Lithium Argentina Reports Second Quarter 2025 Results
ZUG, Switzerland, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Lithium Argentina AG ("Lithium Argentina" or the "Company") (TSX:LAR) (NYSE:LAR) today announced its second quarter 2025 results. Unless otherwise stated, results are presented in United States dollar.
Sam Pigott, Lithium Argentina's President and CEO, commented:
The Company delivered continued operational improvements in the second quarter, keeping us firmly on track to meet full-year production guidance. At Cauchari-Olaroz, production reached more than 85% of capacity, with costs declining towards $6,000/t, supported by higher volumes and targeted cost-reduction initiatives. While lithium market conditions have been more volatile in recent months, the Company remains well-positioned through disciplined execution, cost control and a focus on safe, efficient operations.
We also advanced our regional growth strategy for the Pozuelos-Pastos Grandes basins, with significant progress made during the quarter and further updates expected shortly. Our approach is to create a more efficient operating structure that harnesses new technologies, economies of scale and builds off our track record at Cauchari-Olaroz. As we advance these longer-term growth initiatives, we are focused on strengthening the balance sheet while preserving and maximizing shareholder value.
Highlights
Cauchari-Olaroz1
Production: Lithium carbonate production totaled approximately 8,500 tonnes in the second quarter of 2025, an 18% increase compared to the first quarter.
Lithium carbonate production for the six months ended June 30, 2025, was approximately 15,700 tonnes, keeping the operation on track to achieve its 2025 guidance of 30,000, 35,000 tonnes.
Operating Costs: The cost of sales for the second quarter of 2025 was $63 million, with cash operating costs of $6,098 per tonne2 of lithium carbonate sold.
Efforts to reduce costs continue and during the second quarter of 2025 costs were approximately 8% lower than the first quarter and reflected the cost-optimization initiatives that have been implemented and higher production volumes during the second quarter.
Pricing: Revenue for the second quarter of 2025 totaled $64 million, with an average realized price3 of approximately $7,400 per tonne of lithium carbonate sold.
As expected, the realized price at Cauchari-Olaroz was impacted by the continued decline in global lithium prices during the quarter.
1 Information in this section is presented on a 100% basis of the Cauchari-Olaroz operation; the Company's economic interest is 44.8%
2 Cash operating costs includes all expenditures incurred at the site such as brine management, lithium plant processing, site and provincial office overheads and inventory adjustments. These costs also include project general and administrative costs and sales logistics costs. Cash operating cost per tonne is a non-GAAP financial measure and does not have a standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers.
3 Refer to section titled "Non-IFRS and Other Financial Measures" below.
Regional Growth and Cauchari-Olaroz Expansion
Regional Growth: Lithium Argentina and Ganfeng continue to advance the joint development of the Pozuelos-Pastos Grandes basins, which includes Ganfeng's wholly-owned Pozuelos-Pastos Grandes project, the jointly-owned Pastos Grandes project (85% owned by Lithium Argentina and 15% owned by Ganfeng), and Sal de la Puna project (65% owned by Lithium Argentina and 35% owned by Ganfeng) in Argentina (collectively, "PPG").
A comprehensive feasibility study, evaluating options for up to 150,000 tpa of lithium carbonate equivalent ("LCE") through a hybrid Direct Lithium Extraction ("DLE") process will be completed by the end of the year.
Ganfeng and Lithium Argentina are jointly exploring financing options, including collaboration with potential customers and strategic partners for offtake and minority ownership interests.
DLE Demonstration Plant: Development of the 5,000 tpa demonstration plant continues in China.
Engineering is ongoing in China and installation of the demonstration plant in Argentina is targeted for 2026.
Stage 2 Expansion: Cauchari-Olaroz is advancing an expansion plan considering an additional production capacity of 40,000 tpa of LCE ("Stage 2").
Stage 2 is expected to utilize the existing Stage 1 infrastructure and solar evaporation process, while also incorporating the new processing technologies.
An application for Stage 2 is being prepared under Argentina's large investments' incentive regime (RIGI) to support potential tax and fiscal benefits.
Financial and Corporate
As of June 30, 2025, Lithium Argentina held $68 million in cash and cash equivalents.
As of June 30, 2025, Exar, the 44.8% equity investee of Lithium Argentina that owns Cauchari-Olaroz, had, on a 100% basis, approximately $233 million of net debt at the official foreign exchange ("FX") rate.
During the second quarter of 2025, Exar closed on $120 million in bank debt facilities, with additional debt capacity available, subject to necessary approvals.
These loans were competitively priced at an approximate rate of SOFR plus 2.5%, including fees.
INVESTOR WEBCAST
AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR10:00am ET ON Monday, August 11, 2025.
Please use the following link to access:Second Quarter 2025 Results Webcast
FINANCIAL RESULTS
Selected consolidated financial information of the Company is presented as follows:
(in US$ million except per share information)
Three Months ended June 30,
2025$
2024$
Expenses
(11.0
)
(21.5
)
Net (loss)/income
(4.1
)
2.2
(Loss)/income per share, basic
(0.03
)
0.01
(Loss)/income per share, diluted
(0.03
)
0.01
(in US$ million)
As at June 30, 2025$
As at December 31,2024$
Cash and cash equivalents
68.0
