Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium
Americas” or the “Company”) has reported unaudited
financial and operating results for the first quarter ended March
31, 2021 (“Q1 2021”).
HIGHLIGHTS
Caucharí-Olaroz Lithium Project
(“Caucharí-Olaroz”):
- Construction activities at
Caucharí-Olaroz continue to advance to achieve first production in
mid-2022, with strict COVID-19 health and safety protocols. No
positive cases of COVID-19 have been reported at site in over seven
months.
- All major equipment and the
majority of bulk materials have been delivered to site.
- Construction of the lime plant has
been completed with pre-commissioning work ongoing.
- Significant progress continues to
be made on the KCl plant and site infrastructure.
- The solar evaporation ponds are
well advanced with sufficient brine inventory to support production
ramp up beginning in mid-2022.
- Following a review of the budget
and COVID-19 related costs, capital expenditures have been revised
to $641 million (on a 100% basis), up 13% from the 2019 estimate of
$565 million. The revised budget primarily reflects the impact of
COVID-19, including additional camp capacity, mandatory quarantine
period at site and enhanced health and safety protocols, as well as
additional contingency to complete the current construction
schedule.
- As of March 31, 2021, capital
expenditures committed were $521 million, 81% of the updated
capital expenditure budget, of which $426 million, 66% of the
budget, has been spent.
- The Company’s 49% share of the
remaining capital expenditure is $105 million and is expected to be
fully funded from $171 million in undrawn credit.
- In early April 2021, the Jujuy
Energia y Mineria Sociedad del Estado (“JEMSE”), a company owned by
the Government of Jujuy province, completed the exercise of its
2012 participation right to 8.5% of the Argentine entity, Minera
Exar S.A. The provincial owned company is entitled to 8.5% of the
future dividends from Minera Exar S.A., less deductions to reflect
Ganfeng and Lithium Americas’ equity and debt investments. Lithium
Americas and Ganfeng Lithium Co. Ltd. (“Ganfeng”) retain their
proportionate 49%/51% rights to the production of
Caucharí-Olaroz.
Thacker Pass Lithium Project (“Thacker
Pass”):
- On January 15, 2021, the US Bureau
of Land Management issued the Record of Decision (“ROD”) following
completion of the National Environmental Policy Act process. The
ROD is the final federal approval required to start construction
and operation.
- All remaining state permits and
water right transfers required to commence construction are
forecasted to be issued later this year.
- The process testing facility in
Reno, Nevada, continues to operate with enhanced COVID-19 protocols
in place and has produced over 20,000 kg of lithium sulphate
solution.
- Results of a Feasibility Study
targeting an initial 30,000–35,000 tonnes per annum (“tpa”) lithium
carbonate equivalent of capacity (“Phase 1”) is expected by year
end. In addition, the Company is advancing engineering to consider
a 20,000 tpa lithium hydroxide chemical conversion plant to have
flexibility to meet potential customer and partner needs.
- The Company continues to expand the
engineering and technical team at Thacker Pass. There are now over
30 professionals focused on advancing the project towards the start
of construction, expected to begin in early 2022.
- The Company continues to evaluate
partnership and financing opportunities for Thacker Pass to advance
and de-risk the project.
Corporate:
- As at March 31, 2021, the Company
had $514 million in cash and cash equivalents.
- On January 22, 2021, the Company
closed an underwritten public offering of shares of its common
stock and issued 18.2 million common shares at a price of $22.00
per Common Share for gross proceeds to the Company of $400 million
(approximately $377 million net proceeds).
- As at March 31, 2021, the Company
had $171 million in undrawn credit, with $109 million drawn from
the $205 million senior credit facility and $25 million from its
$100 million unsecured, limited recourse, subordinated loan
facility.
FINANCIAL RESULTS
Selected consolidated
financial information is presented as follows:
(in US$ million |
Quarter ended March 31,2021 |
|
Quarter ended March 31,2020 |
except per share information) |
$ |
|
$ |
Expenses |
(8.8) |
|
(10.3) |
Net loss |
(9.9) |
|
(14.0) |
Loss per share – basic |
(0.09) |
|
(0.15) |
(in US$ million) |
As at March 31,2021 |
|
As at December 31,2020 |
|
$ |
|
$ |
Cash and cash equivalents |
514.2 |
|
148.1 |
Total assets |
707.9 |
|
326.7 |
Total long-term liabilities |
(140.8) |
|
(127.3) |
During the quarter
ended March 31, 2021, total assets and cash increased primarily due
to the $377.4 million net proceeds raised from the underwritten
public offering of common stock, partially offset by expenditures
in the period. Total long-term liabilities increased primarily as a
result of a $13.4 million drawdown on the Company’s senior credit
facility.
Net loss for the
quarter ended March 31, 2021 was $9.9 million compared to net loss
of $14.0 million for the comparative period. The lower net loss in
Q1 2021 is primarily attributable to a foreign exchange gain and
timing of Thacker Pass and other expenditures.
Click here to view the
Company’s full first quarter results for 2021.
About Lithium Americas:
Lithium Americas is a development-stage company
with projects in Jujuy, Argentina and Nevada, United States.
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:
Investor RelationsTelephone: 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. All statements, other than
statements of historical fact, are forward-looking information.
