Lithium Argentina AG Q4 2025 Earnings Call Summary

• Cauchari-Olaroz reached 97% capacity in Q4 2025, driven by optimized brine management, wellfield stability, and reduced reagent usage.

• Cash costs declined 30% since Q1 2024 to $5,600 per ton, reflecting structural improvements in variable costs rather than just fixed-cost dilution.

• The long-term cost estimate was revised downward by 17% to $5,400 per ton, positioning the asset in the first quartile of the global cost curve.

• Management attributes the successful ramp-up to the design of the stage one plant and the quality of the underlying brine chemistry.

• The company maintains a strong liquidity position with $95,000,000 in cash and a new $130,000,000 debt facility to support growth without equity dilution.

• Strategic positioning focuses on serving global markets directly from the Americas, leveraging one of the few major lithium chemical sources outside China.

• 2026 production guidance is set at 35,000 to 40,000 tons, prioritizing stable operations and long-term optimization over aggressive volume growth.

• Management expects significant EBITDA generation in 2026, estimating approximately $460,000,000 based on current market prices of $20,000 per ton.

• The Stage 2 expansion at Cauchari-Olaroz (45,000 tons) will utilize the RIGI framework to ensure fiscal benefits and capital repatriation flexibility.

• The PPG project is being developed as a phased 150,000-ton operation, with financing plans focused on minority partners to avoid shareholder equity contributions.

• Demand outlook is increasingly driven by Energy Storage Systems (ESS), which management believes is currently under-forecasted by global analysts.

• The operation is highly insulated from Middle East geopolitical volatility, with direct energy exposure (diesel/natural gas) representing less than 2% of total operating costs.

• Total measured and indicated resources at Cauchari-Olaroz increased by 42%, reinforcing its status as one of the world’s largest lithium brine assets.

• Management is evaluating Direct Lithium Extraction (DLE) for Stage 2 but notes that conventional technology has set a high bar for capital and operating efficiency.

• Sodium-ion batteries are viewed as a substitution risk only if lithium prices spike significantly above current levels.

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