(All amounts in US$ unless otherwise
indicated)
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium
Americas” or the “Company”) has reported its financial
and operating results for the three months ended March 31, 2024
(“Q1 2024”) and has filed its condensed consolidated interim
financial statements (“Financials”) and management’s
discussion and analysis (“MD&A”).
HIGHLIGHTS
Thacker Pass
- Site preparation for major earthworks has been completed and
Thacker Pass is prepared for the commencement of major
construction, expected in the second half of 2024.
- The Company continues to focus on increasing the level of
detailed engineering, alongside advancing procurement and execution
planning, in advance of issuing full notice to proceed
(“FNTP”), which is expected in the second half of 2024.
Detailed engineering is over 30% design complete to date.
- On March 12, 2024, the Company received a conditional
commitment (“Conditional Commitment”) from the U.S.
Department of Energy (“DOE”) for a $2.26 billion loan under
the Advanced Technology Vehicles Manufacturing (“ATVM”) Loan
Program consisting of $1.97 billion in aggregate principal to fund
eligible construction costs of the processing facilities at Thacker
Pass, targeting to produce an initial 40,000 tonnes per year of
battery grade lithium carbonate ("Phase 1"), plus interest
to be accrued during construction, which is estimated to be $290
million over a three-year period (the "DOE Loan").
- On March 12, 2024, the Company provided an update to the
estimated total capital cost (“CAPEX”) for Phase 1
construction. CAPEX has been revised to $2.93 billion to reflect
estimates of key updated quantities and execution planning tied to
increased engineering progress, use of union labor through a
National Construction Agreement (Project Labor Agreement)
(“PLA”) with North America’s Building Trades Unions
(“NABTU”) for construction of Thacker Pass, development of
an all-inclusive housing facility for construction workers, updated
equipment pricing and a larger project contingency.
- During the three months ended March 31, 2024, $62.5 million of
construction capital costs and other project-related costs were
capitalized.
Corporate
- As of March 31, 2024, the Company had approximately $147
million in cash and cash equivalents.
- On April 22, 2024, the Company completed an underwritten public
offering (the “Offering”) of 55 million common shares (the
“Common Shares”) at a price of $5.00 per Common Share (the
“Issue Price”) for aggregate gross proceeds of $275 million,
resulting in net proceeds to the Company of approximately $263
million.
- The Offering, together with the DOE Loan, satisfies the funding
condition to closing General Motors Holdings LLC ("GM")
second tranche investment. At the same time, the Offering and GM
funding will allow the Company to meet the financing-related
condition related to closing the DOE Loan Conditional Commitment.
These financings are expected to fund Thacker Pass Phase 1
construction capital expenditures.
“I am proud of what the Lithium Americas team has accomplished
so far this year despite challenging lithium market conditions,"
said Jonathan Evans, President and Chief Executive Officer of
Lithium Americas. “Thacker Pass is now the only large-scale
integrated battery-quality lithium carbonate project in North
America with a clear path to production. We have all construction
permits in hand and our construction financing and execution
readiness are substantially de-risked. We continue to advance
detailed engineering and project planning ahead of making the final
investment decision, which we expect to do later this year. Our
team is focused on delivering Thacker Pass to strengthen North
America’s battery supply chain and ensure that the economic
benefits are directed toward American workers, companies and
communities.”
TECHNICAL INFORMATION
The scientific and technical information in this news release
has been reviewed and approved by Rene LeBlanc, PhD, SME, Vice
President, Growth and Product Strategy of the Company, and a
”qualified person” as defined under National Instrument 43-101 and
Subpart 1300 of Regulation S-K under the United States Securities
Act of 1933.
FINANCIALS
Selected consolidated financial information is presented as
follows:
(in US$ million except per share
information)
Three months ended March 31,
2024
2023
$
$
Expenses
5.5
5.6
Net loss
6.0
1.7
Loss per share – basic
0.04
0.01
(in US$ million
As at March 31, 2024
As at December 31, 2023
$
$
Cash and cash equivalents
147.2
195.5
Total assets
436.5
439.5
Total long-term liabilities
7.9
7.5
During Q1 2024, net loss increased due to the recognition of
losses on the fair value of financial instruments and higher
general and administrative and equity compensation expenses
reflecting the full costs of the Company operating as a stand-alone
entity, subsequent to the separation transaction on October 3,
2023.
During Q1 2024, total assets were substantially unchanged as
expenditures capitalized for Thacker Pass were offset by a
corresponding reduction in cash and settlement of prepaids at
December 31, 2023 that were capitalized as Thacker Pass
construction costs in the three months ended March 31, 2024.
