Lithium Argentina Reports Third Quarter 2026 Results

(TSX:LAR) (NYSE:LAR) Lithium Argentina AG reported its third quarter 2026 results, highlighting strong operational and financial performance at the Cauchari-Olaroz project in Jujuy, Argentina. The company holds a 44.8% equity interest in Exar, the operating entity for Cauchari-Olaroz, which is jointly operated with Ganfeng. In Q3 2026, Cauchari-Olaroz produced 9,550 tonnes of lithium carbonate, a 3% increase from the previous quarter, operating at 95% of design capacity. Year-to-date production reached 28,490 tonnes, keeping the company on track to meet its full-year guidance of 35,000 to 40,000 tonnes. Cost of sales totaled $73 million, with cash operating costs of $5,801 per tonne of lithium carbonate sold. Revenue for the quarter was $184 million, with an average realized price of $17,580 per tonne and a cash operating margin of 67%. Adjusted EBITDA was $113 million, up from $110 million in the previous quarter, and net income increased to $37 million from $27 million. Operating cash flow was $95 million, and free cash flow from operations was $92 million. Cash distributions to Lithium Argentina and Ganfeng totaled $100 million in the quarter, with an additional $30 million distributed after quarter end, bringing the 2026 total to $230 million. Third-party net debt increased by $29 million to $171 million, and a $170 million three-year syndicated facility at SOFR plus 1.05% was closed at the project level, with $36 million drawn by quarter end. The Stage 2 Expansion Scoping Study was published on September 30, outlining plans to increase production capacity by 45,000 tpa of LCE, raising total capacity to approximately 85,000 tpa with an expected 40-year operating life. The after-tax NPV8% is $3.1 billion and IRR is 28.5% at $18,000/t lithium carbonate, with estimated operating costs of $5,006/t and initial capital costs of approximately $1.0 billion. The company is advancing an initial 10,000 tpa of the planned 45,000 tpa expansion, targeting first production in 2028, subject to regulatory approvals in Argentina and China. The Stage 2 expansion was approved under Argentina's RIGI in May 2026, and the EIA application has been submitted. Lithium Argentina holds a 33% equity interest in a joint venture with Ganfeng to develop the PPG project in Salta Province, Argentina, targeting 150,000 tpa of LCE across three phases. The RIGI application for PPG was submitted in Q1 2026, with approval expected by year-end. As of September 30, 2026, Lithium Argentina held $312 million in cash and cash equivalents. After quarter end, the company repurchased $200 million of its convertible notes due January 2027 for approximately $198 million in cash, with $59 million remaining outstanding. On September 15, 2026, the company issued a $180 million unsecured convertible debenture to a Ganfeng subsidiary, bearing a 4.0% coupon, maturing in six years, and convertible at $12.50 per share. The company is advancing plans for a secondary listing on the ASX. For Q3 2026, net income was $13.0 million, compared to a net loss of $64.5 million in Q3 2025, primarily due to the company’s share of income from Cauchari-Olaroz of $16.8 million, a $7.3 million gain on fair value remeasurement of convertible instruments, and the absence of a $9.3 million loss on the JEMSE receivable recognized in the prior-year quarter. Total assets of continuing operations were $821.7 million as of September 30, 2026, with cash and cash equivalents of $312.3 million. Total liabilities of continuing operations were $496.3 million. Exar EBITDA on a 100% basis was $116.4 million in Q3 2026, compared to $(39.7) million in Q3 2025.