Lithium Argentina (LAR) Q2 2025 earnings summary

Executive summary

• Achieved 8,500 tonnes of lithium carbonate production in Q2 2025, up 18% sequentially, operating at 85% of nameplate capacity, and on track to meet full-year guidance of 30,000–35,000 tonnes.

• Secured $120 million in new bank facilities to support working capital, refinance $108 million in short-term debt, and strengthen the financial position.

• Advanced consolidation and joint development of Pozuelos–Pastos Grandes basins with Ganfeng, targeting up to 150,000 tpa LCE, with feasibility study completion by year-end.

• Regional growth strategy aims for over 200,000 tpa LCE capacity by combining Stage 2 and regional assets.

• DLE demonstration plant engineering ongoing, with installation in Argentina targeted for 2026.

Financial highlights

• Q2 2025 revenue was $64 million, up 10% from Q1, with an average realized price of $7,400 per tonne, down 8% quarter-over-quarter.

• Operating costs declined 8% to $6,098 per tonne, now below feasibility study estimates.

• Net loss of $4.1 million in Q2 2025, compared to net income of $2.2 million in Q2 2024, mainly due to lower gains on financial instruments and higher equity compensation expense.

• Cash and cash equivalents stood at $68 million as of June 30, 2025.

• Exar, the 44.8% equity investee, had $233 million in net debt and closed $120 million in new bank debt facilities during the quarter.

Outlook and guidance

• On track to meet 2025 production guidance of 30,000–35,000 tonnes and maintain low-cost operations.

• Feasibility study for consolidated regional assets and up to 150,000 tpa LCE in PPG basins expected by year-end, with a formal investment decision to follow.

• Stage 2 expansion at Cauchari-Olaroz aims to add 40,000 tpa LCE, leveraging existing infrastructure and new processing technologies.

• DLE demonstration plant installation in Argentina targeted for 2026.

• Anticipate continued cost optimization and operational stability through 2026.