Lithium Argentina Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Lithium Argentina had an exceptional year in 2025, with the Cauchari-Olaroz operation nearing full capacity and achieving low production costs, generating significant cash flow [1][2] - The company is focusing on growth opportunities in 2026, particularly through the PPG and Stage 2 projects, which are expected to enhance lithium supply in the Americas [2] Financial Performance - In 2025, Lithium Argentina produced approximately 34,100 tonnes of lithium carbonate, achieving a 34% increase over 2024 and meeting the high end of production guidance [4][8] - The cash operating cost per tonne of lithium carbonate sold was $5,618, reflecting operational efficiencies [8] - Revenue for Q4 2025 was $92 million, with an average realized price of approximately $9,049 per tonne, expected to rise to around $17,000 per tonne in Q1 2026 [8] - The company reported a net loss of $76.8 million for 2025, compared to a loss of $15.2 million in 2024, primarily due to increased losses from the Cauchari-Olaroz project [13] Production and Expansion Plans - The Cauchari-Olaroz operation is advancing a Stage 2 expansion plan to increase production capacity by 45,000 tonnes per annum of lithium carbonate equivalent [7] - The company has set a production guidance of 35,000 - 40,000 tonnes of lithium carbonate for 2026, with ongoing optimization efforts to support long-term performance [8] Joint Ventures and Strategic Developments - Lithium Argentina and Ganfeng are forming a new joint venture to consolidate their respective projects, with Ganfeng holding a 67% interest and Lithium Argentina holding 33% [10] - The PPG project aims for integrated development targeting 150,000 tonnes per annum of lithium carbonate equivalent production across three phases, with a Scoping Study indicating an after-tax NPV of $8.1 billion at a lithium carbonate price of $18,000 per tonne [12] Cash Position and Financing - As of December 31, 2025, Lithium Argentina held $61 million in cash and cash equivalents, and completed an $85 million cash distribution from Cauchari-Olaroz [12] - The company secured a $130 million debt facility from Ganfeng, which has a six-year term and an interest rate of SOFR plus 2.5%, enhancing financial flexibility [12]