HIGHLIGHTS
Caucharí-Olaroz
- Construction is substantially complete and on track to deliver first production by end of H1 2023.
- Caucharí-Olaroz expects to ramp up in H2 2023 and reach full production rate of 40,000 tonnes per annum (“tpa”) of lithium carbonate by Q1 2024.
- Commissioning of the solvent exchange and purification plants are underway with additional purification necessary to achieve battery-quality expected to be completed in H2 2023 following the start of pre-commercial production. Ponds and liming plant are fully operational.
- As of
March 30, 2023 , the Company expects its remaining funding requirement to be less than$50 million for capital costs, valued added taxes and working capital to reach production and positive cash flow.- The Company’s portion of funding in Q1 2023 was
$38 million .
- The Company’s portion of funding in Q1 2023 was
- Capital cost estimates and funding requirements have been updated to reflect current production schedule, increased operating costs and inflationary environment in
Argentina .- Total capital costs, on a 100% basis, have been updated to
$979 million at the officialArgentina exchange rate from$852 million previously, and compared to an estimated$645 million at the realized market-based exchange rate. - Substantially all of the increase in capital costs since the 2020 feasibility study has been offset by realization of higher market-based exchange rate for Argentine pesos.
- Total capital costs, on a 100% basis, have been updated to
- Development planning for Stage 2 expansion of at least 20,000 tpa of lithium carbonate continues to progress to align with completion of Stage 1.
- The Company continues to advance the Pastos Grandes’
$30 million development plan, targeting completion of the plan and a construction decision in Q4 2023. - On
December 20, 2022 , the Company entered into a definitive arrangement agreement to acquire Arena Minerals Inc. (“Arena Minerals”) for$227 million in shares (on a 100% basis) with a view to consolidating the highly prospective Pastos Grandes basin. The transaction is expected to close inApril 2023 .
- On
March 2, 2023 , the Company announced the start of construction activities atThacker Pass following receipt of notice to proceed from theBureau of Land Management (“BLM”).- Major earthworks are expected to commence in H2 2023 and support the target to commence production in the second half of 2026.
- On
February 22, 2023 , the Company announced that it received a Letter of Substantial Completion from theU.S. Department of Energy (“DOE ”)Loans Program Office for its application for the DOE’s Advanced Technology Vehicles Manufacturing Loan Program (“ATVM Loan Program”).- The Company expects the DOE ATVM Loan Program process to be completed in 2023 and if approved, to fund up to 75% of the total capital costs for construction for Phase 1.
- The Company has approved a construction budget of
$125 million to Q3 2023 with increased spending expected following completion of the DOE ATVM Loan Program process.
- On
February 6, 2023 , theUS District Court , District ofNevada (“Federal Court”) ruled favorably for the Company in the appeal filed against the BLM by declining to vacate the Record of Decision (“ROD”).- The Federal Court ordered the BLM to consider one issue under the mining law relating to the area designated for waste storage and tailings which is not expected to impact the overall construction timeline.
- On
January 31, 2023 , the Company released an independent National Instrument 43-101 feasibility study (the “Thacker Pass Feasibility Study”) and continues to advance theThacker Pass construction plan targeting 80,000 tpa of battery-quality lithium carbonate production capacity in two phases (“Phase 1” and “Phase 2”) of 40,000 tpa, respectively. - On
January 31, 2023 , mineral reserves and mineral resource estimates were updated with a measured and indicated (“M&I”) mineral resource estimate of 16.1 million tonnes (“Mt”) lithium carbonate equivalent (“LCE”) at an average grade of 2,070 parts per million lithium (“ppm Li”), and proven and probable mineral reserves of 3.7 Mt LCE at an average grade of 3,160 ppm Li. - In Q4 2022,
Bechtel Corporation was awarded the engineering, procurement and construction management (“EPCM”) contract for Thacker Pass Phase 1,Aquatech International LLC was awarded the contract for the magnesium sulfate and lithium carbonate chemical plants, andEXP Global Inc. received the contract for the sulfuric acid plant.
Corporate
- As at
December 31, 2022 , the Company had$352 million in cash and cash equivalents and short-term bank deposits, with an additional$75 million in available credit.- As of
March 30, 2023 , following the receipt of$320 million from a first tranche investment byGeneral Motors (NYSE:GM ) (“GM ”), the Company has approximately$600 million in cash and cash equivalents and short-term bank deposits.
- As of
- On
January 30, 2023 ,Lithium Americas entered into a purchase agreement withGM wherebyGM agreed to make a$650 million equity investment in the Company and receive exclusive access to Phase 1 production atThacker Pass through a binding supply agreement.- On
February 16, 2023 , the initial tranche of$320 million closed with GM’s purchase of 15 million Lithium Americas’ common shares at$21.34 per share.GM is nowLithium Americas largest shareholder and offtake partner. - The second tranche of
$330 million is contemplated to be invested into the Company’sU.S. business following the proposed separation of itsU.S. and Argentine businesses.
- On
- On
November 3, 2022 , the Company announced that it intended to advance a reorganization that will result in the separation of itsU.S. and Argentine business units into two independent public companies (the “Separation”). The Company continues to advance the execution plan for the Separation, targeting completion in H2 2023.
TECHNICAL INFORMATION
The Technical Information in this news release has been reviewed and approved by
FINANCIAL RESULTS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information) | Year ended | ||||
2022 | 2021 | ||||
$ | $ | ||||
Expenses | (163.4 | ) | (46.1 | ) | |
Net loss | (93.6 | ) | (38.5 | ) | |
Loss per share – basic | (0.70 | ) | (0.32 | ) |
(in US$ million) | As at | As at | |||
$ | $ | ||||
Cash, cash equivalents and short-term bank deposits | 352.1 | 510.6 | |||
Total assets | 1,016.5 | 817.3 | |||
Total long-term liabilities | (212.9 | ) | (272.8 | ) | |
During the year ended
In 2022, total assets increased primarily due to the acquisition of Millennial Lithium Corp. Total long-term liabilities decreased due to a decrease in the fair value of the convertible senior notes derivative liability, offset by accrued interest on convertible senior notes, and the repayment of the subordinate loan facility in early 2022.
This news release should be read in conjunction with Lithium Americas’ consolidated financial statements and management's discussion and analysis for the year ended
ABOUT
For further information contact:
Investor Relations
Telephone: 778-656-5820
Email: ir@lithiumamericas.com
Website: 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
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: the Company’s ability to fund, advance and develop its projects, including results therefrom and timing thereof; capital costs, operating costs, and sustaining capital requirements of the Caucharí-Olaroz project and the
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 loan application with the
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.
Source:
2023 GlobeNewswire, Inc., source