3% to $6,300 per ton due to a slight decrease in production [66][67] Business Line Data and Key Metrics Changes - The PPG project is expected to have a Stage one LCE capacity of 50,000 tons per year, expanding to 150,000 tons per year in three phases, with an initial capital investment estimated at $1.1 billion [12][13] - The total life of mine capital for the PPG project is estimated at $3.3 billion, with a strong after-tax NPV of $8.2 billion at an 8% discount rate [13][12] Market Data and Key Metrics Changes - The lithium market is projected to require approximately 1 million tons of new LCE capacity over the next decade to meet global demand, supporting long-term pricing levels [13][14] - The long-term price of lithium carbonate is projected at $18,000 per ton, with an IRR of over 20% even at a conservative price estimate of $12,000 per ton [13][74] Company Strategy and Development Direction - The company aims to sustain higher production levels while positioning itself for long-term growth, focusing on the PPG project as a key growth driver [5][34] - The partnership with Ganfeng is highlighted as a significant factor in achieving low-cost growth and technological innovation in Argentina [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting production targets for 2025 and emphasized the importance of the collaborative partnership with Ganfeng [4][6] - The company is optimistic about the lithium market's evolution, particularly the demand for energy storage systems (ESS), which may surpass the electric vehicle (EV) market [15][92] Other Important Information - The Argentine government’s RIGI program is expected to provide competitive incentives and clarity on foreign exchange regulations, enhancing the project's value [17][18] - The PPG project has received environmental permits, allowing for the submission of the RIGI application in 2026 [18][34] Q&A Session Summary Question: What is the reason for the low capital intensity of the PPG project compared to other projects? - The lower capital intensity is attributed to the high quality of the resource and the use of new processing technologies designed to reduce the capital footprint [37][38] Question: What additional permits are required for the PPG project? - The company needs to apply for regional and water permits, which are expected to be approved in a few months [56][58] Question: How does the company plan to minimize equity dilution risk for shareholders? - The company has a strong track record of executing strategic financings and plans to leverage partnerships and project-level debt to minimize shareholder dilution [70][69] Question: What is the rationale for using $18,000 per ton as a long-term price for lithium? - The $18,000 price is aligned with third-party forecasts and is deemed necessary to incentivize new project developments over the next decade [74][73] Question: What is the current status of material quality and the timeline for achieving battery-grade product? - The company is making gradual improvements in product quality and aims to supply battery-grade product by 2026-2027 [81][82]

Financial Data and Key Metrics Changes - The company reported a revenue increase despite softer market prices, attributed to higher production volumes [5] - Average realized price for lithium carbonate was $7,400 per tonne, an 8% decrease compared to the previous quarter [6] - Operating costs decreased approximately 8% quarter on quarter, reaching $6,100 per tonne [6][7] Business Line Data and Key Metrics Changes - At Qachari Olaroz, production volumes reached 8,500 tonnes of lithium carbonate for the second quarter, with a total of 15,700 tonnes in the first half [6] - The company is confident in reaching its full-year production guidance of 30,000 to 35,000 tonnes [4] Market Data and Key Metrics Changes - Lithium prices have shown increased volatility, currently just over $10,000 per tonne, but the company believes lower prices are not sustainable due to strong global growth and the need for new supply [8][9] - The pricing discount received was approximately $2,000 per tonne, similar to Q1, reflecting taxes and reprocessing costs [26][47] Company Strategy and Development Direction - The growth strategy targets over 200,000 tonnes per year of lithium carbonate equivalent capacity, leveraging expansion at existing operations and regional growth projects [10] - The company aims to consolidate projects in the Pizuelos and Patos Grande Basins, positioning itself for one of the largest lithium operations globally [10][11] - Focus remains on operational efficiency, financial flexibility, and maximizing shareholder value while advancing growth initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage price volatility and maintain low production costs [17][18] - The company anticipates that the second half of the year will see larger volume production compared to the first half [44] - There is a strong demand from Ganfeng, indicating a well-sold order book for the company's products [40] Other Important Information - The company secured $120 million in new bank facilities to support working capital as operations advance [4] - A feasibility study for regional growth projects is expected to be completed by the end of the year [20] Q&A Session Summary Question: Impact of CATL shutting down mines in China on lithium market - Management is monitoring developments related to China's anti-involution policies and believes current pricing is unsustainable in the long term [16][18] Question: Pricing discounts and expectations for the rest of the year - The pricing discount was approximately $2,000, similar to Q1, and operational stability is expected to improve through Q3 and Q4 [26][28] Question: Visibility into Q3 and Q4 order book and pricing - The majority of the product is under offtake agreements, primarily with Ganfeng, ensuring strong demand [40] Question: Financial health of Ganfeng as a partner - Ganfeng is seen as a strong partner with access to capital and a focus on low-cost projects, prioritizing Argentina for investment [56][58]

