Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“
Lithium
Americas” or the “
Company”) has reported
its financial and operating results for the fourth quarter and year
ended December 31, 2023 (“
Q4 2023”) and has filed
its audited consolidated financial statements
(“
Financials”) and management’s discussion and
analysis (“
MD&A”) for the year ended December
31, 2023. The Company is also providing an update on its Thacker
Pass lithium project in Humboldt Country, Nevada (“
Thacker
Pass”).
HIGHLIGHTS
Thacker Pass
- Site preparation
for major earthworks has been completed, including all site
clearing, commissioning a water supply system, site access
improvements and site infrastructure.
- The Company is
currently focused on advancing detailed engineering, procurement
and execution planning for the construction of Thacker Pass Phase
1. Detailed engineering is approximately 30% design complete to
date, and the Company plans to continue to increase the level of
detailed engineering in advance of issuing full notice to proceed
(“FNTP”), which is expected in the second half of
2024.
- On March 12, 2024,
the Company received a conditional commitment (“Conditional
Commitment”) from the U.S. Department of Energy
(“DOE”) for a $2.26 billion loan under the
Advanced Technology Vehicles Manufacturing
(“ATVM”) Loan Program (the
“Loan”) for financing the construction of the
processing facilities at Thacker Pass, targeting to produce an
initial 40,000 tonnes per year (“tpa”) of battery
grade lithium carbonate (“Phase 1”).
- The Company and its
engineering, procurement and construction management
(“EPCM”) contractor, Bechtel, entered into a
National Construction Agreement (Project Labor Agreement)
(“PLA”) with North America’s Building Trades
Unions (“NABTU”) for construction of Thacker
Pass.
- The Company leased
a parcel of land in the nearby City of Winnemucca for a
transloading terminal (“TLT”) to be used during
operations, providing direct access to the mainline railroad and an
interstate highway.
- Estimated total
capital cost (“CAPEX”) for Phase 1 construction
has been revised to $2.93 billion to reflect updated quantities and
execution planning tied to increased engineering progress, use of
union labor through a PLA for construction of Thacker Pass,
development of an all-inclusive housing facility for construction
workers, updated equipment pricing and a larger project
contingency.
- The DOE Loan plus
the strategic investment from General Motors Holdings LLC
(“GM”) are expected to provide the majority of the
capital necessary to fund Phase 1.
- During the year
ended December 31, 2023, $193.7 million was spent on Thacker Pass.
The Company expects capital expenditures to be significantly lower
in the first half of 2024 as the focus turns from early works to
advancing detailed engineering and project planning ahead of
FNTP.
- Mechanical
completion of Thacker Pass Phase 1 is targeted for 2027 following a
three-year construction period. Major construction is expected to
commence in the second half of 2024 following the anticipated
closing of the DOE Loan and issuance of FNTP.
- In December 2023,
the U.S. District Court, District of Nevada issued a final order
and judgment dismissing a lawsuit that was filed in February 2023
by three tribes asserting among other claims, inadequate
consultation by the Bureau of Land Management prior to the issuance
of the Record of Decision for Thacker Pass.
Corporate
- As of December 31,
2023, the Company had approximately $196 million in cash and cash
equivalents.
- In light of current
market conditions and to preserve strong liquidity, the Company has
reduced project capital expenditures to minimal levels until
closing of the DOE Loan and issuance of FNTP, which are expected in
the second half of the year. In addition, the Company has taken
actions to reduce its general and administrative and operating
expense budget for 2024 by more than 25%.
TECHNICAL INFORMATION
The scientific and technical information in this
news release has been reviewed and approved by Rene LeBlanc, PhD,
SME, Vice President, Growth and Product Strategy of the Company,
and a “qualified person” as defined under National Instrument
43-101 and Subpart 1300 of Regulation S-K under the United States
Securities Act of 1933.
FINANCIALS
Selected consolidated financial information is
presented as follows:
(in US$ million except per share information) |
Year ended December 31, |
|
2023 |
2022 |
|
$ |
$ |
Expenses |
27.6 |
60.9 |
Net loss |
3.9 |
67.8 |
Loss per share – basic |
0.02 |
0.42 |
(in US$ million) |
As at December 31, 2023 |
As at December 31, 2022 |
|
$ |
$ |
Cash and cash equivalents |
195.5 |
0.6 |
Total assets |
439.5 |
27.8 |
Total long-term liabilities |
7.5 |
8.0 |
During the year ended December 31, 2023,
expenses and net loss decreased due to the commencement of
construction at Thacker Pass resulting in the commencement of
capitalization of a majority of project costs effective February 1,
2024. Also, at December 31, 2023, the Company recognized a $32.8
million gain on the change in fair value of the derivative
liability related to the number of shares to be issued pursuant to
the second tranche of the subscription agreement with GM.
In 2023, total assets
increased primarily due to the distribution to the Company pursuant
to the Arrangement, of the unspent remaining proceeds of the first
tranche of the GM investment and $75 million to establish
sufficient working capital, as well as the commencement of
capitalization of a majority of Thacker Pass costs effective
February 1, 2024.
This news release
should be read in conjunction with the Company’s Financial
Statements and MD&A for the year ended December 31, 2023, 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 100%-owned 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 tpa of battery-quality
lithium carbonate. The Company and its EPCM contractor, Bechtel,
entered into a PLA with NABTU 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.
INVESTOR
CONTACT
Virginia Morgan, VP, IR and
ESG+1-778-726-4070ir@lithiumamericas.comwww.lithiumamericas.com
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,” “continues,” “estimate,” “expect,” “may,”
“will,” “projects,” “predict,” “proposes,” “potential,” “target,”
“implement,” “scheduled,” “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, 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; timing
of the issuance of the FNTP; development of Thacker Pass, including
timing, progress, approach, continuity or change in plans,
construction, commissioning, milestones, anticipated production and
results thereof and expansion plans; expectations regarding
accessing funding from the ATVM Loan Program and the strategic
investment from GM, including the sufficiency of such funding and
investment for the majority of the Company’s capital requirements
for Phase 1; 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; the expected
reduction of the Company’s general and administrative and operating
expense budget for 2024; the timing, cost, quantity, capacity and
production at Thacker Pass; successful development of Thacker Pass,
the expected capital expenditures for the construction of Thacker
Pass, including the CAPEX for Phase 1 construction; 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. Risks and assumptions upon which such FLI
is based include, without limitation: the general business and
economic uncertainties and adverse market conditions; 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 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; the Company’s ability to obtain additional
financing on satisfactory terms or at all, including the outcome of
the ATVM Loan Program application; 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; changes to the Company’s current and future business
plans and the strategic alternatives available to the Company; 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.
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
financial statements and MD&A for the year ended December 31,
2023, available on the Company’s issuer profile on SEDAR+ at
www.sedarplus.ca and EDGAR at www.sec.gov. All FLI contained in
this news release is expressly qualified by the risk factors set
out in the aforementioned documents. 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.
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