Lithium Argentina Convertible Notes: $200M Bought Back Early

Lithium Argentina has bought back $200 million of its convertible notes due January 2027 for about $198 million, its third-quarter report said on November 10, 2026. Two months earlier it sold a $180 million, six-year convertible debenture to its project partner Ganfeng.

Key points

Lithium Argentina AG (TSX and NYSE: LAR) repurchased $200 million of its convertible notes due January 2027 for about $198 million in cash after the quarter ended September 30, 2026.
About $59 million of the notes is still outstanding, and the company says it plans to repay it at or before maturity.
On September 15, 2026, it issued a $180 million unsecured convertible debenture to a Ganfeng subsidiary, paying 4.0% a year for six years and convertible into shares at $12.50.
Lithium Argentina held $312 million in cash and cash equivalents on September 30, 2026, against $61.1 million at the end of 2025.
Cauchari-Olaroz, the Jujuy lithium operation it owns 44.8% of with Ganfeng, paid out $230 million to its two owners during 2026.

What did Lithium Argentina do with its convertible notes?

It bought back most of the issue about two months before it falls due. According to Lithium Argentina's 2025 annual report on Form 20-F, the notes were sold in December 2021, total $258.75 million, pay 1.75% a year and mature on January 15, 2027. The company says it bought back $200 million of them for about $198 million, roughly 99 cents per dollar of face value by our calculation against the 20-F's terms, leaving about $59 million to repay.

Term	2021 convertible notes	2026 Ganfeng debenture
Amount	$258.75 million, about $59 million still outstanding	$180 million
Coupon	1.75% a year	4.0% a year
Maturity	January 15, 2027	Six years from September 15, 2026
Holder	Investors in a December 2021 private placement	A Ganfeng subsidiary
Conversion	Into Lithium Argentina shares, on the indenture's terms	Into shares at $12.50 each

The notes were sold just before lithium prices peaked. The U.S. Geological Survey's Mineral Commodity Summaries 2026 puts the annual average U.S. contract price of battery-grade lithium carbonate at $63,700 per ton in 2022 and $9,000 per ton in 2025, so the notes approach maturity in a far cheaper lithium market than the one they were raised in. Lithium Argentina reports an average realized price of $17,580 per tonne for the third quarter of 2026.

What is the Ganfeng convertible debenture?

It is $180 million of unsecured debt that Ganfeng can turn into Lithium Argentina shares at $12.50 each. Issued on September 15, 2026 to a Ganfeng subsidiary, it pays a 4.0% annual coupon and matures six years from issuance.

Ganfeng is more than a lender here. It operates Cauchari-Olaroz jointly with Lithium Argentina through Exar, the operating company, and is its partner in the PPG joint venture in Salta Province, in which Lithium Argentina holds 33%. CEO Sam Pigott names the Ganfeng investment among the quarter's corporate milestones for the balance sheet.

Where does Lithium Argentina's cash come from?

Mostly from distributions out of Cauchari-Olaroz. The operation paid $100 million to Lithium Argentina and Ganfeng during the third quarter and $30 million more after the quarter ended, bringing its distributions for 2026 as a whole to $230 million, on a 100% basis.

On that same basis, Stage 1 produced 9,550 tonnes of lithium carbonate in the quarter, ran at 95% of design capacity and earned revenue of $184 million at a 67% cash operating margin. It generated $95 million of operating cash flow. In July, Exar closed a $170 million three-year syndicated facility at SOFR plus 1.05%, of which $36 million was drawn at quarter end.

With a 67% cash operating margin and $95 million in operating cash flow, Cauchari-Olaroz continues to demonstrate, quarter after quarter, its ability to generate substantial cash. — Sam Pigott, CEO, Lithium Argentina

At the corporate level, Lithium Argentina reported net income of $13.0 million for the quarter, against a net loss of $64.5 million a year earlier.

What does the Lithium Argentina refinancing mean for CFOs?

Our analysis: Lithium Argentina bought back most of its 2027 maturity before it came due, in a year in which it also took in distributions from the operation it co-owns and six-year money from the partner it shares that operation with. The new debenture pays a higher coupon than the 2021 notes and runs six years from issuance, trading a cheaper coupon for a longer runway.

For finance teams with a convertible coming due, the deal sets out the choices plainly: buy the debt back early at close to par, lean on distributions from a jointly owned operation, and decide whether a strategic partner's capital is worth the coupon and conversion price it asks. It sits alongside other recent CFO Drive coverage of how companies handle maturities, such as Akamai's 2027 convertible refinancing and Codexis's venture debt refinancing.

Frequently asked questions

How much of Lithium Argentina's 2027 debt is still outstanding?

About $59 million of the convertible notes due January 2027 remains, and Lithium Argentina says it intends to repay it at or before maturity.

At what price can Ganfeng convert its debenture into shares?

At $12.50 per Lithium Argentina common share, under the September 15, 2026 debenture.

How much lithium does Cauchari-Olaroz expect to produce in 2026?

Lithium Argentina guides to 35,000 to 40,000 tonnes of lithium carbonate for the year and says it is on track for the midpoint, with 28,490 tonnes produced through September.

How much will the Cauchari-Olaroz Stage 2 expansion cost?

A scoping study published September 30, 2026 puts initial capital at about $1.0 billion to add 45,000 tonnes a year of capacity, with a first 10,000 tonnes targeted for 2028, subject to approvals in Argentina and China.

Where is Lithium Argentina listed?

It trades as LAR on the Toronto Stock Exchange and the New York Stock Exchange, and it is preparing a secondary listing on the Australian Securities Exchange.

Lithium Argentina clears most of its 2027 convertible notes early and takes six-year money from Ganfeng