Q2 2025 Performance - Revenue increased by 10% from $58 million in Q1 2025 to $64 million in Q2 2025[18] - Production volumes increased by 18% from 7,200 tonnes in Q1 2025 to 8,500 tonnes in Q2 2025[18] - Cash costs per tonne sold decreased by 8% from $6,634 in Q1 2025 to $6,098 in Q2 2025[18] - Sales price decreased by 8% from $8,085 per tonne in Q1 2025 to $7,400 per tonne in Q2 2025[18] - The company is on track to reach 2025 production guidance of 30,000-35,000 tonnes[17,22] Cost Optimization - Q2 operating costs reached $6,100 per tonne, below Feasibility Study estimates[25] - Prices have climbed 14.7% in past month[27,28] Growth Strategy - Targeting +200 ktpa LCE capacity combining Stage 2 and regional assets[29] - Targeting additional 40ktpa for Stage 2[31] - Targeting 150k for Regional Growth[31] - Significant progress toward formalizing a new joint venture to develop PPG, targeting 150,000 tpa capacity[17]

Core Insights - Lithium Argentina AG reported its first quarter 2025 results, highlighting a focus on cost discipline and operational optimization at the Cauchari-Olaroz lithium brine operation [1][2][3] Production and Operating Performance - Lithium carbonate production for Q1 2025 totaled 7,200 tonnes, a 15% decrease from Q4 2024, primarily due to planned maintenance [6] - The company reaffirmed its 2025 production guidance of 30,000 to 35,000 tonnes, expecting higher production volumes in the latter half of the year [6] - In April 2025, production capacity returned to over 85% following maintenance activities [6] Financial Performance - Revenue for Q1 2025 was $58 million, with an average realized price of approximately $8,085 per tonne of lithium carbonate sold [6] - The company reported a net loss of $7.2 million for Q1 2025, an improvement from a net loss of $10.2 million in the same period last year [8] - Cash operating costs were approximately $6,634 per tonne, maintaining a competitive position as a low-cost producer [2][8] Strategic Initiatives - The company is developing a 5,000 tonnes per annum demonstration plant in China to confirm new processing technology [6] - A letter of intent has been executed with Ganfeng to jointly develop the Pozuelos-Pastos Grandes projects, targeting a production capacity of up to 150,000 tonnes per annum of lithium carbonate equivalent [6] - Cauchari-Olaroz is advancing a Stage 2 expansion plan, considering an additional production capacity of 40,000 tonnes per annum [6] Financial Position - As of March 31, 2025, the company had $73.9 million in cash and cash equivalents and a $75 million undrawn credit facility with Ganfeng [11] - The company incurred $5 million in costs related to its corporate migration to Switzerland during Q1 2025 [11] - Minera Exar S.A. had approximately $218 million of net debt, with a new $150 million bank facility expected to close in Q2 2025 [11]

Core Insights - Lithium Argentina AG released its 2024 Sustainability Report titled "Lithium With Purpose," showcasing its Environmental, Social, and Governance (ESG) progress for the year 2024 [1]. ESG Achievements - The company completed an updated materiality assessment and conducted a community survey, which revealed a 68% positive opinion from local communities [3]. - There was a 52% reduction in carbon emissions per tonne of lithium carbonate produced [3]. - The water footprint was reduced by 67% per tonne of lithium carbonate produced [3]. - The company received three ISO certifications: ISO 45001 for Health and Safety, ISO 9001 for Quality, and ISO 14001 for Environmental management [3]. - Safety metrics improved in 2024 compared to 2023 [3].

Core Viewpoint - Lithium Argentina AG will release its first quarter 2025 earnings results on May 14, 2025, and will hold a conference call to discuss these results on May 15, 2025, at 10:00am ET [1][2]. Company Overview - Lithium Argentina operates the Cauchari-Olaroz lithium brine operation in Argentina in partnership with Ganfeng and is advancing additional lithium resources in the region [2]. - The company is publicly traded on both the TSX and NYSE [2]. Event Details - The earnings call will be accessible via a webcast on the company's Investor Relations website [1][2]. - The specific URL for the webcast is provided for attendees [2]. Contact Information - For further inquiries, the Investor Relations contact details are provided, including a telephone number and email address [3].

Core Viewpoint - Lithium Argentina AG has signed a Letter of Intent with Ganfeng Lithium Co. Ltd. to jointly develop the Pozuelos-Pastos Grandes basins in Argentina, which includes multiple lithium projects [1][2]. Group 1: Joint Development and Strategic Plans - The LOI establishes a framework for consolidating the Pozuelos-Pastos Grandes (PPG) projects and finalizing a regional development plan [2]. - The development plan aims to utilize solar evaporation and direct lithium extraction (DLE) technologies, targeting a combined capacity of up to 150,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) [2]. - The plan also includes the production of lithium chloride to enhance flexibility for battery market applications [2]. Group 2: Technological Advancements - A 5,000 tpa DLE demonstration plant is being constructed for the Cauchari-Olaroz lithium operation, which is jointly managed by Lithium Argentina and Ganfeng [3]. - The DLE demo plant is expected to improve processing efficiencies, reduce production costs, and lower the environmental impact through decreased water usage [3]. Group 3: Financing and Partnerships - Ganfeng and Lithium Argentina are exploring financing options for the PPG projects, including potential collaborations with customers and strategic partners for offtake and minority ownership interests [4]. - The formation of the joint venture for PPG is contingent upon several conditions, including the finalization of documentation and regulatory approvals [5].

