Lithium Argentina (LAR) Q4 2024 earnings summary

Executive summary

• Achieved record production at Cauchari-Olaroz in 2024, exceeding guidance and becoming Argentina's largest lithium operation, with over 90% capacity utilization in December.

• Completed corporate migration to Switzerland with 99% shareholder approval, maintaining NYSE and TSX listings and enhancing strategic flexibility.

• Reduced project-level debt from $350 million to $210 million, securing longer-term, lower-cost debt facilities and de-risking the balance sheet.

• Strengthened partnership with Ganfeng, leveraging operational expertise, financial resources, and access to low-cost capital.

• Leadership team in Argentina transformed to enhance operational focus.

Financial highlights

• 2024 lithium carbonate production totaled 25,400 tonnes, exceeding guidance; Q4 production was 8,500 tonnes, up 25% quarter-over-quarter.

• 2024 revenue reached $198 million, with Q4 revenue at $67 million (100% basis); average realized price was $7,800 per tonne, and Q4 realized price was $8,300 per tonne.

• Cash operating costs for 2024 were $7,131 per tonne, improving to $6,630 per tonne in Q4 as capacity increased.

• General and administrative costs decreased by 30% year-over-year, surpassing the 25% reduction target.

• Maintained a cash balance of $86 million at year-end, with a $75 million undrawn credit facility.

Outlook and guidance

• 2025 production guidance set at 30,000–35,000 tonnes, with higher output expected in H2 due to planned plant downtime in H1 for optimization.

• Operating costs for 2025 expected to remain similar to 2024, with sustaining CapEx of $600–$700 per tonne.

• Long-term cash operating cost estimate updated to $6,543 per tonne, with further reductions targeted through process optimization and DLE technology integration.

• Stage 2 expansion and regional growth plans target up to 150,000 tpa LCE capacity, with a long-term vision of over 200,000 tpa in Argentina.

• RIGI incentive program in Argentina provides 30-year stability, reduced taxes, and cash repatriation for large-scale investments.