Examples of forward-looking information in this news release
include, among other things, statements related to: successful
development of the Caucharí-Olaroz project and the Thacker Pass
project, including timing, progress, construction, milestones,
anticipated production and results thereof; expectations and
anticipated impact of the COVID-19; capital expenditures and
programs; government regulation of mining operations and treatment
under governmental and taxation regimes; the timing, amount and
type of future production; expected outcome and timing of
environmental surveys and permit applications and other
environmental matters; expected expenditures to be made by the
Company on its properties; the timing, cost, quantity, capacity and
product quality of production of the Caucharí-Olaroz project, which
is held and operated through an entity in Argentina co-owned by the
Company, Ganfeng and JEMSE; successful operation of the
Caucharí-Olaroz project under the co-ownership structure; results
of the Company’s engineering, design and permitting program at the
Thacker Pass project, including that the Company meeting deadlines
and receiving permits as anticipated; timing, results and
completion of a feasibility study and to make a construction
decision for the Thacker Pass project; the Company’s share of the
expected capital expenditures for the construction of the
Caucharí-Olaroz project and for permitting, and for Thacker Pass
project feasibility study activities at the Thacker Pass project
and the potential for partnership and financing scenarios for the
Thacker Pass project.
Forward-looking information is based upon a
number of factors and assumptions that, if untrue, could cause the
actual results, performances or achievements of the Company to be
materially different from future results, performances or
achievements expressed or implied by such information. Such
information reflects the Company’s current views with respect to
future events and is necessarily based upon a number of assumptions
that, while considered reasonable by the Company today, are
inherently subject to significant uncertainties and contingencies.
These assumptions include, among others, the following: current
technological trends; a cordial business relationship between the
Company and Ganfeng for the Caucharí-Olaroz project; ability of the
Company to fund, advance and develop the Caucharí-Olaroz project
and the Thacker Pass project, and raise additional capital as
needed, and the respective impacts of the projects when production
commences; the Company’s ability to operate in a safe and effective
manner; uncertainties relating to receiving and maintaining mining,
exploration, environmental and other permits or approvals in Nevada
and Argentina, and resolving any complaints or litigation
concerning such environmental permitting processes; realizing on
the expected benefits from previous transactions with existing or
new partners, or for debt financing; demand for lithium, including
that such demand is supported by growth in the electric vehicle
market; the Company’s ability to produce high purity battery grade
lithium products; the impact of increasing competition in the
lithium business, and LAC’s competitive position in the industry;
currency exchange and interest rates; general economic conditions;
the stable and supportive legislative, regulatory and community
environment in the jurisdictions where the Company operates;
stability and inflation of the Argentinian peso, including any
foreign exchange or capital controls which may be enacted in
respect thereof, and the effect of current or any additional
regulations on the Company’s operations; the impact of unknown
financial contingencies, including litigation costs, on the
Company’s operations; gains or losses, in each case, if any, from
short-term investments in Argentine bonds and equities; estimates
of and unpredictable changes to the market prices for lithium
products; exploration, development and construction costs for the
Caucharí-Olaroz project and the Thacker Pass project; the timing,
cost, quantity, capacity and product quality of production at the
Thacker Pass project; successful results from the Company’s testing
facility and third-party tests related thereto for the Thacker Pass
project; capital costs, operating costs, and sustaining capital
requirements of the Caucharí-Olaroz project and the Thacker Pass
project; estimates of mineral resources and mineral reserves,
including whether mineral resources will ever be developed into
mineral reserves; reliability of technical data; anticipated timing
and results of exploration, development and construction
activities, including the impact of COVID-19 on such timing; timely
responses from governmental agencies responsible for reviewing and
considering the Company’s permitting activities at the Thacker Pass
project; the Company’s ability to obtain additional financing,
including pursuant to an additional debt funding commitment, on
satisfactory terms or at all; the ability to develop and achieve
production at any of the Company’s mineral exploration and
development properties; the impact of COVID-19 on the Company’s
business; that pending patent applications are approved; accuracy
of development budget and construction estimates; and preparation
of a development plan and feasibility study for lithium production
at the Thacker Pass project.
Forward-looking information also involves known
and unknown risks that may cause actual results to differ
materially. These risks include, among others, inherent risks in
the development of capital intensive mineral projects (including as
co-owners), variations in mineral resources and mineral reserves,
global demand for lithium, recovery rates and lithium pricing,
risks associated with successfully securing adequate financing,
changes in project parameters and funding thereof, risks related to
growth of lithium markets and pricing for products thereof, changes
in legislation, governmental or community policy, political risk
associated with foreign operations, permitting risk, including
receipt of new permits and maintenance of existing permits, title
and access risk, cost overruns, unpredictable weather and
maintenance of natural resources, unanticipated delays,
intellectual property risks, currency and interest rate
fluctuations, operational risks, health and safety risks, and
general market and industry conditions. Additional risks,
assumptions and other factors are set out in the Company’s most
recent annual management discussion analysis and annual information
form, copies of which are available under the Company’s profile on
SEDAR at www.sedar.com and on the SEC website at www.sec.gov.
Although the Company has attempted to identify
important risks and assumptions, given the inherent uncertainties
in such forward-looking information, there may be other factors
that cause results to differ materially. Forward-looking
information is 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 such forward-looking
information.
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