Lithium Argentina Reports Second Quarter 2025 Results

Core Viewpoint - Lithium Argentina AG reported continued operational improvements in Q2 2025, with production at Cauchari-Olaroz reaching over 85% of capacity and costs declining towards $6,000 per tonne, despite volatile lithium market conditions [1][2]. Production and Financial Performance - Lithium carbonate production totaled approximately 8,500 tonnes in Q2 2025, an 18% increase compared to Q1 2025, with a total of approximately 15,700 tonnes produced in the first half of 2025, on track to meet the 2025 guidance of 30,000 – 35,000 tonnes [7]. - The cost of sales for Q2 2025 was $63 million, with cash operating costs at $6,098 per tonne, reflecting an 8% decrease from Q1 2025 due to cost-optimization initiatives and higher production volumes [7]. - Revenue for Q2 2025 was $64 million, with an average realized price of approximately $7,400 per tonne of lithium carbonate sold, impacted by a decline in global lithium prices [7]. Regional Growth Strategy - The company advanced its regional growth strategy for the Pozuelos-Pastos Grandes basins, with significant progress made during the quarter and further updates expected shortly [2][8]. - A comprehensive feasibility study for the Pozuelos-Pastos Grandes basins, evaluating options for up to 150,000 tonnes per annum of lithium carbonate equivalent through a hybrid Direct Lithium Extraction process, is expected to be completed by the end of the year [8]. Financial and Corporate Overview - As of June 30, 2025, the company held $68 million in cash and cash equivalents, with total assets of $1,141.1 million and total liabilities of $252.8 million [10]. - The company reported a net loss of $4.1 million for Q2 2025, compared to a net income of $2.2 million in the prior-year period, primarily due to lower gains on financial instruments and higher equity compensation expenses [12]. - Exar, the 44.8% equity investee of Lithium Argentina, had approximately $233 million of net debt at the official foreign exchange rate as of June 30, 2025, and closed on $120 million in bank debt facilities during Q2 2025 [11].