Lithium Americas Reports First Quarter 2018 Financial and Operating Results
May 14 2018 - 4:50PM
Lithium Americas Corp. (TSX:LAC) (NYSE:LAC)
("Lithium Americas" or the "Company") has
announced its financial and operating results for the quarter ended
March 31, 2018.
This news release should be read in conjunction
with Lithium Americas’ unaudited condensed consolidated interim
financial statements and management's discussion and analysis
("MD&A") for the quarter ended March 31, 2018, which are
available on Lithium Americas’ website, on SEDAR and on EDGAR.
HIGHLIGHTS
Cauchari-Olaroz:
- Development activities continue as planned with the advancement
of detailed engineering, pond construction, camp construction,
plant design and supply purchases, with Stage 1 production expected
to commence in 2020.
- Engineering for the infrastructure is over 80% complete with
plant design at close to 70% complete.
- Evaporation pond construction commenced in early February and
the filling of the ponds is expected to begin in the second half of
2018.
- There are currently close to 400 people working in Argentina,
including direct employees and contractors.
- Facilities to provide an additional 400 beds to the
construction camp are already commissioned.
Lithium Nevada:
- On April 5, 2018 the Company updated the Measured and Indicated
mineral resource at its Lithium Nevada project to 6.0 million
tonnes of lithium carbonate equivalent (“LCE”) at 2,917 parts per
million lithium (“ppm Li”) and the Inferred mineral resource to 2.3
million tonnes of LCE at 2,932 ppm Li.
- The updated resource represents an approximate 80% increase in
the Measured and Indicated mineral resource from the Company’s 2016
resource estimate, and establishes Lithium Nevada as the largest
known lithium resource in the United States.
- Remain on track to release results of NI 43-101 Preliminary
Feasibility Study (“PFS”) by the end of Q2 2018.
- Continuing to evaluate potential partnership and financing
scenarios to advance the Lithium Nevada project.
RheoMinerals:
- The sales for the three months ended March 31, 2018 were US$1.1
million (Q1 2017 - US$1.2 million).
Finance:
- As at March 31, 2018, the Company had US$43.5 million in cash
and cash equivalents.
- As a result of the completion of the Ganfeng Lithium and
Bangchak investment agreements in 2017, the Company has US$205
million in an undrawn debt facility to finance its share of capital
expenditures with respect to the Minera Exar joint venture.
Corporate:
- In January 2018, the Company announced that it had received
approval for the listing of its common shares (“Common Shares”) on
the NYSE. The Common Shares opened for trading on the NYSE on
January 25, 2018.
Financial
Results:
The following selected financial information is presented in
thousands of US dollars, shares in thousands, unless otherwise
stated and except per share amounts
The following table summarizes the key items
that resulted in the decrease in net loss for the three months
ended March 31, 2018 (Q1 2018) versus the three months ended March
31, 2017 (Q1 2017), as well as certain offsetting items:
|
|
|
|
|
|
|
|
|
|
|
Financial results |
|
|
Q1 2018 |
|
|
Q1 2017 |
|
|
Change |
|
|
|
$ |
|
$ |
|
$ |
|
Organoclay sales |
|
|
1,096 |
|
|
1,167 |
|
|
(71 |
) |
Cost of sales |
|
|
(1,677 |
) |
|
(1,610 |
) |
|
(67 |
) |
Exploration
expenditures |
|
|
(1,400 |
) |
|
(563 |
) |
|
(837 |
) |
Organoclay research and
development |
|
|
(133 |
) |
|
(117 |
) |
|
(16 |
) |
General and
administrative expenses |
|
|
(2,017 |
) |
|
(1,361 |
) |
|
(656 |
) |
Share of loss in Joint
Venture |
|
|
(164 |
) |
|
(1,746 |
) |
|
1,582 |
|
Stock-based
compensation |
|
|
(1,945 |
) |
|
(234 |
) |
|
(1,711 |
) |
Foreign exchange
gain/(loss) |
|
|
1,369 |
|
|
(138 |
) |
|
1,507 |
|
Other
income/(expense) |
|
|
304 |
|
|
(358 |
) |
|
662 |
|
Net Loss |
|
|
(4,567 |
) |
|
(4,960 |
) |
|
393 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the three months ended March 31,
2018 was $4,567 compared to $4,960 for the three months ended March
31, 2017. Basic and diluted loss per share was $0.05 in Q1 2018
versus $0.08 in Q1 2017.
