Key Highlights

  • Cauchari-Olaroz Revenue rose 6% from the second quarter to USD 184 million in the third quarter, as sales volumes climbed 18% while realized lithium prices fell about 10%, management said on the November 10, 2026 call.
  • Adjusted EBITDA edged up to USD 113 million from USD 110 million, with cash operating costs near USD 5,800 per tonne and a 67% cash operating margin, according to management.
  • The operation generated about USD 92 million of free Cash Flow and distributed USD 100 million to joint venture partners, about USD 230 million year to date, while its net Debt rose from USD 142 million to USD 171 million.
  • Year-to-date production reached 28,490 tonnes against full-year guidance of 35,000 to 40,000 tonnes, and management said fourth quarter output should exceed 9,000 tonnes.

Volume and Cost Discipline Offset a 10% Price Decline

Lithium Argentina (NYSE:LAR) discussed third-quarter 2026 results on a call on November 10, 2026. Management described Cauchari-Olaroz, the Argentine lithium brine operation it owns with a partner, as running at about 95% of design capacity. Revenue was USD 184 million, up 6% sequentially, because sales volumes rose 18% even as realized prices fell about 10%. Cash operating costs eased to roughly USD 5,800 per tonne from USD 5,900 in the prior quarter, and management said costs have stayed below USD 6,000 per tonne in every 2026 quarter. The call gave no company-level Net Income or per-share earnings, so the figures here describe the operation.

Balance Sheet Repair: A USD 180 Million Convertible and Note Buyback

At the corporate level, management said it closed a USD 180 million strategic Investment from Ganfeng in September through a six-year unsecured convertible Debenture with a 4% coupon and a conversion price of USD 12.50 per share. That helped fund the October repurchase of USD 200 million of convertible notes due January 2027, leaving about USD 59 million that management intends to repay at Maturity from more than USD 100 million of cash on hand. At the joint venture level, a USD 170 million three-year Facility and a USD 50 million two-year facility replaced existing debt. Management said that financing a modular expansion without issuing Equity is a priority and that dilution at current prices is off the table.

Stage 2 Expansion, PPG and Lithium Price Risk

A scoping study outlines a 45,000 tonne Stage 2 expansion that would lift capacity to about 85,000 tonnes a year, with an after-tax net present value of USD 3.1 billion and an internal rate of return of 28.5% at a USD 18,000 per tonne lithium carbonate price on a 100% basis, and initial Capital of about USD 1 billion. Management plans an initial 10,000 tonne direct lithium extraction module targeting 2028, subject to permits and with no minimum spending commitment. It expects Argentina's investment regime approval for PPG by year-end, while a Chinese technology export permit may come early next year. Management said that even at USD 10,000 per tonne its model shows EBITDA margins near 30%.

Where Things Stand

Cost control and Volume did the work. Lithium Argentina (NYSE:LAR) described a cash-generative operation that kept a 67% cash margin despite a roughly 10% price decline, and it used the Ganfeng convertible to retire most of its 2027 notes. The caveat is that these are management's call remarks at the asset level, and the sales jump partly reflects shipment catch-up, with fourth quarter sales expected at similar levels. Next markers are the PPG investment regime approval, the January note repayment and 10,000 tonne module details expected early next year.