07:39 AM EDT, 05/12/2026 (MT Newswires) -- Lithium Argentina (LAR.TO) was at last look up 0.8% in US premarket trade after it swung Tuesday to a profit year over year in the first quarter, and even though that missed expectations the company said "with improving market conditions and a proven operating platform, we believe we are one of the strongest positioned producers to add low-cost production capacity".

The miner booked a net income of US$7.5 million, or $0.05 per share basic and diluted, in the three months ended March 31, reversing a net loss of $7.2 million, or a loss of $0.04 per share, recorded a year ago.

Analysts expected Lithium Argentina to post earnings of $0.13 per share, according a consensus estimate compiled by FactSet.

The change was primarily driven by a $22.1 million share of income from the Cauchari-Olaroz Project, compared to a $0.5 million share of loss in Q1 2025, reflecting improved operating results at Exar due to higher realized lithium carbonate, the company said.

CEO Sam Pigott said: "Cauchari-Olaroz continues to deliver exceptional performance, sustaining production near design capacity for a second consecutive quarter while delivering first-quarter cash operating costs below $5,400 per tonne. This operational consistency is translating directly into cash flow, with the operation expected to convert over 90% of first-quarter EBITDA into cash in 2026.

"Building on this foundation, the Stage 2 expansion at Cauchari-Olaroz is progressing well, and we intend to grow organically by leveraging Stage 1 cash flow alongside project-level debt, as necessary. Following strong performance in recent quarters, Cauchari-Olaroz has distributed approximately $100 million ($46 million for our share) since the beginning of the year. At PPG, we continue to see strong interest from strategic partners and customers, leveraging the combined efforts of Ganfeng and Lithium Argentina to support the project's equity requirements, positioning us to grow without the need to dilute shareholders at the corporate level.

"With improving market conditions and a proven operating platform, we believe we are one of the strongest positioned producers to add low-cost production capacity. We have a pipeline that we believe can support growth of four to five times what we have built to date. Importantly, we believe this can be achieved in a disciplined, phased development approach funded through project-level options and operating cash flow, ultimately delivering the strongest possible return to our shareholders."

Shares in LAR rose about 1% in Canada and the U.S. yesterday.