HIGHLIGHTS
Caucharí-Olaroz
- Construction continues to advance with a revised timeline; currently the project is approximately 85% complete and commissioning is targeted to commence in H2 2022.
- 1,500 workers are on site with 100% of the workforce having received at least two doses of a COVID-19 vaccine.
- Around the end of 2021, construction activities were impacted by COVID-19 Omicron disruptions impacting supply chains and availability of the main contractor. Activities have returned to normal and the Company continues to monitor the situation closely.
- Additional resources have been added to accelerate and de-risk commissioning and ramp-up timeline.
- Total capital cost estimates have been revised to
$741 million (on a 100% basis), up 16% from$641 million , to reflect additional resources and manpower, engineering modifications and inflationary cost pressures.- As of
December 31, 2021 , 76%, or$565 million , of the$741 million budget has been spent.
- As of
- Progress on the second stage expansion of at least 20,000 tonnes per annum (“tpa”) of lithium carbonate equivalent (“LCE”) continues to advance with additions to the technical leadership team and drilling program underway.
Pastos Grandes
- In
January 2022 , the Company completed the acquisition of Millennial Lithium Corp. and the 100% owned Pastos Grandes for total consideration of approximately$390 million . - In
February 2022 , the Company hiredCarlos Galli as Senior Director,Project Development ,Latin America , to oversee the development planning for Pastos Grandes and integration and expansion of a team of over 50 workers based inSalta, Argentina .
- In
November 2021 , the Company increased its strategic investment inArena Minerals Inc. (TSX-V: AN) to approximately 17.4% for$10 million .
- In
October 2021 , Measured and Indicated (“M&I”) Resource estimates were updated to 13.7 million tonnes (“Mt”) LCE at 2,231 parts per million lithium (“ppm Li”). See the Company’s news release datedOctober 7, 2021 for full details. - The Company continues to advance the Feasibility Study with an increased targeted capacity of 40,000 tpa lithium carbonate and incorporating a second phase expansion to reach a targeted total capacity of 80,000 tpa lithium carbonate. Results of the Feasibility Study are expected in H2 2022.
- The Company is continuing to optimize engineering to complete capital and operating estimates. Capital costs are expected to substantially increase due to the incorporation of increased scale, additional processing and related infrastructure changes, and the results of engineering and testing, as well as to account for external factors such as inflationary pressures and supply chain considerations
The Lithium Technical Development Center is expected to be operational in Q2 2022 to support ongoing optimization work and to provide product samples for potential customers and partners.- In
February 2022 , theNevada Department of Environmental Protection (“NDEP”) issued the final key state-level environmental permits: Water Pollution Control Permit, Class II Air Quality Operating Permit and Exploration and Mine Reclamation Permits. - An appeal on the Record of Decision continues to advance through Federal court process with a ruling expected in Q3 2022.
- In
February 2022 , the Company announced that it submitted a draft application to theUS Department of Energy for funding to be used atThacker Pass through the Advanced Technologies Vehicle Manufacturing Loan Program. - Discussions continue with potential strategic partners and customers.
Corporate
- As at
December 31, 2021 , the Company had$511 million in cash and cash equivalents with an additional$75 million in available credit. - In
December 2021 , the Company completed a convertible senior note offering of$259 million at 1.75% due in 2027. Net proceeds were primarily used to repay the$205 million senior secured credit facility and remove security overThacker Pass , and to repay in early 2022$25 million outstanding on its subordinate loan facility. - In
January 2022 , the Company began to work withIRMA (Initiative for Responsible Mining Assurance) to pilot their new draftIRMA -Ready Standard for Responsible Mineral Exploration and Development. - In
February 2022 ,Richard Gerspacher joined as Senior Vice President Capital Projects to oversee execution of the Company’s development projects. Most recently,Mr. Gerspacher served as Vice President and Projects Director for Fluor Corporation leading the development of an advanced stage lithium chemical project inAustralia . - In
February 2022 , the Company commenced the process to explore a separation of its US andArgentina operations, through the creation of a standalone public company focused on the development ofThacker Pass .
TECHNICAL INFORMATION
The Technical Information in this news release has been reviewed and approved by
FINANCIAL RESULTS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information) | Year ended | ||||
2021 | 2020 | ||||
$ | $ | ||||
Expenses | (46.1) | (30.6) | |||
Net loss | (38.5) | (36.2) | |||
(Loss)/income per share – basic | (0.32) | (0.39) |
(in US$ million) | As at | As at | |||
$ | $ | ||||
Cash and cash equivalents | 510.6 | 148.1 | |||
Total assets | 817.3 | 326.7 | |||
Total long-term liabilities | (272.8) | (127.3) |
During the year ended
The higher net loss in 2021 compared to 2020 is primarily attributable to higher
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: 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
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, 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
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:
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