Exploration expenditures were $1,400 in Q1 2018
versus $563 in Q1 2017. The increase is due to costs incurred for
the advancement of Lithium Nevada project.
The Company’s share of the Minera Exar joint
venture losses decreased in Q1 2018 to $164 compared to $1,746 in
Q1 2017 as the majority of costs incurred in Q1 2018 were
capitalized given that the project entered the development phase in
July 2017.
Stock-based compensation increased in Q1 2018 to
$1,945 compared to $234 in Q1 2017 due to vesting of the 2017 stock
option grants and restricted share awards to the Company’s
employees, officers and directors. General and Administrative
expenses increased in Q1 2018 to $2,017 versus $1,361 in Q1 2017
due to the costs of listing of the Company’s shares on the NYSE and
filing of the base shelf prospectus on February 7, 2018.
The Company recognized in Q1 2018 a foreign
exchange gain of $1,369 (Q1 2017 – loss of $138) which was a result
of the strengthening of the US dollar against the Canadian dollar
and a higher US dollar denominated cash balance in the Q1 2018
period.
Qualified Person:
The scientific and technical information in this
news release has been reviewed and approved by Randal Burns, a
Qualified Person for purposes of NI 43-101 by virtue of his
experience, education and professional association. Mr. Burns
is a Senior Project Geologist at Lithium Nevada Corp., a
wholly-owned subsidiary of the Company. Information on the
Company’s data verification and QA / QC procedures is contained in
Lithium Americas’ most recently filed press-release dated April 5,
2018 and the most recently filed annual information form, and the
current technical reports for the Lithium Nevada project, available
at www.sedar.com.
About Lithium
Americas:
Lithium Americas, together with SQM, is
developing the Cauchari-Olaroz lithium project, located in Jujuy,
Argentina, through its 50% interest in Minera Exar. In addition,
Lithium Americas owns 100% of the Lithium Nevada project (formerly
Kings Valley project), and RheoMinerals Inc., a supplier of
rheology modifiers for oil-based drilling fluids, coatings, and
specialty chemicals. The Company trades on both the Toronto Stock
Exchange and on the New York Stock Exchange, under the ticker
symbol “LAC”.
For further information contact:Lithium Americas
Corp.Investor RelationsSuite 1150 – 355 Burrard StreetVancouver,
BC, V6C 2G8Telephone: 778-656-5820Email:
ir@lithiumamericas.comWebsite: www.lithiumamericas.com
Forward-looking
statements:
This news release contains “forward-looking
information” and “forward-looking statements” (which we refer to
collectively as forward-looking information) under the provisions
of applicable securities legislation. Such forward-looking
information is subject to various risks and uncertainties.
Forward-looking information in this news release includes, but is
not limited to, statements with respect to development activities,
the achievement of technical and development milestones, and
commencement of production at Cauchari-Olaroz, and the timing of
completion of a PFS and the potential for partnership and financing
scenarios for Lithium Nevada. Forward looking information is
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking information, including, but
not limited to, risks and uncertainties related to whether there
will ever be production at the Company’s mineral properties,
geological, technical, drilling or processing problems,
environmental liabilities and risks inherent in mineral extraction
operations, lack of availability of additional financing, and
obtaining regulatory approvals in a timely manner, or at all. There
can be no assurance that such statements will prove to be accurate,
as actual results and future events could differ materially from
those anticipated in such statements. Forward-looking statements
are made as of the date hereof and the Company does not intend, and
expressly disclaims any obligation to, update or revise the
forward-looking information contained in this news release, except
as required by law. Accordingly, readers are cautioned not to place
undue reliance on forward-looking information.
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