ZUG, Switzerland, March 17, 2025 (GLOBE NEWSWIRE) -- Lithium Argentina AG (“Lithium Argentina” or the “Company”) (TSX: LAR) (NYSE: LAR) today announced its fourth quarter and full year 2024 results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.

Sam Pigott, Lithium Argentina’s President and CEO, commented:

Operationally, 2024 was a standout year for the Company, and I am extremely pleased with the results of our team, together with our partner Ganfeng. Less than 12 months after the chemical plant’s completion, Cauchari-Olaroz became the largest lithium carbonate operation in Argentina. In December, the operation surpassed 90% capacity utilization, demonstrating the long-term performance potential of the operation and execution of the team.

Additionally, we were able to substantially de-risk the operation’s balance sheet. Project-level debt was reduced from $350 million at the start of last year to $210 million on a 100% basis. Supported by Ganfeng’s access to low-cost capital, we secured longer-term debt facilities with international banks at competitive rates with extended maturities.

For 2025, our focus is on optimizing the operation further with initiatives aimed at improving quality and better position the business for years to come. A key priority is the integration of new processing technologies developed by Ganfeng, including a solvent extraction DLE process that leverages our higher-quality brine resources and solar evaporation process. We plan to integrate this technology using our Stage 1 facilities and a commercial-scale 5,000 tpa demonstration plant, which is expected to begin commissioning later this year.

While our primary focus remains on Stage 1, we look forward to detailing our longer-term growth plans for Stage 2 and regional development in Salta. We will continue to collaborate with our partner to develop these projects utilizing new processing technologies to improve cost efficiencies while leveraging the expertise of operational team in Argentina.

Positive momentum in Argentina, strong long-term market fundamentals and smart strategic investments today, will position us well as we pursue new technology to enhance production and efficiency and complete enhanced studies all in an effort to leverage growth opportunities in partnership with Ganfeng in Argentina.

Highlights

Cauchari-Olaroz (information presented on a 100% basis, the Company’s economic interest is 44.8%)

Lithium Production: Lithium carbonate production totaled 25,400 tonnes in 2024, exceeding the high-end of production guidance1.
Fourth quarter lithium carbonate production was 8,500 tonnes, representing a 25% increase compared to the previous quarter, and achieved 85% of design capacity.
2025 Guidance: For 2025, lithium carbonate production is guided to be between 30,000 – 35,000 tonnes.
Lithium production is expected to be higher during the second half of 2025 reflecting planned shutdowns scheduled during the first half of the year, designed to increase recoveries in the chemical process and reduce costs.
Operating Costs: Cost of sales in 2024 was $178 million with cash operating costs2 of $7,130 per tonne of lithium carbonate sold.
Cost of sales during the fourth quarter of 2024 was $67 million and cash operating costs were $6,630 per tonne of lithium carbonate sold during the same period.
For 2025, operating costs are expected to be similar to those in 2024 as the operation completes ongoing optimization efforts aimed at increasing recoveries and improving product quality.
Sustaining capex2 for 2025 is expected to be approximately $600-$700 per tonne.
Pricing: Revenue in 2024 was $198 million with average realized price3 of approximately $7,800 per tonne of lithium carbonate sold.
At current market reference prices of approximately $10,400 per tonne for battery-quality lithium carbonate, the realized price is about $8,300 per tonne, reflecting the additional costs for processing, taxes and logistics.
Following a review of product quality and pricing formula for 2025, the pricing adjustment to the battery-quality lithium carbonate reference prices was reduced to reflect improved product quality and market conditions.
Technical Report: In January 2025, the Company filed an updated technical report for the 40,000 tonnes per annum (“tpa”) lithium carbonate plant (“Stage 1”), providing updated operational, cost and economic parameters for Cauchari-Olaroz4.
The revised long-term cash operating cost estimate, based on current operating performance, is approximately $6,543 per tonne of lithium carbonate.
The after-tax NPV(8%) for Stage 1 is estimated at $3.6 billion on a 100% basis, using long-term price forecast provided by an independent consulting firm.
Regional Growth / Cauchari-Olaroz Expansion

Demonstration Plant: A 5,000 tpa demonstration plant on the solvent extraction (“SX”) process is being integrated into Stage 1. Once complete, we expect to confirm the new processing technology on a commercial scale to support future growth plans in Argentina.
The demonstration plant utilizes advanced processing technologies developed by Ganfeng Lithium Co. Ltd. (“Ganfeng”) in China, including a solvent extraction-based direct lithium extraction (“DLE”) process.
The new processing technologies are designed to leverage the solar evaporation process and high concentration brine resources to improve recoveries and reduce the processing requirements while minimizing fresh water and reagent consumption.
In early March of 2025, the Province of Jujuy approved the permit modification to implement the demonstration plant with commissioning expected to begin by the end of 2025.
Stage 2 Expansion: Cauchari-Olaroz is advancing an expansion plan considering an additional production capacity of 40,000 tpa of LCE (“Stage 2”).
Stage 2 is expected to utilize the existing Stage 1 infrastructure and solar evaporation process and include the new processing technologies.
An application is being prepared for Stage 2 under the large investments’ incentive regime (RIGI) in Argentina.
Regional Growth: The Company and Ganfeng continue to advance a regional development plan on the separate development-stage projects, including Ganfeng’s Pozuelos-Pastos Grandes and the jointly-owned Pastos Grandes (85% owned by Lithium Argentina) and Sal de la Puna (65% owned by Lithium Argentina), in the Province of Salta.
Based on a phased development approach that utilizes solar evaporation and new processing technologies, the regional growth plan aims for a production capacity of up to 150,000 tpa of LCE.
Financial and Corporate

In January 2025, the Company completed the Continuation from Canada to Switzerland.
As part of the Continuation, the Company changed its name to Lithium Argentina AG and began trading on the TSX and NYSE under the new ticker symbol “LAR”.
As of December 31, 2024, Lithium Argentina had $86 million in cash and cash equivalents with a $75 million undrawn credit facility with Ganfeng.
As of December 31, 2024, Minera Exar S.A. (“Exar”) had, on a 100% basis, approximately $210 million of US dollar and US dollar-linked third-party debt at the official foreign exchange (“FX”) rate including:
$50 million in bonds issued in Argentina with an approximate three-year maturity and an interest rate of 8.0%.
$100 million in a bank debt facility with a three-year term, subject to regulatory approval for the full term.
In early 2025, Exar secured an additional $150 million bank facility, which is expected to be finalized in Q2 2025.
The new facility provides increased financial flexibility, at a lower cost of capital, and a three-year maturity, subject to regulatory approval.
INVESTOR WEBCAST

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AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR 10:00am ET ON TUESDAY, March 18, 2025.

Please use the following link to access:
Fourth Quarter 2024 Results Webcast