Lithium Americas Reports First Quarter 2024 Results
Lithium Americas Reports First Quarter 2024 Results
(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 13, 2024--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.
Contacts
INVESTOR CONTACT
Virginia Morgan, VP, IR and ESG
+1-778-726-4070