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- **Record Production and Debt Facility**: Q3 2025 saw near-full capacity production, with a new $130M debt facility enhancing financial flexibility.
- **PPG Project Milestones**: Stage 1 environmental approval secured; construction to begin in H2 2026, targeting 2030 first production. Project NPV of $8.2B at 8% discount rate, IRR 33% at $18,000/tonne.
- **Ganfeng's Growth Strategy**: Focus on ESS, with LFP demand driving full-capacity battery operations. Long-term lithium price outlook of $18,000/tonne supported by supply constraints.
- **Cost Efficiency**: PPG's $2,000/tonne capital intensity and $5,000/tonne operating costs position it as a low-cost leader, leveraging DLE technology and modular construction.

**【Management Opening】**
- Kelly O'Brien introduced the call, highlighting the Q3 2025 earnings release and the PPG scoping study results. Key participants included Sam Pigott (CEO), Xiaoshen Wang (Ganfeng CEO), and Jason Luo (Ganfeng South America President). The call emphasized the partnership between Lithium Argentina and Ganfeng, focusing on operational achievements and future growth projects.

**【CEO Summary Section】**
- **Q3 2025 Performance**: The company achieved record production levels, with October reaching near-full capacity. A new $130 million debt facility was announced to enhance financial flexibility.
- **PPG Project Milestones**: Received environmental approval for Stage 1, with plans to submit RIGI filings in H1 2026. The project is expected to begin construction in H2 2026, targeting first production by 2030.
- **Strategic Focus**: Emphasized disciplined execution, cost optimization, and shareholder value through low-cost, scalable operations.

**【Ganfeng's Perspective】**
- Xiaoshen Wang highlighted Ganfeng's long-term vision, leveraging low-cost resources and vertical integration. The company sees ESS (Energy Storage Systems) as a growth driver, potentially surpassing EV demand. Ganfeng's battery business is operating at full capacity, driven by LFP (lithium iron phosphate) demand.

**【PPG Project Details】**
- **Capital and Operating Costs**: Stage 1 requires $1.1 billion, with total life-of-mine capital of $3.3 billion. Operating costs are projected at $5,000/tonne, competitive with existing operations.
- **Economic Metrics**: After-tax NPV of $8.2 billion at an 8% discount rate, with IRR of 33% at $18,000/tonne. Even at $12,000/tonne, IRR remains over 20%.
- **Resource Scale**: 15.7 million tonnes of measured and indicated LCE, with 6.7 million inferred tonnes. The hybrid DLE process aims to reduce water and energy use while simplifying purification.

**【Q&A Highlights】**
- **Capital Intensity**: PPG's $2,000/tonne capital intensity is half that of other greenfield projects, driven by high-grade brines and modular DLE technology.
- **Project Sequencing**: PPG Stage 1 construction will begin post-RIGI approval, with Cauchari-Olaroz Stage 2 and Mariana Stage 2 filings in H1 2026. Projects will be executed sequentially to manage resources and risk.
- **Market Outlook**: Xiaoshen Wang expects ESS demand to surpass EVs within a decade, with lithium prices supported by constrained supply growth. Current spot prices (~$12,000/tonne) are seen as short-term, with long-term pricing at $18,000/tonne justified by supply-demand dynamics.


Lithium Argentina AG(LAR)-20251110-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LAR

LAR fundamentals

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