Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium
Americas” or the “Company”) has reported financial and
operating results for the first quarter ended March 31, 2022.
HIGHLIGHTS
Argentina
Caucharí-Olaroz
- Construction is
advancing with mechanical completion and commencement of
commissioning targeted for the second half of 2022.
- Additional
resources continue to be added to accelerate and de-risk
commissioning and ramp-up.
- 1,650 workers
are on site with activities carried out as normal.
- 100% of the
workforce have received at least two doses of a COVID-19
vaccine.
- In early April
2022, the site achieved a milestone of 5,000,000 total person hours
without a lost time injury.
- As of March 31,
2021, 82%, or $605 million, of the $741 million capital budget has
been spent.
- Progress on the
second stage expansion of 20,000 tonnes per annum (“tpa”) of
lithium carbonate equivalent (“LCE”) continues to advance with
additions to the technical leadership team and a drilling program
underway.
Pastos Grandes
- On January 25,
2022, the Company completed the acquisition of Millennial and the
100% owned Pastos Grandes project for total consideration of
approximately $360 million.
United States
Thacker Pass
- On April 14,
2022, the Company submitted a formal application to the US
Department of Energy for funding to be used at Thacker Pass through
the Advanced Technology Vehicles Manufacturing Loan Program.
- The Company
continues to advance a feasibility study for Thacker Pass with
targeted capacity of 40,000 tpa LCE and incorporating a second
phase expansion to reach a targeted total capacity of 80,000 tpa
LCE. Results of the feasibility study are expected in the second
half of 2022.
- Construction of
the Lithium Technical Development Center (LiTDC) in Reno is
substantially complete and commissioning has commenced. LiTDC
includes integrated testing process equipment that will replicate
the Thacker Pass flowsheet from raw ore to final product. It will
support ongoing optimization work, provide product samples for
potential customers and partners and enable process test work on
new target deposits.
- In February
2022, the Nevada Department of Environmental Protection issued the
final key state-level environmental permits: Water Pollution
Control Permit, Class II Air Quality Operating Permit and Mine and
Exploration Reclamation Permits.
- An appeal on the
Record of Decision continues to advance through a US Federal Court,
with a ruling expected in Q3 2022.
Corporate
- As at March 31,
2022, the Company had $492 million in cash and cash equivalents
with an additional $75 million in available credit.
- On April 28,
2022, the Company entered into an agreement to acquire shares of
Green Technology Metals Limited (ASX: GT1), a North American
focused lithium exploration and development company with hard rock
spodumene assets in north-west Ontario, Canada, in a private
placement for total consideration of $10 million, or approximately
5% following closing of the share placement.
- In February
2022, the Company commenced the process to explore a separation of
its US operations, through the creation of a standalone public
company focused on the development of Thacker Pass.
TECHNICAL INFORMATION
The Technical Information in this news release
has been reviewed and approved by Rene LeBlanc, PhD, SME, Chief
Technical Officer of Lithium Americas, and a Qualified Person as
defined by National Instrument 43-101.
FINANCIAL RESULTS
Selected consolidated financial information is
presented as follows:
(in US$ million except per share information) |
Quarter ended March 31, |
|
2022 |
|
2021 |
|
$ |
|
$ |
Expenses |
(16.0) |
|
(8.8) |
Net loss |
(46.1) |
|
(10.0) |
Loss per share – basic |
(0.35) |
|
(0.09) |
(in US$ million) |
As at March 31, 2022 |
|
As at December 31, 2021 |
|
$ |
|
$ |
Cash and cash equivalents |
492.3 |
|
510.6 |
Total assets |
1,136.2 |
|
817.3 |
Total long-term liabilities |
(298.7) |
|
(272.8) |
In Q1 2022, total assets increased primarily due
to the acquisition of Millennial. Total long-term liabilities
increased due to $50.3 million increase in fair value of
convertible senior notes derivative liability, partially offset by
repayment of $24.7 million limited recourse loan facility balance
and accumulated interest.
The higher net loss in 2022 compared to 2021 is
primarily attributable to $50.3 million loss on change in fair
value of convertible notes derivative driven by an increase in
market value of the Company’s shares partially offset by non-cash
gain on modification of the Company’s financial instruments.
