Lithium Argentina Reports Third Quarter 2024 Results
VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Lithium Americas (Argentina) Corp. ("Lithium Argentina," the "Company," or "LAAC") (TSX:LAAC) (NYSE:LAAC), today announced its third quarter results.
"During the quarter, we were pleased to close the Pastos Grandes transaction with our strategic partner, Ganfeng," commented Sam Pigott, President and CEO. "Proceeds from the transaction, in addition to funds from Ganfeng, resulted in an over $100 million reduction in debt at Caucharí-Olaroz. We are still advancing financing options to replace the remaining short-term debt at the project and provide additional flexibility to support our future growth plans."
Mr. Pigott continued by saying, "The operations at Caucharí-Olaroz continues to progress well during the third quarter as production volumes reached about 6,800 tonnes, a 21% increase compared to the second quarter of the year. Production is currently operating at approximately 75-80% of design capacity with a focus on sustaining higher production levels. It is expected that these production levels will be maintained through the end of the year and into 2025. Consequently, we still expect production volumes for 2024 to fall within our previous estimate of 20,000, 25,000 tonnes this year."
He closed by saying, "Our focus remains on optimizing operations and decreasing our costs. We are committed to delivering value and will continue to monitor market conditions closely as we evaluate our expansion plans and work towards our long-term goals."
Highlights
Operational Highlights at Caucharí-Olaroz
During the three months ended September 30, 2024, Caucharí-Olaroz produced approximately 6,800 tonnes of lithium carbonate, up 21% from the second quarter of 2024.
Caucharí-Olaroz is currently operating at approximately 75, 80% of the design capacity of 40,000 tonnes per year and is expected to maintain this level of production during the fourth quarter of 2024 and into 2025.
In October 2024, Caucharí-Olaroz achieved commercial production after reaching elevated production levels for a sustained period of time. As a result, depreciation of certain capital assets will begin in the fourth quarter of 2024.
Production guidance of 20,000, 25,000 tonnes of lithium carbonate in 2024 remains unchanged.
Production continues to be sold primarily to Ganfeng Lithium Co. Ltd. ("Ganfeng") with realized price of approximately $8,000 per tonne during the three months ended September 30, 2024.
During the ramp-up, realized pricing is based on China battery-grade price adjusted for Chinese value added taxes ("VAT") and other deductions related to the removal of trace levels of impurities to achieve battery quality lithium carbonate.
As a result of lower levels of impurities, beginning in September 2024, this price deduction for additional processing costs, was adjusted from $2,000 to $1,500 per tonne.
Since the end of the third quarter of 2024, lithium prices have declined further with the most recent realized price for Caucharí-Olaroz at approximately $7,000 per tonne.
Financial and Corporate Highlights
As of September 30, 2024, Lithium Argentina had $92 million in cash and cash equivalents and maintained its undrawn $75 million credit facility with Ganfeng.
As of September 30, 2024, Minera Exar S.A. ("Exar") had, on a 100% basis, approximately $202 million of US dollar and US dollar-linked debt at the official FX rate.
During the third quarter of 2024, Ganfeng and Lithium Argentina contributed funds to Exar to reduce its leverage by over $110 million.
Ganfeng and the Company continue to advance financing options to replace short-term debt with longer-term financing for Exar.
In August 2024, Ganfeng Lithium acquired $70 million in newly issued shares of Proyecto Pastos Grandes S.A. ("PGCo"), the Company's Argentinian subsidiary holding the Pastos Grandes project ("Pastos Grandes") in Salta, Argentina, representing a 14.9% interest in Pastos Grandes (the "Pastos Grandes Transaction").
INVESTOR WEBCAST
______________
AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR 10:00am ET ON WEDNESDAY, NOVEMBER 6, 2024.
Please use the following link to access: Third Quarter 2024 Results Webcast
FINANCIAL RESULTS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information)
Quarter ended September 30,
2024
2023
