Lithium Argentina AG reports strong 2024 results, producing 25,400 tonnes of lithium carbonate. The company projects increased production for 2025 of 30,000-35,000 tonnes. Key advancements include new processing technologies and regional expansions, alongside a reduction in project-level debt. Financial health remains stable, with significant cash reserves and a favorable credit facility.
Lithium Argentina AG has announced its fourth-quarter and full-year 2024 results, showcasing significant operational and financial achievements at its Cauchari-Olaroz project, now recognized as Argentina’s largest lithium carbonate operation. In 2024, the company produced 25,400 tonnes of lithium carbonate, surpassing earlier projections, while the fourth quarter produced 8,500 tonnes—an increase of 25% over the previous quarter and reaching 85% of design capacity. For 2025, production is anticipated to range between 30,000 and 35,000 tonnes, fueled by growth in the latter half of the year, post scheduled shutdowns intended for optimizing chemical recovery and cost reduction.
Operating costs demonstrated a notable performance in 2024, with total sales amounting to US$178 million and cash operating costs at US$7,130 per tonne sold. In the fourth quarter, these costs improved to US$6,630 per tonne. The company expects 2025 operating costs to remain consistent, estimating sustaining capital expenditures between US$600 and US$700 per tonne.
Lithium Argentina is making strides in implementing advanced processing technologies from Ganfeng Lithium Co. Ltd., particularly a solvent-based direct lithium extraction (DLE) method. A demonstration plant with a capacity of 5,000 tonnes per annum (tpa) is slated to launch by the year’s end in 2025, marking a significant innovation for the Phase 1 facilities. Moreover, the company is working on Phase 2 expansion of Cauchari-Olaroz, which will add 40,000 tpa of additional production capacity, optimized by new technologies and existing infrastructure. Additionally, a petition to merge this expansion into Argentina’s Large Investment Incentive Regime (RIGI) is being prepared.
In collaboration with Ganfeng, Lithium Argentina is spearheading a regional development strategy that includes the integration of several projects in Salta, such as Pozuelos-Pastos Grandes. The plan, which incorporates major stakes of 85% in Pastos Grandes and 65% in Sal de la Puna, is aimed to achieve lithium carbonate production of up to 150,000 tpa utilizing both solar evaporation and DLE technology.
The company successfully decreased its project-level debt from US$350 million to US$210 million during 2024. Recently, it transitioned from Canada to Switzerland, adopting the name Lithium Argentina AG and securing listings on the TSX and NYSE under the ticker “LAR.” By the end of 2024, the company reported US$86 million in cash and equivalents, complemented by an undrawn US$75 million credit facility from Ganfeng. Additionally, Minera Exar S.A., its subsidiary in Argentina, maintained approximately US$210 million in third-party debt, including US$50 million in local bonds and US$100 million in financing. In early 2025, Exar successfully secured a new US$150 million credit facility expected to be finalized in the second quarter, providing advantageous terms to enhance financial flexibility.
In conclusion, Lithium Argentina AG has demonstrated remarkable operational progress and sound financial health in its 2024 operations, reinforcing its position as a leader in lithium carbonate production. With projected increases in output and strategic technological advancements, the company is well-positioned for continued growth in 2025 and beyond, solidifying its role in the lithium market while also managing financial obligations effectively.
Original Source: www.panorama-minero.com
