Lithium Argentina AG

Second-quarter adjusted EBITDA was approximately $110 million, up 4% from the first quarter, and year-to-date adjusted EBITDA was over $200 million. Realized prices averaged around $19.5 thousand per ton in Q2, cash operating costs averaged around $5.6 thousand per ton year to date, and Q2 cash operating margin reached 70%. The operation generated $141 million of free cash flow from operations in Q2, and JV net debt fell from $256 million to $142 million, a reduction of $114 million in one quarter. For 2026, management said Cauchari-Olaroz has averaged 95% of design capacity and remains on track to produce 35,000-40,000 tons for the full year. At the corporate level, Lithium Argentina ended the quarter with $100 million of cash and $230 million of total liquidity, including $130 million in an undrawn 6-year Ganfeng facility, and the JV also completed $220 million of new unsecured debt facilities.

Samuel Pigott framed the quarter as proof that Cauchari-Olaroz is delivering on its design: reliable production, low costs, and strong cash generation. He said the business is operating with high conviction in both stage 2 and PPG, and that the company is taking a disciplined, phased approach rather than forcing growth. His tone was confident and upbeat, especially around the asset quality, execution, and the ability to expand while de-risking the balance sheet.

The CFO-related commentary emphasized liquidity, deleveraging, and access to low-cost capital. Management said the JV closed $220 million of new unsecured debt facilities, including a $170 million 3-year facility in early August with a variable rate currently under 5%, and that corporate liquidity was $230 million at quarter-end, including $100 million of cash and $130 million of undrawn debt capacity. They also noted $27 million in post-quarter distributions from Cauchari-Olaroz and expected additional distributions in the second half if cash generation stays strong.

Analysts focused on the production cadence, whether Q2 cost pressure was recurring, the timing of stage 2, the scope and cost of debottlenecking, and financing progress for PPG. Management said there is no planned maintenance shutdown in the second half, so production should be strong, and that stronger sales should follow as timing normalizes. On costs, they said the Q2 increase was tied to the planned shutdown, energy costs, and a stronger peso, but they still expect the mid-$5 thousand per ton range for the rest of the year. On stage 2 and PPG, they said the scoping study is expected by the end of Q3, the schedule was not really a delay, and RIGI approval for PPG is expected by year-end and is key to bringing in third-party financing or a minority partner.