Lithium Argentina Reports Promising Operations and Financial Developments for 2024

Lithium Argentina AG reported strong results for 2024 with lithium carbonate production at 25,400 tonnes, exceeding expectations. The company forecasts increased output between 30,000 to 35,000 tonnes for 2025. Notably, operational costs decreased, and technological advancements are set to boost efficiency. The company also reduced its debt significantly while transitioning its corporate structure to Switzerland.

Lithium Argentina AG has announced its fourth-quarter and full-year results for 2024, emphasizing significant achievements at its Cauchari-Olaroz project, now recognized as Argentina’s largest lithium carbonate facility. In 2024, the company produced 25,400 tonnes of lithium carbonate, surpassing initial expectations with fourth-quarter output reaching 8,500 tonnes, a notable 25% increase from the previous quarter. The firm anticipates production to rise to between 30,000 and 35,000 tonnes in 2025, bolstered by planned operational enhancements to optimize recovery and reduce expenses.

The total cost of sales for 2024 was recorded at US$178 million, with cash operating costs at US$7,130 per tonne sold. In the fourth quarter, these costs declined to US$6,630 per tonne. For 2025, the company projects that cash operating costs will remain consistent, alongside sustaining capital expenditures estimated between US$600 to US$700 per tonne.

Technological innovation is at the forefront with the implementation of new processing techniques, including a solvent-based direct lithium extraction (DLE) process pioneered by Ganfeng Lithium Co. Ltd. A demonstration plant, aimed at producing 5,000 tonnes per annum, is expected to commence by the end of 2025. Additionally, the company is embarking on a Phase 2 expansion of the Cauchari-Olaroz project to increase production capacity by 40,000 tonnes per annum, taking advantage of both current infrastructure and new technologies.

Regionally, in partnership with Ganfeng, Lithium Argentina is advancing a comprehensive development strategy involving the integration of several projects in Salta, including Pozuelos-Pastos Grandes and its substantial stakes in Pastos Grandes (85%) and Sal de la Puna (65%). Through enhanced solar evaporation and DLE technology, the objective is to achieve a total production capacity of 150,000 tonnes per annum of lithium carbonate.

In terms of financial standing, Lithium Argentina successfully reduced its project-level debt from US$350 million to US$210 million in 2024. The company transitioned its operations from Canada to Switzerland in January 2025, adopting the name Lithium Argentina AG and listing on the TSX and NYSE under the ticker “LAR.” As of December 31, 2024, the company had US$86 million in cash, along with a US$75 million undrawn credit facility with Ganfeng. Its operating subsidiary, Minera Exar S.A., maintained around US$210 million in third-party debt, inclusive of US$50 million in local bonds and US$100 million in bank financing. By early 2025, Exar secured a new US$150 million credit facility, anticipated to enhance financial agility and operational capacity.

Lithium Argentina AG demonstrated remarkable growth in 2024, marked by exceeding production forecasts at its Cauchari-Olaroz project, where it took significant steps towards technological advancements and regional development. With a thoughtful financial strategy and ongoing expansions, the company is poised for increased production and enhanced efficiency in the coming years, cementing its position as a key player in the lithium industry.

Original Source: www.panorama-minero.com