HIGHLIGHTS
Caucharí-Olaroz
- In
June 2023 , Caucharí-Olaroz achieved first lithium production as the project advances commissioning and ramp up to Stage 1 capacity of 40,000 tonnes per annum (“tpa”) of battery-quality lithium carbonate (”Li2CO3”), which is scheduled to be completed in mid-2024. - Since startup, production quality has exceeded expectations with critical equipment required to achieve battery-quality lithium carbonate in the process of testing and commissioning.
- Caucharí-Olaroz is expected to produce approximately 5,000 tonnes of lithium carbonate in 2023.
- First lithium product from Caucharí-Olaroz has left the site and is being prepared for shipment at the port.
- As of
June 30, 2023 ,$895 million of the$979 million total expected capex has been spent (on a 100% basis). As ofJune 30, 2023 , the Company expects its remaining funding requirement to be less than$25 million for capital costs, value added taxes and working capital to reach positive cash flow. - Preparation for Caucharí-Olaroz Stage 2 expansion targeting additional production capacity of at least 20,000 tpa is underway.
- On
June 26, 2023 , the Company announced the SEDAR filing of a National Instrument 43-101 (“NI 43-101”) Technical Report and resource update for thePastos Grandes Project titled, “NI 43-101 Technical Report, Lithium Resources Update,Pastos Grandes Project ,Salta Province , Argentina,” with an effective date ofApril 30, 2023 . - The Company continues to advance Pastos Grandes’
$30 million development plan, including engineering and evaluation work, which is expected to be completed by the end of the year. Simultaneously, the Company is working to complete a project review and an updated feasibility study.- A geophysics program to map the basin and brine geological units has been completed and drilling has commenced. This will allow the Company to deepen its understanding of the brine reserves and provide key inputs to design the brine production system.
- On
April 20, 2023 , the Company completed its acquisition of Arena Minerals and its 65% ownership interest in the Sal de la Puna project, adjacent to the Pastos Grandes project inSalta, Argentina .
- In
mid-June 2023 , major earthworks construction commenced atThacker Pass to support the target of initial production in the second half of 2026.- Deposits on long-lead items are expected to start in Q3 2023 and will continue through Q4 2024.
- The Company continues to work closely with the
U.S. Department of Energy (“DOE ”) Loans Program Office to advance confirmatory due diligence and term sheet negotiations for the Advanced Technology Vehicles Manufacturing Loan Program (“ATVM Loan Program”), following the receipt of a Letter of Substantial Completion onFebruary 22, 2023 .- The Company expects the DOE ATVM Loan Program conditional approval process to be completed in 2023 and if approved, to fund up to 75% of capital costs for construction of Phase 1. Development costs incurred by the project may qualify as eligible costs under the ATVM Loan Program as of
January 31, 2023 . - The Company has approved a 2023 construction budget of
$125 million with$48 million cash spent in Q2 2023 for construction of water pipelines and ponds, infrastructure improvements and the start of major earthworks.
- The Company expects the DOE ATVM Loan Program conditional approval process to be completed in 2023 and if approved, to fund up to 75% of capital costs for construction of Phase 1. Development costs incurred by the project may qualify as eligible costs under the ATVM Loan Program as of
- On
February 6, 2023 , theUS District Court , District ofNevada ruled favorably for the Company in the appeal filed against theBureau of Land Management by declining to vacate the Record of Decision.The U.S. Court of Appeals for the Ninth Circuit affirmed the District Court’s decision onJuly 17, 2023 .
