(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 nine months ended September 30, 2024
(“Q3 2024”) and has filed its condensed consolidated interim
financial statements (“Financials”) and management’s
discussion and analysis (“MD&A”).
Jonathan Evans, President and Chief Executive Officer of Lithium
Americas said, “This past year has been pivotal in moving Thacker
Pass forward toward production, including entering into a new joint
venture agreement with GM and closing of the DOE Loan. We are
working to FID the project by the end of the year to move Thacker
Pass into major construction and start executing on the
well-detailed plan the team has been focused on for the past year.
We are excited to start creating new jobs and bringing economic
activity to northern Nevada. There has been a lot of heavy lifting
done by our team and we have received a lot of support from our
local community and business partners to get Thacker Pass to this
advanced stage. We look forward to moving Thacker Pass forward to
support a North American lithium supply chain.”
HIGHLIGHTS
Thacker Pass
- On October 28, 2024, the Company and the U.S. Department of
Energy’s Loan Programs Office closed a $2.26 billion loan under the
Advanced Technology Vehicles Manufacturing Loan Program for
financing the construction of the processing facilities at Thacker
Pass, to produce an initial 40,000 tonnes per annum of battery
grade lithium carbonate.
- The Company continues to focus on de-risking project execution
by advancing project planning, detailed engineering (currently at
approximately 40% design complete) and procurement packages for the
top seven pieces of long-lead equipment have been awarded.
Contracts for key construction materials have been awarded and
field purchases of goods and services have commenced.
- Major earth works for the all-inclusive housing facility for
construction workers (the Workforce Hub) have been completed. The
current focus is on finalizing engineering and permitting for
utilities and preparing to award contracts for the detailed
earthworks, foundation installation and erection of the housing
units.
- During the three months ended September 30, 2024, $34.4 million
of construction capital costs and other project-related costs were
capitalized.
Corporate
- As of September 30, 2024, the Company had approximately $341.2
million in cash and cash equivalents.
- On August 30, 2024, the Company and General Motors Holdings LLC
(“GM”) agreed to extend the outside date for the second
tranche subscription agreement until the end of the year to provide
time for the parties to explore alternative structures for GM’s
additional investment, of at least $330 million, in a mutually
beneficial manner.
- On October 15, 2024, the Company and GM entered into a new
investment agreement (“Investment Agreement”) to establish a
joint venture (“JV”) for the purpose of funding, developing,
constructing and operating Thacker Pass (“JV Transaction”).
The JV Transaction will deliver $625 million of cash and letters of
credit from GM to Thacker Pass. Under the terms of the Investment
Agreement, GM will acquire a 38% asset-level ownership stake in
Thacker Pass. The Company and GM terminated the Tranche 2
subscription agreement concurrent with the execution of the JV
Investment Agreement.
- Pablo Mercado, Executive Vice President and Chief Financial
Officer (“CFO”) is leaving the Company on November 22, 2024,
for another career opportunity outside the sector. April Hashimoto,
Senior Vice President, Finance and Administration, will assume the
additional role of Interim CFO.
Mr. Evans added, “On behalf of the Company’s Board of Directors,
we are thankful for everything the team has accomplished during
Pablo’s tenure as CFO, including the separation transaction that
resulted in Lithium Americas becoming an independent pure play
North American company, the recent signing of the GM JV Investment
Agreement and the closing of the DOE Loan. We wish Pablo the best
in his future endeavors and welcome April to her expanded
role.”
TECHNICAL INFORMATION
The scientific and technical information in this news release
has been reviewed and approved by Rene LeBlanc, PhD, SME, Vice
President, Growth and Product Strategy of the Company, and a
“qualified person” as defined under National Instrument 43-101 and
Subpart 1300 of Regulation S-K under the United States Securities
Act of 1933.
FINANCIALS
Selected consolidated financial information is presented as
follows:
(in US$ million except per share
information)
Nine months ended September
30,
2024
2023
$
$
Expenses
17.4
13.9
Net loss/(income)
20.3
(9.0
)
Loss/(Income) per share - basic
0.10
(0.06
)
(in US$ millions)
As at September 30, 2024
As at December 31, 2023
$
$
Cash and cash equivalents
341.2
195.5
Total assets
693.0
439.5
Total long-term liabilities
9.1
7.5
During the nine months ended September 30, 2024, there was
higher net loss than during the nine months ended September 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, partially offset by
increased interest income on higher cash balances.
At September 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 nine months ended September 30, 2024.
This news release should be read in conjunction with the
Company’s Financial Statements and MD&A for the nine months
ended September 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
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: statements relating to the JV
Transaction with GM and the Department of Energy (“DOE”)
Loan from the DOE, including statements regarding completion of the
JV Transaction and satisfaction of draw-down conditions on the DOE
Loan; the expectation that the Company and GM will enter into an
additional offtake agreement upon closing the JV Transaction; the
expected timetable for completing the JV Transaction and the DOE
Loan; anticipated timing for a final investment decision and
issuance of full notice to proceed in respect of Thacker Pass;
expectation about the extent that the JV Transaction, DOE Loan and
cash on hand have de-risked funding for the development and
construction of Thacker Pass and the ability of the Company to
complete all supplementary financing in order to draw-down on the
DOE Loan and make a final investment decision; expectations and
timing on the commencement of major construction; expectations and
timing on the commencement of production; project de-risking
initiatives and extent to which work to date has de-risked project
execution; 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; 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;
anticipated job creation and the completion of the Workforce Hub;
the expectation that the National Construction Agreement (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; 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: the completion of the JV Transaction and DOE Loan prior
to the end of 2024, or at all, and the absence of material adverse
events affecting the Company during this time; the ability of the
Company to satisfy all closing conditions for the JV Transaction
and DOE Loan in a timely manner; the ability of the Company to
enter into an additional offtake agreement with GM; 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; unforeseen technological and
engineering problems; political factors, including the impact of
the 2024 U.S. presidential election on, among other things, the
extractive resource industry, the green energy transition and the
electric vehicle market; 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; 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; 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/20241107537025/en/
INVESTOR CONTACT Virginia Morgan, VP, IR and ESG
+1-778-726-4070 ir@lithiumamericas.com
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