Lithium Argentina Reports Quarterly Net Loss

Written by Amir Richani for Industrial Info Resources (Sugar Land Texas)

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Summary

Lithium Argentina recorded a net loss of US$64.5 million in Q3. However, its production from the Cauchari-Olaroz projects remains solid, and it is expected to meet this year's guidance. The company's Pozuelos-Pastos Grandes project has already received its environmental permit.

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Widening Net Loss for Lithium Argentina

Lithium Argentina (Zug, Switzerland) reported a net loss of US$64.5 million in Q3, compared with a net loss of US$2 million during the same period last year. The financial results were driven by a share loss of US$52.5 million from the Cauchari-Olaroz mine.

Lithium mining companies have been hit by the collapse of lithium prices, triggered by oversupply and slower-than-expected demand. Some companies have decided to delay expansions and curtail output, waiting for the market to recover.

Despite this, the company reached an output of 8,300 tons of lithium carbonate equivalent (LCE) at the Cauchari-Olaroz mine in Q3, the company's only operational lithium mine in Argentina. Based on current forecast, Lithium Argentina is expected to be within this year's guidance of 30,000 to 35,000 tons of LCE.

Given the success in its Cauchari-Olaroz operations, the company is currently advancing on a plan to expand the mine's production by another 45,000 tons of LCE per year. The company is preparing to submit this expansion under Argentina's Incentive Regime for Large Investments (RIGI), which offers fiscal and legal benefits to infrastructure projects exceeding US$200 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

The Pozuelos-Pastos Grandes Projects

Ganfeng Lithium (Xinyu, China) and Lithium Argentina also announced the scoping study for the integration of the Pozuelos and Pastos Grandes basins (PPG), in which the Chinese company will hold 67% of the shares while the Canadian miner will own the remaining 33%.

The project is expected to have a total capacity of 150,000 tons per year of LCE, constructed across three stages of 50,000 tons per year each, with a 30-year project life. Together, the three basins have measured and indicated resources of 15.1 million tons with a capital cost of US$3.3 billion and operating costs of US$5,027 per ton.

The companies have already received environmental impact assessment approval for stage 1 of the project and expect to submit a RIGI application in the first half of next year.

Argentina's Lithium Progress

From January through September, Argentina exported US$594 million in LCE, lithium hydroxide and lithium chloride, a 38.4% increase from last year. Meanwhile, lithium exports in terms of volumes have grown 60.5% year on year, according to the country's Secretary of Mines.

Key Takeaways

• Lithium Argentina reported a net loss of US$64.5 million in Q3, compared to a net loss of US$2 million during the same period last year.
• The company reached an output of 8,500 tons of lithium carbonate equivalent (LCE) at the Cauchari-Olaroz mine in Q3.
• The Pozuelos-Pastos Grandes project is expected to produce 150,000 TPA of LCE per year and to incur capital costs of US$3.3 billion.

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