Lithium Argentina swings to profit as Cauchari-Olaroz ramps up production

Lithium Argentina (NYSE:LAR) reported that its core asset, the Cauchari-Olaroz brine operation, produced 9,660 tonnes of lithium carbonate during the first quarter on a 100% basis.

The project, operated by Minera Exar—a joint venture with Ganfeng Lithium—generated $168 million in revenue at an average realized price of $16,818 per tonne.

Notably, the operation maintained a competitive cost profile with cash operating costs of $5,391 per tonne, resulting in an adjusted EBITDA for Exar of $105.8 million and a net income of $49.3 million.

At the corporate level, Lithium Argentina reported a consolidated net income of $7.5 million, a marked improvement compared to the $7.2 million net loss recorded in the same period last year.

The swing to profitability reflects the transition from development to a steady-state operational phase.

The company bolstered its balance sheet during the quarter, closing a $130 million debt facility with Ganfeng Lithium and ending the period with $97.4 million in cash.

Meanwhile, management confirmed that the technical and engineering work for the Stage 2 expansion at Cauchari-Olaroz is well underway.

This expansion aims to increase total annual capacity to 45,000 tonnes per annum (tpa) of lithium carbonate.

The development is supported by a recent 42% increase in the project’s measured and indicated resource estimate, highlighting the long-term scalability of the basin.