Lithium Americas Reports Second Quarter 2024 Results
Lithium Americas Reports Second Quarter 2024 Results
(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia--(BUSINESS WIRE)--August 14, 2024--Lithium Americas
Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) has reported its
financial and operating results for the six months ended June 30, 2024 (“Q2 2024”) and has filed
its condensed consolidated interim financial statements (“Financials”) and management’s
discussion and analysis (“MD&A”).
HIGHLIGHTS
Thacker Pass
On March 12, 2024, the Company received from the U.S. Department of Energy
(“DOE”) a conditional commitment for a $2.26 billion loan (the “DOE Loan”) under the
Advanced Technology Vehicles Manufacturing Loan Program, to fund eligible
construction costs of the processing facilities at Thacker Pass to produce an initial 40,000
tonnes per annum of battery grade lithium carbonate (“Phase 1”). The Company
continues to work closely with the DOE and expects to close the DOE Loan in the second
half of 2024 (“2H24”).
Site preparation for major earthworks has been completed, and Thacker Pass is prepared
for the commencement of major construction following issuing full notice to proceed
(“FNTP”), expected in 2H24 following closing of the DOE Loan.
The Company continues to focus on increasing the level of detailed engineering,
currently over 30% design complete, alongside advancing procurement and execution
planning. Throughout Q2 2024, procurement packages and executable purchase orders
were put in place in preparation for FNTP.
During Q2 2024, the Company advanced site preparation for the Workforce Hub
(“WFH”), a planned all-inclusive housing facility for construction workers. The WFH
will be built to align with Thacker Pass Phase 1 construction schedule.
In August 2024, the Company received a $11.8 million grant from the U.S. Department
of Defense to support an upgrade of the local power infrastructure and to help build a
transloading facility.
During the three months ended June 30, 2024, $27.7 million of construction capital costs
and other project-related costs were capitalized.
Corporate
As of June 30, 2024, the Company had approximately $375.8 million in cash and cash
equivalents.
In April 2024, the Company completed an underwritten public offering (the “Offering”)
which, together with the DOE Loan, satisfies the funding condition to closing General
Motors Holdings LLC (“GM”) second tranche investment (“Tranche 2 Investment”).
The DOE Loan and the GM Tranche 2 Investment are expected to close in the second
half of the year, and together, with the cash on hand, are expected to fund Thacker Pass
Phase 1 construction capital expenditures.
The Company published an environment, social, governance and safety (“ESG-S”)
report, themed “Advancing Sustainable Value Creation,” covering sustainability
performance and progress for the period January 1 to December 31, 2023, including
activities related to Thacker Pass and the Company’s Lithium Technical Development
Center. The ESG-S report highlights the Company’s commitment to sustainably develop
Thacker Pass to become a responsible lithium producer and create value for stakeholders.
The ESG-S report is available on the Company’s website.
“Our team is focused on closing the DOE Loan and GM investment to move Thacker Pass into
major construction by the end of the year," said Jonathan Evans, President and Chief Executive
Officer of Lithium Americas. “We have been working closely with the U.S. DOE and GM, while
concurrently continuing to de-risk execution readiness by advancing detailed engineering,
project planning and procurement packages. Earthworks and site preparations are complete, and
Thacker Pass is ready for the next phase of construction once we make the final investment
decision later this year.”
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) Six months ended June 30,
2024 2023
$ $
Expenses 11.7 10.7
Net loss/(income) 12.3 (9.2)
Loss/(Income) per share – basic 0.07 (0.06)
(in US$ million) As at June 30, 2024 As at December 31, 2023
$ $
Cash and cash equivalents 375.8 195.5
Total assets 692.2 439.5
Total long-term liabilities 8.6 7.5
During the six months ended June 30, 2024, there was a net loss compared with net income
during the six months ended June 30, 2023 due to the recognition of a loss on the fair value of
financial instruments compared with a gain in the comparable year-earlier period 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.
At June 30, 2024, total assets increased due to higher cash and cash equivalent balances
reflecting net proceeds from the completion of an underwritten public offering in April 2024.
Expenditures capitalized for Thacker Pass were offset by a reduction in cash and net settlement
of prepaids at December 31, 2023 that were capitalized as Thacker Pass construction costs in the
six months ended June 30, 2024.
This news release should be read in conjunction with the Company’s Financial Statements and
MD&A for the six months ended June 30, 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 tonnes per annum of
battery-quality lithium carbonate. The Company and its engineering, procurement and
construction management contractor, Bechtel, entered into a National Construction Agreement
(Project Labor Agreement) with North America’s Building Trades Unions 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,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “predict,”
“propose,” “potential,” “target,” “implement,” “schedule,” “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, the Offering and cash on hand,
together with the DOE Loan will fully fund Thacker Pass Phase 1 construction; expectations
regarding closing and accessing funding from the DOE Loan and the Tranche 2 Investment;
expectations regarding receipt of FNTP; expectations and timing on the commencement of major
construction; 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; cost and expected benefits of the
transloading terminal; 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; estimates, and any change in estimates, of the mineral resources and
mineral reserves at Thacker Pass; development of mineral resources and mineral reserves; 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 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 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 WFH; the expected progress of
construction of the community center and the Company’s other obligations under the community
benefits agreement; the expectation that the project labor agreement 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 expected workforce
development training program being prepared with Great Basin College; the Company’s
commitment to sustainable development, minimizing the environmental impact at Thacker Pass
and plans for phased reclamation during the life of mine including use benefits of growth media;
ability to achieve capital cost efficiencies; the Tranche 2 Investment and the potential for
additional financing scenarios for Thacker Pass; 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; the ability of the
Company to complete the DOE Loan on the terms and timeline anticipated, or at all, including,
but not limited to, need for letters of credit; 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 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 DOE
Loan; 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