Lithium Argentina Reports Third Quarter 2026 Results
Lithium Argentina AG reported its third-quarter 2026 financial results, posting a net income of $13.0 million compared to a net loss of $64.5 million in the prior-year period. This improvement was driven by enhanced operational performance at the Cauchari-Olaroz project and gains on financial instruments. The company generated $95 million in operating cash flow and $92 million in free cash flow from operations during the quarter, with total cash distributions to shareholders and partners reaching $230 million for the year.
Corporate financials for the period showed income from continuing operations of $13.6 million, while adjusted EBITDA stood at $(6.1) million. As of September 30, 2026, the company held $312.3 million in cash and cash equivalents, with net debt at $171 million, an increase of $29 million during the quarter.
At the Cauchari-Olaroz operations, which are 100% owned, production reached 9,550 tonnes of lithium carbonate in Q3 2026, a 3% increase quarter-over-quarter, bringing year-to-date production to 28,490 tonnes. Revenue from the site totaled $184 million, reflecting an average realized price of $17,580 per tonne. Cash operating costs were recorded at $5,801 per tonne, with total cost of sales amounting to $73 million. This resulted in a 67% cash operating margin and an adjusted EBITDA of $113 million, up from $110 million in Q2 2026.
Financial metrics for the Exar joint venture included a net income of $36.8 million, Exar EBITDA of $116.4 million, and Exar adjusted EBITDA of $112.5 million. Exar free cash flow was reported at $72.2 million, with free cash flow from operations at $91.8 million. The company distributed $100 million in cash distributions in Q3, with an additional $30 million distributed subsequent to quarter-end, totaling $230 million for 2026.
Strategic developments included the publication of a Scoping Study for the Stage 2 expansion on September 30, 2026. The project targets a production capacity increase of 45,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE), bringing total capacity to approximately 85,000 tpa. The study outlines an after-tax net present value (NPV) at an 8% discount rate of $3.1 billion and an internal rate of return (IRR) of 28.5% at a lithium carbonate price of $18,000/t. Estimated initial capital costs are approximately $1.0 billion, with estimated operating costs of $5,006/t. The company is targeting first production for an initial 10,000 tpa expansion in 2028. The project was approved under Argentina's RIGI regime in May 2026, and an Environmental Impact Assessment (EIA) application has been submitted.
In the PPG joint venture, Lithium Argentina holds a 33% equity interest with Ganfeng. The development plan targets 150,000 tpa of LCE across three phases. A RIGI application was submitted in Q1 2026, with approval expected by year-end.
On the financing front, the company issued a $180 million unsecured convertible debenture to a subsidiary of Ganfeng on September 15, 2026. The instrument carries a 4.0% coupon, has a six-year maturity, and is convertible at $12.50 per share. Subsequent to the quarter-end, Lithium Argentina repurchased $200 million of convertible notes due January 2027 for approximately $198 million in cash, leaving approximately $59 million outstanding. Additionally, the company closed a $170 million three-year syndicated facility at SOFR plus 1.05% in July, with $36 million drawn at the end of Q3. The company is also advancing plans for a secondary listing on the Australian Securities Exchange.
Sam Pigott, CEO, commented on the results: "Our third quarter reflects the strength and consistency of Stage 1 of the Cauchari-Olaroz operations in Jujuy, Argentina. With a 67% cash operating margin and $95 million in operating cash flow, Cauchari-Olaroz continues to demonstrate, quarter after quarter, its ability to generate substantial cash."
Pigott added: "At the corporate level, the strategic investment from Ganfeng, advancements in the development of Stage 2 at Cauchari-Olaroz and the closing of the PPG joint venture mark important milestones in strengthening our balance sheet and consolidating our development portfolio."
The scientific and technical information in this release was reviewed by David Burga, P.Geo., and Mark King, PhD P.Geo., FGC, who serve as the Qualified Persons. Non-GAAP measures such as EBITDA and adjusted EBITDA are defined as net income before tax, finance costs/income, and depreciation and amortization. Adjusted EBITDA further excludes share of investee income/loss, share-based compensation, FX gains/losses, fair value gains/losses on financial instruments, impairments, JEMSE receivable losses, and discontinued operations. Exar cash costs include C1 (cash operating costs) comprising site expenditures, overheads, and logistics, and C2 (total cash costs) which adds selling costs, duties, and royalties. Free cash flow is defined as net cash from operating activities less capital expenditures, plus/minus net cash flows with associates/JVs, while free cash flow from operations excludes net cash flows with associates/JVs.