(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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814570673/en/
INVESTOR CONTACT
Virginia Morgan, VP, IR and ESG +1-778-726-4070
ir@lithiumamericas.com
Lithium Americas (NYSE:LAC)
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