Lithium Argentina Earnings: Cauchari-Olaroz Production Ramp-Up on Track as Unit Costs Start to Fall

Our key takeaway from Lithium Argentina's third-quarter results was the ramp-up of the firm's first lithium project, Cauchari-Olaroz, remains on track. Management said it planned to achieve a 75%-80% capacity utilization production rate in 2025, above the roughly 55% rate in 2024. Additionally, the lithium produced is improving in quality as the quality discount to spot price was reduced to $1,500 per metric ton from $2,000 during the quarter. With our outlook largely unchanged, we're maintaining our USD 20 fair value estimate for Lithium Argentina. Our CAD fair value estimate rises to CAD 28 from CAD 27 due to currency movements since our last update.