LAR · Lithium Argentina AG

Lithium Argentina AG delivered a strong turnaround to net income of $7.5 million in Q1 2026 from a $7.2 million loss in Q1 2025, primarily propelled by its 44.8% share of $22.1 million income from the Cauchari-Olaroz project versus a prior loss share. This reflects robust operational performance at the lithium brine operation, which produced 9,660 tonnes (100% basis) at a realized price of $16,818 per tonne, generating $168 million revenue and $106 million adjusted EBITDA (100% basis) with cash operating costs of $5,391/tonne. The operation ran at 97% of design capacity, supporting full-year guidance of 35,000-40,000 tonnes. Company-level cash swelled 59% to $97.4 million, fueled by $52.4 million investing inflows from Exar loan repayments offsetting $5.9 million operating outflow. Strategic financing included a $130 million 6-year Ganfeng debt facility at SOFR+2.5%, enhancing refinancing flexibility for $258.8 million convertible notes due 2027. However, management flags material going concern doubt, hinging on Cauchari-Olaroz cash distributions to service debt amid expansion plans. Stage 2 expansion advances with RIGI approval expected Q2 2026 and updated resources of 28 million tonnes LCE. PPG JV with Ganfeng targets 150,000 tpa LCE phased development. CEO Pigott emphasized organic growth via project cash flows, positioning for scaled low-cost production without corporate dilution.