This news release should be read in conjunction with the
Company’s Financial Statements and MD&A for the quarter ended
March 31, 2024, which are available on the Company’s issuer profile
on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
ABOUT LITHIUM AMERICAS
Lithium Americas is committed to responsibly developing the
100%-owned Thacker Pass project located in Humboldt County in
northern Nevada, which hosts the largest known Measured and
Indicated lithium resource in North America. The Company is focused
on advancing Thacker Pass Phase 1 toward production; targeting
nameplate capacity of 40,000 tpa of battery-quality lithium
carbonate. The Company and its engineering, procurement and
construction management contractor, Bechtel, entered into a PLA
with NABTU for construction of Thacker Pass. The three-year
construction build is expected to create approximately 1,800 direct
jobs. Lithium Americas’ shares are listed on the Toronto Stock
Exchange and New York Stock Exchange under the symbol LAC. To learn
more, visit www.lithiumamericas.com or follow @LithiumAmericas on
social media.
FORWARD-LOOKING INFORMATION
This news release contains certain “forward-looking information”
within the meaning of applicable Canadian securities legislation,
and “forward-looking statements” within the meaning of applicable
United States securities legislation (collectively referred to as
“forward-looking information” (“FLI”)). All statements,
other than statements of historical fact, are FLI and can be
identified by the use of statements that include, but are not
limited to, words, such as “anticipate,” “plan,” “continues,”
“estimate,” “expect,” “may,” “will,” “projects,” “predict,”
“proposes,” “potential,” “target,” “implement,” “scheduled,”
“forecast,” “intend,” “would,” “could,” “might,” “should,”
“believe” and similar terminology, or statements that certain
actions, events or results “may,” “could,” “would,” “might” or
“will” be taken, occur or be achieved. FLI in this news release
includes, but is not limited to, the anticipated use of net
proceeds of the $275 million Offering; expectation that the Tranche
2 Investment and the Offering, together with the DOE Loan will
fully fund the Thacker Pass Phase 1; the expected operations,
financial results and condition of the Company; the Company’s
future objectives and strategies to achieve those objectives,
including the future prospects of the Company; the estimated cash
flow, capitalization and adequacy thereof for the Company; the
estimated costs of the development of Thacker Pass, including
timing, progress, approach, continuity or change in plans,
construction, commissioning, milestones, anticipated production and
results thereof and expansion plans; expectations regarding
accessing funding from the ATVM Loan and the Tranche 2 Investment;
anticipated timing to resolve, and the expected outcome of, any
complaints or claims made or that could be made concerning the
permitting process in the United States for Thacker Pass; capital
expenditures and programs; estimates, and any change in estimates,
of the mineral resources and mineral reserves at Thacker Pass;
development of mineral resources and mineral reserves; the expected
benefits of the Arrangement to, and resulting treatment of,
shareholders and the Company; the anticipated effects of the
Arrangement; information concerning the tax treatment of the
Arrangement; government regulation of mining operations and
treatment under governmental and taxation regimes; the future price
of commodities, including lithium; the creation of a battery supply
chain in the United States to support the electric vehicle market;
the realization of mineral resources and mineral reserves
estimates, including whether certain mineral resources will ever be
developed into mineral reserves, and information and underlying
assumptions related thereto; the timing and amount of future
production; currency exchange and interest rates; the Company’s
ability to raise capital; expected expenditures to be made by the
Company on Thacker Pass; ability to produce high purity battery
grade lithium products; settlement of agreements related to the
operation and sale of mineral production as well as contracts in
respect of operations and inputs required in the course of
production; the timing, cost, quantity, capacity and product
quality of production at Thacker Pass; successful development of
Thacker Pass, including successful results from the Company’s
testing facility and third-party tests related thereto; capital
costs, operating costs, sustaining capital requirements, after tax
net present value and internal rate of return, payback period,
sensitivity analyses, and net cash flows of Thacker Pass; the
expected capital expenditures for the construction of Thacker Pass;
anticipated job creation and workforce hub at Thacker Pass; the
expectation that the PLA will minimize construction risk, ensure
availability of skilled labor, address the challenges associated
with Thacker Pass’ remote location and be effective in prioritizing
employment of local and regional skilled craft workers, including
members of underrepresented communities; the Company’s commitment
to sustainable development, minimizing the environmental impact at
Thacker Pass and plans for phased reclamation during the life of
mine; ability to achieve capital cost efficiencies; the Tranche 2
Investment and the potential for additional financing scenarios for
Thacker Pass; the expected timetable for completing the Tranche 2
Investment; the ability of the Company to complete the Tranche 2
Investment on the terms and timeline anticipated, or at all; the
receipt of required stock exchange and regulatory approvals and
authorizations, and the securing of sufficient available funding to
complete the development of Phase 1 of Thacker Pass as required for
the Tranche 2 Investment; the expected benefits of the Tranche 2
Investment; as well as other statements with respect to
management’s beliefs, plans, estimates and intentions, and similar
statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts.
FLI involves known and unknown risks, assumptions and other
factors that may cause actual results or performance to differ
materially. FLI reflects the Company’s current views about future
events, and while considered reasonable by the Company as of the
date of this news release, are inherently subject to significant
uncertainties and contingencies. Accordingly, there can be no
certainty that they will accurately reflect actual results.
