Lithium Argentina (LAR) Q1 2026 earnings summary

Executive summary

• Cauchari-Olaroz operated at 97% of nameplate capacity in Q1 2026, producing 9,700–9,660 tonnes of lithium carbonate and generating significant cash flow.

• Realized lithium prices rose to just under $17,000/ton, up from $9,000/ton in Q4 2025, supporting a threefold increase in adjusted EBITDA to $106 million.

• $100 million in cash was distributed from Cauchari-Olaroz since the start of the year, with $46–$48 million attributable.

• Completed a $130 million 6-year debt facility, strengthening the balance sheet and supporting expansion.

• Advancing Stage 2 expansion and de-risking the PPG project through partnerships and financing plans.

Financial highlights

• Q1 2026 revenue reached $168 million, with adjusted EBITDA at $106 million, up from $30 million in Q4 2025.

• Cash operating costs dropped to $5,391/ton, a 33% reduction since early 2024, positioning the operation among the lowest-cost globally.

• Over 90% of EBITDA is expected to convert to free cash flow in 2026.

• Cost of sales for Q1 2026 was $65 million, with gross margin improvement driven by higher prices and lower costs.

• Net income for Q1 2026 was $7.5 million, reversing a net loss of $7.2 million in Q1 2025.

Outlook and guidance

• 2026 production guidance remains at 35,000–40,000 tonnes of lithium carbonate.

• At lithium prices of $20,000–$30,000/ton, expected 2026 EBITDA is $460–$630 million (100% basis); guidance range is $370M–$630M depending on prices.

• Stage 2 expansion at Cauchari-Olaroz targets an additional 45,000 tonnes/year, with permitting and development plans advancing.

• PPG project aims for 150,000 tpa LCE capacity across three phases, leveraging shared infrastructure.

• Realized price discount to market is 6–7%, with potential for improvement as product quality and consistency increase.