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Lithium Argentina
(TSX:LAR)
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Rating:52Neutral
Price Target:
C$8.50
â–¼(-8.60% Downside)
Action:N/A
Date:09/24/26
Overall score reflects (1) weak reported profitability and cash generation in the provided financial statements, partially offset by a comparatively solid balance sheet; (2) bearish technical setup with the price below key moving averages and negative MACD; balanced by (3) a strong earnings call indicating solid operations, cash generation, and deleveraging, though tempered by commodity-price and expansion execution risks.
Positive Factors
Operating scale and cost base
High utilization and reiterated production guidance indicate that the core operation is functioning near design capacity, while lower unit costs improve resilience. A sub-$6k/t cost base can support durable margins and cash generation across the next several quarters.
Negative Factors
Persistent reported losses
The provided financial statements still show weak reported profitability, with zero revenue, negative gross profit, and substantial TTM losses. Until these results align with operational cash generation, earnings visibility and the company’s ability to self-fund growth remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating scale and cost base
High utilization and reiterated production guidance indicate that the core operation is functioning near design capacity, while lower unit costs improve resilience. A sub-$6k/t cost base can support durable margins and cash generation across the next several quarters.
Read all positive factors
Lithium Argentina (LAR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.38B
Dividend YieldN/A
Average Volume (3M)218.21K
Price to Earnings (P/E)―
Beta (1Y)3.02
Revenue GrowthN/A
EPS Growth-185.24%
CountryCA
Employees850
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.33
Shares Outstanding161,400,000
10 Day Avg. Volume242,863
30 Day Avg. Volume218,207
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.18
Price to Sales (P/S)0.00
P/FCF Ratio-29.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.70Price Target Upside68.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.27
Revenue Forecast (FY)N/A
Lithium Argentina Business Overview & Revenue Model
Company Description
Lithium Argentina AG operates as a resource and materials enterprise, primarily focused on developing lithium projects across Argentina. The company holds significant interests in the Cauchari-Olaroz project, situated in Jujuy province, and the Pa...
Lithium Argentina Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution, substantial margin and cash generation, meaningful deleveraging and improved liquidity, plus verified low carbon intensity—offset by temporary Q2 cost and timing headwinds, market price volatility, and pending permits/financing for larger expansions. On balance the positives (consistent high utilization, strong EBITDA/free cash flow, large net debt reduction, attractive cost structure and financing access) substantially outweigh the listed challenges.Positive Updates
Consistent High Utilization
Operation averaged ~95% of design capacity in 2026 (YTD), demonstrating stable operations and on track to meet full-year production guidance of 35,000–40,000 tons with objectives to sustain rates above 40,000 tons.
Negative Updates
Q2 Cost Headwinds
Q2 cash operating costs were modestly higher versus prior periods due to a planned shutdown, higher energy costs and a stronger Argentine peso; management noted an ~single-quarter increase (described as noise) but still expects mid-$5k/ton guidance to hold for the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Consistent High Utilization
Operation averaged ~95% of design capacity in 2026 (YTD), demonstrating stable operations and on track to meet full-year production guidance of 35,000–40,000 tons with objectives to sustain rates above 40,000 tons.
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 production guidance of 35,000–40,000 t LCE (having averaged ~95% of the 40,000 t design capacity year‑to‑date), with no planned maintenance shutdowns and an expectation of strong production and sales in H2; Q2 produced adjusted EBITDA of ~$110M (up 4% QoQ) and ~$141M of free cash flow, bringing H1 adjusted EBITDA to >$200M, while realized prices averaged ~$19.5k/t in Q2 (management cites a $20k/t price scenario implying ~ $460M 2026 adjusted EBITDA on a 100% basis); unit economics remain robust with YTD cash operating costs ~ $5.6k/t (sub‑$6k/t, down from ~$8k/t at start‑up), a Q2 cash operating margin of ~70%, JV net debt reduced from $256M to $142M (‑$114M), $160M of JV distributions YTD (LAR’s share $75M) plus $27M received post‑quarter, new JV unsecured facilities of $220M (including a $170M 3‑yr facility <5% variable), corporate cash of $100M and total liquidity of $230M (including a $130M undrawn Ganfeng facility at ~SOFR+2.5%/~6%), a verified 2025 product carbon footprint of 1.4 t CO2e/t LCE (Scope 1+2) with ~97% solar energy, and near‑term growth actions (stage‑2 scoping study due end‑Q3, early works and modest debottlenecking including ~2–3 wells at ~ $2.5M each expected to add ~2–3k tpa).Lithium Argentina Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
60
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -456.59K | -498.58K | -560.00K | -1.08M | -215.39K | -909.47K |
| EBITDA | -36.79M | -37.61M | -7.00K | 37.95M | -113.47M | -3.55M |
| Net Income | -53.28M | -76.77M | -15.23M | 1.31B | -93.57M | -38.49M |
Balance Sheet | ||||||
| Total Assets | 1.15B | 1.10B | 1.13B | 1.06B | 1.02B | 817.34M |
| Cash, Cash Equivalents and Short-Term Investments | 99.55M | 61.02M | 85.54M | 122.29M | 352.10M | 510.61M |
| Total Debt | 248.25M | 233.73M | 208.31M | 202.97M | 207.58M | 264.98M |
| Total Liabilities | 312.42M | 282.33M | 240.29M | 226.09M | 232.55M | 281.03M |
| Stockholders Equity | 787.23M | 766.48M | 828.27M | 828.93M | 784.00M | 536.32M |
Cash Flow | ||||||
| Free Cash Flow | -19.62M | -30.48M | -23.48M | -66.84M | -71.90M | -55.06M |
| Operating Cash Flow | -19.62M | -30.48M | -21.81M | -58.97M | -65.22M | -53.18M |
| Investing Cash Flow | 60.70M | 6.39M | -85.86M | -39.10M | -230.88M | -115.83M |
| Financing Cash Flow | -9.70M | -337.81K | 68.77M | 12.12M | -23.46M | 531.41M |
Lithium Argentina Technical Analysis
Negative
9.30
Price Trends
8.90
Negative
10.94
Negative
10.36
Negative
Market Momentum
-0.31
Positive
41.57
Neutral
47.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LAR, the sentiment is Negative. The current price of 9.3 is above the 20-day moving average (MA) of 8.82, above the 50-day MA of 8.90, and below the 200-day MA of 10.36, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LAR.
Lithium Argentina Risk Analysis
Lithium Argentina disclosed 40 risk factors in its most recent earnings report. Lithium Argentina reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lithium Argentina Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
Lithium Argentina Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lithium Argentina Seals Ganfeng JV and $180 Million Strategic Financing
Positive
Aug 24, 2026
Lithium Argentina has finalized a new joint venture with Ganfeng Lithium to consolidate three adjacent lithium brine projects in Salta Province into the Pozuelos-Pastos Grandes basin-wide development. The PPG JV, held 67% by Ganfeng and 33% by Lit...
Business Operations and StrategyPrivate Placements and Financing
Lithium Argentina Secures $220 Million Debt to Fund Cauchari-Olaroz Expansion
Positive
Aug 5, 2026
Lithium Argentina AG has secured $220 million in new unsecured debt facilities for its Cauchari-Olaroz lithium brine operation in Argentina, comprising a $50 million two-year facility and a $170 million three-year facility priced at under 5 percen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.