This news release
should be read in conjunction with Lithium Americas’ condensed
consolidated interim financial statements and management's
discussion and analysis for the three months ended March 31, 2022,
which are available on the Company’s website and SEDAR. All amounts
are in U.S. dollars unless otherwise indicated.
ABOUT LITHIUM AMERICAS
Lithium Americas is focused on advancing lithium
projects in Argentina and the United States to production. In
Argentina, Caucharí-Olaroz is advancing towards first production
and Pastos Grandes represents regional growth. In the United
States, Thacker Pass has received its Record of Decision and is
advancing towards construction. 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,
expansion plans, scale, anticipated production, results thereof and
expansion plans; expectations and anticipated impact of COVID-19 on
the Company and its projects; timing for commissioning, and plans
to accelerate the commissioning and timeline for the
Caucharí-Olaroz project; estimates of capital and operating
expenditures and substantial changes thereto for any project,
including factors expected to contribute to such changes; the
Company’s ability to fund its development programs through debt or
equity financing, including through government loan programs;
timing, capacity, expansion plans, completion of a feasibility
study and sufficiency of water rights for the Thacker Pass project;
Company expectations as to timing for technical development center
operations for Thacker Pass, the outcome of such operations and
production of samples; government regulation of mining operations
and treatment under governmental and taxation regimes; expected
timing and outcome of litigation or regulatory processes concerning
the Thacker Pass project; the estimated amount and grade of mineral
resources for the Thacker Pass project; expected outcome and timing
of environmental surveys and analysis, permit applications and
other environmental matters; expected environmental impacts of the
Company’s projects; expected expenditures to be made by the Company
on its properties; the timing, cost, quantity, capacity, product
quality of production and sufficiency of brine inventory of the
Caucharí-Olaroz project, which is held and operated through an
entity in Argentina co-owned by the Company, Ganfeng Lithium Co.
Ltd. (“Ganfeng”) and Jujuy Energia y Mineria Sociedad del Estado
(JEMSE); successful operation of the Caucharí-Olaroz project under
the co-ownership structure, and expectations concerning proposed
expansion plans for the project; results of the Company’s
engineering, design and permitting program at the Thacker Pass
project, including the Company meeting deadlines and receiving and
maintaining permits as anticipated; the Company’s share of the
expected capital expenditures for the construction of the
Caucharí-Olaroz project; expected benefits of acquisitions and
investments in third parties made by the Company; the potential for
partnership and financing scenarios for the Thacker Pass project;
and the proposed separation of the Company’s business, the
completion thereof and its structure.
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; 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;
stable and supportive legislative, regulatory and community
environments 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 costs of litigation and
regulatory processes, 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, and any
expansion scenario; timing for commissioning and operation of the
Company’s testing facility in Reno, and successful results from the
testing facility and third-party testing for the Thacker Pass
Project; capital costs, operating costs, and sustaining capital
requirements of the Caucharí-Olaroz project and the Thacker Pass
project; technological advancements and changes; 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 to fund the development of
its projects, including the outcome of the Company’s DOE loan
application; 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 operations, timelines and
budgets; that pending patent applications are approved; the
Company’s anticipated ownership interest in holdings of shares,
warrants and other securities issued by third parties; accuracy of
development budget and construction estimates; preparation of a
development plan and feasibility study for lithium production at
the Thacker Pass project; successful integration of acquired
businesses and projects; expected benefits from investments made in
third parties; changes to the Company’s current and future business
plans and the strategic alternatives available to the Company; and
general economic and stock market conditions.
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,
changes in budget estimation, global demand for lithium, recovery
rates and lithium pricing, risks associated with successfully
securing adequate financing, including the outcome of the Company’s
DOE loan application, 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, changes in public perception concerning mining projects
generally and opposition thereto, political risk associated with
foreign operations, permitting risk, including receipt of new
permits and maintenance of existing permits, outcomes of litigation
and regulatory processes concerning the Company’s projects, 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,
cybersecurity risks, economic conditions, 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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