Corporate
- As at
June 30, 2023 , the Company had$502.0 million in cash and cash equivalents and short-term bank deposits, with an additional$75 million in available credit. - On
July 31, 2023 , at the annual, general and special meeting ofLithium Americas shareholders, 98.85% of the votes cast by shareholders present in person or by proxy at the meeting voted in favor of the separation of the Company intoLithium Americas (Argentina) Corp. (“LithiumArgentina ”) and a newLithium Americas Corp. (“Lithium Americas (NewCo)”), pursuant to a statutory plan of arrangement (the “Separation”). The Separation is targeted to become effective in earlyOctober 2023 .- Additionally, in connection with the second tranche of the previously announced
$650 million investment byGeneral Motors Holdings LLC (“GM ”), the Company’s shareholders passed two resolutions approving: (a) the ownership byGM and its affiliates of more than 20% of the issued and outstanding shares of the Company (or following the Separation,Lithium Americas (NewCo)); and (b)$27.74 per share (as adjusted for the Separation) as the maximum subscription price at which Tranche 2 of GM’s investment would be made.
- Additionally, in connection with the second tranche of the previously announced
- On
August 4, 2023 , the Company obtained a final order from theSupreme Court of British Columbia approving the plan of arrangement to effect the Separation.
TECHNICAL INFORMATION
The Technical Information in this news release has been reviewed and approved by
FINANCIAL RESULTS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information) | Quarters ended | ||||||
2023 | 2022 | ||||||
$ | $ | ||||||
Expenses | (17.1 | ) | (90.3 | ) | |||
Net income/(loss) | 25.8 | (16.6 | ) | ||||
Income/(loss) per share – basic | 0.16 | (0.12 | ) | ||||
Income/(loss) per share – diluted | 0.16 | (0.12 | ) |
(in US$ million) | As at | As at | |||||
$ | $ | ||||||
Cash, cash equivalents and short-term bank deposits | 502.0 | 352.1 | |||||
Total assets | 1,501.9 | 1,016.5 | |||||
Total long-term liabilities | (203.5 | ) | (212.9 | ) |
Net income in Q2 2023 versus loss in Q2 2022 is primarily due to lower share of loss of Caucharí-Olaroz project partially offset by lower gain on change in fair value of the
In H1 2023, total assets increased primarily due to acquisition of Arena Minerals and cash proceeds from the first tranche investment by
This news release should be read in conjunction with Lithium Americas’ condensed consolidated interim financial statements and management's discussion and analysis for the quarter ended
ABOUT
For further information contact:
Investor Relations
Telephone: 778-656-5820
Email: ir@lithiumamericas.com
Website: www.lithiumamericas.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking information”). These statements relate to future events or the Company’s future performance. All statements, other than statements of historical fact, may be forward-looking information. Information concerning Mineral Resource and Mineral Reserve estimates also may be deemed to be forward-looking information in that it reflects a prediction of mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking information generally can be identified by the use of words such as “seek,” “anticipate,” “plan,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “predict,” “propose,” “potential,” “targeting,” “intend,” “could,” “might,” “should,” “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
In particular, this news release contains forward-looking information, including, without limitation, with respect to the following matters or the Company’s expectations relating to such matters: goals of the Company; development of the Caucharí-Olaroz project and the
Forward-looking information does not take into account the effect of transactions or other items announced or occurring after the statements are made. Forward-looking information is based upon a number of expectations and assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. With respect to forward-looking information listed above, the Company has made assumptions regarding, among other things: current technological trends; a cordial business relationship between the Company and third party strategic and contractual partners, including the co-owners of the Caucharí-Olaroz project; ability of the Company to fund, advance and develop the Caucharí-Olaroz project and the
Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, the Company can give no assurance that these assumptions and expectations will prove to be correct. Since forward-looking information inherently involves risks and uncertainties, undue reliance should not be placed on such information. The Company’s actual results could differ materially from those anticipated in any forward-looking information as a result of the risk factors set out herein and in the Company’s latest annual information form (“AIF”) available on SEDAR.
All forward-looking information contained in this news release is expressly qualified by the risk factors set out in the Company’s latest AIF, management information circular and management discussion & analysis. Such risk factors are not exhaustive. The Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement. Additional information about the above-noted assumptions, risks and uncertainties is contained in the Company’s filings with securities regulators, including our latest AIF and management information circular, which are available on SEDAR at www.sedar.com.
Source:
2023 GlobeNewswire, Inc., source