Shares of Lithium Argentina AG (NYSE: LAR) surged 7.46% in pre-market trading on Monday following the announcement of positive results from the Pozuelos-Pastos Grandes (PPG) lithium brine project Scoping Study and the receipt of environmental approval for Stage 1 of the project.
The company, in partnership with Ganfeng Lithium, revealed compelling economics for the PPG project, with an after-tax NPV8% of $8.1 billion and an IRR of 32.7% at a lithium carbonate price of $18,000 per tonne. The study outlines a phased development approach, targeting an initial production capacity of 50,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE), scalable to 150,000 tpa over three stages.
Investors are particularly encouraged by the project's low-cost profile, with projected operating cash costs of $5,027 per tonne and all-in sustaining costs of $5,351 per tonne over the project's life. The receipt of the Environmental Impact Statement (DIA) for Stage 1 from the Salta government marks a significant milestone, paving the way for project development. Additionally, Lithium Argentina reported strong Q3 2025 results for its Cauchari-Olaroz operation, with production on track to exceed the low end of 2025 guidance, further boosting investor confidence in the company's operational capabilities.
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