Ownership and Interests - The Company holds a 44.8% interest in Cauchari-Olaroz, co-owned with Ganfeng Lithium Co., Ltd., which holds a 46.7% interest[39] - The Company has a control interest of 85.1% in Proyecto Pastos Grandes S.A. after Ganfeng acquired a 14.9% interest for $70 million[46] - The Company holds a 44.8% interest in Exar and an 85.1% interest in the Pastos Grandes Project, which exposes it to economic risks associated with operating in Argentina[72] - The Company holds a 44.8% interest in Cauchari-Olaroz, an 85.1% interest in the Pastos Grandes Project, and a 65% interest in the Sal de la Puna project[169] Financial Performance and Projections - Lithium prices have significantly decreased in 2023 and 2024 from their highs in 2022, affecting expected revenue levels[50] - The Company’s future production estimates are uncertain and may not align with projections in its technical reports[52] - The Company has a history of negative operating cash flow and anticipates continuing this trend until profitable commercial production is achieved at Cauchari-Olaroz[118] - The total outstanding loans advanced by the company to Cauchari-Olaroz, including accrued interest, amounted to $448 million as of December 31, 2024[208] - The Company may require additional financing to support the development and operation of its projects, which could have a dilutive effect on existing security holders[131] Operational Risks - The production operation at Cauchari-Olaroz requires sensitive chemical processing to produce battery-grade lithium carbonate, which poses operational risks[41] - The Company faces uncertainty in the long-term growth of the lithium market, which may negatively affect its projects and financial condition[71] - The Company’s operations may be adversely affected by global economic uncertainties, including armed conflicts and inflation[53] - Unexpected costs and delays are common in new mining operations, which may impact the Company's ability to achieve targeted production quantities and profitability[78] - The Company faces risks related to construction time and costs, skilled labor availability, and the need for governmental approvals for new mining operations[77] Regulatory and Compliance Issues - The Company may face increased costs due to compliance with Swiss corporate laws and SEC regulations following its Continuation[37] - The Company may incur higher legal and accounting expenses due to the need to comply with both Canadian and U.S. disclosure requirements[34] - Argentine regulators have broad authority to shut down operations that do not comply with regulations, which could impact the Company's projects[73] - The Company is subject to evolving environmental regulations in Argentina, which may increase compliance costs and environmental liabilities[87] - The Company must comply with stringent environmental regulations, which may require enhanced public disclosure and could delay development activities[89] Market and Economic Conditions - Inflation in Argentina reached 117.8% in 2024, impacting the Company's labor, commodity, and other input costs[56] - The Company operates in an emerging market, exposing it to high inflation rates, social unrest, and currency fluctuations[72] - The Company is subject to currency fluctuations, particularly between the U.S. dollar and Argentine peso, which may significantly affect its cash flows[136] - Current Argentine exchange controls could adversely affect the Company's ability to comply with financial obligations and raise capital[137] Strategic Transactions and Acquisitions - The Company completed the acquisition of Millennial Lithium on January 25, 2022, and Arena Minerals on April 20, 2023, making both companies wholly owned subsidiaries[157] - On October 3, 2023, the Company separated its North American business unit, retaining its Argentine business unit, which includes a 44.8% interest in Cauchari-Olaroz and a majority interest in Pastos Grandes[158] - Ganfeng acquired $70 million in newly issued shares of PGCo, representing a 14.9% interest, with proceeds allocated to advancing lithium projects in Argentina and reducing short-term debt[159] Shareholder and Market Dynamics - Significant shareholders, GM and Ganfeng, each hold approximately 9% of the outstanding shares, which may affect the liquidity and market price of the Company's securities[109] - The Company's shares are publicly traded on the TSX and NYSE, and their market price is influenced by various external factors, including the general condition of resource markets[143] - The Company’s shares began trading on the TSX and NYSE under the new symbol "LAR" following its corporate migration to Switzerland[165] Environmental and Social Risks - The Company faces inherent risks related to health and safety standards, which could adversely affect its reputation and operations[97] - Climate change legislation may lead to increased operating and capital costs, impacting the Company's business[106] - The physical risks of climate change, such as water shortages, could adversely affect production levels at the Cauchari-Olaroz project[107] - The lack of water management regulations in Argentina could lead to competitive extraction and production issues, adversely affecting operations[102] Corporate Governance and Management - The Company has established robust independence procedures to manage potential conflicts of interest among directors and officers[142] - The Company relies on key personnel for its growth, and any inability to retain or attract talent could adversely affect its future prospects[135] Production and Capacity - Cauchari-Olaroz achieved commercial production in October 2024 after sustained elevated production levels[164] - The Company produced approximately 25,400 tonnes of lithium carbonate during the year ended December 31, 2024, meeting its production guidance for Cauchari-Olaroz[165] - Cauchari-Olaroz's annual lithium carbonate production is projected to increase from 6,000 tons in 2023 to 25,400 tons in 2024, totaling 31,400 tons[204] - The Company plans to increase the initial production capacity from 25,000 tons per annum to 40,000 tons per annum of lithium carbonate[217]