Lithium Argentina (LAR) Q1 2025 earnings summary

Executive summary

• Q1 2025 production volumes declined 15% due to planned maintenance at Cauchari-Olaroz, but operations rebounded to over 85% capacity in April.

• Cost discipline and process efficiency kept cash operating costs low, supporting reaffirmed 2025 production guidance of 30,000–35,000 tonnes LCE.

• Strategic partnership with Ganfeng advanced, including a letter of intent to jointly develop projects targeting up to 150,000 tpa LCE.

• 2024 sustainability report published, highlighting progress in environmental and social performance, including reductions in carbon footprint and LTIFR.

• Focus remains on capital flexibility and advancing growth projects with Ganfeng.

Financial highlights

• Q1 2025 production was 7,200 tonnes LCE, with revenue of $58 million and an average realized price of $8,085 per tonne.

• Cash operating costs per tonne were $6,634 in Q1 2025, slightly lower than expected.

• Cost of sales was $54 million; net loss for Q1 2025 was $7.2 million, an improvement from $10.2 million in Q1 2024.

• Cash and cash equivalents stood at $73.9 million as of March 31, 2025.

• Maintenance-related costs were deferred to Q2.

Outlook and guidance

• Full-year 2025 production guidance reaffirmed at 30,000–35,000 tonnes, with higher volumes anticipated in the second half.

• Cost optimization initiatives target a further 5–10% reduction in operating costs.

• Long-term operating costs targeted at $6,500 per tonne, with further reductions expected from DLE technology.

• Growth strategy targets over 200,000 tpa LCE capacity combining Stage 2 and regional assets.

• Easing of FX restrictions in Argentina anticipated to improve capital flow and economic environment by year-end.