Assumptions upon which such FLI is based include, without
limitation: a cordial business relationship between the Company and
third party strategic and contractual partners; the potential
benefit of the Arrangement being realized; the risk of tax
liabilities as a result of the Arrangement, and general business
and economic uncertainties and adverse market conditions; the risk
that the Arrangement may not be tax-free for income tax purposes
and potential significant tax liabilities that the Company may be
exposed to if the tax-deferred spinoff rules are not met; the risk
of tax indemnity obligations owed by the Company to Lithium
Argentina following the Arrangement becoming payable, including as
a result of events outside of the Company's control; uncertainties
inherent to feasibility studies and mineral resource and mineral
reserve estimates; the ability of the Company to secure sufficient
additional financing, advance and develop Thacker Pass, and to
produce battery grade lithium; the respective benefits and impacts
of Thacker Pass when production operations commence; settlement of
agreements related to the operation and sale of mineral production
as well as contracts in respect of operations and inputs required
in the course of production; the Company’s ability to operate in a
safe and effective manner, and without material adverse impact from
the effects of climate change or severe weather conditions;
uncertainties relating to receiving and maintaining mining,
exploration, environmental and other permits or approvals in
Nevada; demand for lithium, including that such demand is supported
by growth in the electric vehicle market; current technological
trends; the impact of increasing competition in the lithium
business, and the Company’s competitive position in the industry;
continuing support of local communities and the Fort McDermitt
Paiute and Shoshone Tribe for Thacker Pass; continuing constructive
engagement with these and other stakeholders, and any expected
benefits of such engagement; the stable and supportive legislative,
regulatory and community environment in the jurisdictions where the
Company operates; impacts of inflation, currency exchanges rates,
interest rates and other general economic and stock market
conditions; the impact of unknown financial contingencies,
including litigation costs, environmental compliance costs and
costs associated with the impacts of climate change, on the
Company’s operations; increased attention to environmental, social
and governance (“ESG”) and sustainability-related matters,
risks related to the Company’s public statements with respect to
such matters that may be subject to heightened scrutiny from public
and governmental authorities related to the risk of potential
“greenwashing,” (i.e., misleading information or false claims
overstating potential sustainability related benefits); risks that
the Company may face regarding potentially conflicting anti-ESG
initiatives from certain U.S. state or other governments; estimates
of and unpredictable changes to the market prices for lithium
products; development and construction costs for Thacker Pass, and
costs for any additional exploration work at the project; estimates
of mineral resources and mineral reserves, including whether
mineral resources not included in mineral reserves will be further
developed into mineral reserves; reliability of technical data;
anticipated timing and results of exploration, development and
construction activities, including the impact of ongoing supply
chain disruptions and availability of equipment and supplies on
such timing; timely responses from governmental agencies
responsible for reviewing and considering the Company’s permitting
activities at Thacker Pass; availability of technology, including
low carbon energy sources and water rights, on acceptable terms to
advance Thacker Pass; the Company’s ability to obtain additional
financing on satisfactory terms or at all, including the outcome of
the ATVM Loan application; government regulation of mining
operations and mergers and acquisitions activity, and treatment
under governmental, regulatory and taxation regimes; ability to
realize expected benefits from investments in or partnerships with
third parties; accuracy of development budgets and construction
estimates; that the Company will meet its future objectives and
priorities; that the Company will have access to adequate capital
to fund its future projects and plans; that such future projects
and plans will proceed as anticipated; the ability of the Company
to satisfy all closing conditions for the Tranche 2 Investment and
complete the Tranche 2 Investment in a timely manner; the impact of
the Tranche 2 Investment on dilution of shareholders and on the
trading price for, and market for trading in, the securities of the
Company; as well as assumptions concerning general economic and
industry growth rates, commodity prices, currency exchange and
interest rates and competitive conditions. Although the Company
believes that the assumptions and expectations reflected in such
FLI are reasonable, the Company can give no assurance that these
assumptions and expectations will prove to be correct.
Readers are cautioned that the foregoing lists of factors is not
exhaustive. There can be no assurance that FLI will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. As such,
readers are cautioned not to place undue reliance on this
information, and that this information may not be appropriate for
any other purpose, including investment purposes. The Company’s
actual results could differ materially from those anticipated in
any FLI as a result of the risk factors set out herein, and in the
Company’s other continuous disclosure documents available on SEDAR+
at www.sedarplus.ca and EDGAR at www.sec.gov. Readers are further
cautioned to review the full description of risks, uncertainties
and management’s assumptions in the aforementioned documents and
other disclosure documents available on SEDAR+ and on EDGAR.
The Company expressly disclaims any obligation to update FLI as
a result of new information, future events or otherwise, except as
and to the extent required by applicable securities laws.
Forward-looking financial information also constitutes FLI within
the context of applicable securities laws and as such, is subject
to the same risks, uncertainties and assumptions as are set out in
the cautionary note above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240512840722/en/
INVESTOR CONTACT Virginia Morgan, VP, IR and ESG
+1-778-726-4070 ir@lithiumamericas.com
Lithium Americas (NYSE:LAC)
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Lithium Americas (NYSE:LAC)
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