Lithium Americas (Argentina) Corp.

The company said second-quarter adjusted EBITDA was approximately $110 million, up 4% from the first quarter, and that prices averaged around $19.5 thousand per ton in the quarter. Year to date, cash operating costs averaged around $5.6 thousand per ton, while second-quarter cash operating margin reached 70%; management also said second-quarter adjusted EBITDA translated into $141 million of free cash flow from operations, partly helped by a working-capital drawdown. Net debt at the joint venture level declined from $256 million to $142 million, a reduction of $114 million in one quarter, and $160 million had been distributed year to date, of which $75 million was Lithium Argentina’s share. For 2026, management reiterated full-year production guidance of 35,000-40,000 tons and said the operation has averaged 95% of design capacity; at current lithium prices of $20 thousand per ton, it estimates 2026 adjusted EBITDA of approximately $460 million on a 100% basis. At the corporate level, the company ended the quarter with $100 million of cash and $230 million of total liquidity, including $130 million in an undrawn six-year Ganfeng facility. Management said Cauchari-Olaroz closed $220 million of new unsecured debt facilities at the JV level, including a $170 million three-year facility closed in early August with a variable rate currently under 5%.

Samuel Pigott framed the quarter as proof that Cauchari-Olaroz was delivering what it was designed to deliver: reliability, low cost production, and strong cash generation. He emphasized that the operation is running strongly at 95% of design capacity, that the cost base has been reduced from roughly $8,000 per ton at startup to a consistent sub-$6,000 level, and that the company is using the cash flow to strengthen the balance sheet and fund growth. His tone was confident and upbeat, especially on the quality of the asset base, the conviction behind stage 2 and PPG, and the possibility of an ASX secondary listing to broaden the investor base.

The CFO was not the main speaker, but management’s financial commentary highlighted strong operating leverage, liquidity, and deleveraging. The company said cash operating costs averaged around $5.6 thousand per ton year to date, EBITDA was about $110 million in Q2, free cash flow from operations was $141 million, and JV net debt fell to $142 million after a $114 million quarterly reduction. Liquidity was also described as strong, with $100 million of cash and $230 million of total liquidity at the corporate level, plus the $130 million undrawn Ganfeng facility and the new $220 million of JV debt facilities.

Analysts focused on production cadence, sales timing, cost pressure, stage 2 timing, debottlenecking, and PPG financing. Management said no planned maintenance shutdowns are expected in the back half, so production should be very strong, and that lower Q2 sales were mainly a timing issue that should normalize later in the year. On costs, management said the Q2 bump reflected the planned shutdown, higher energy costs, and a stronger peso, but there were no structural changes; on stage 2, they said the scoping study is targeted for before the end of Q3 and that the timeline was not really a delay, just alignment with Ganfeng. On PPG, management said RIGI approval is the key milestone and that dialogue with authorities has been positive, with approval expected by year-end.