Lithium Americas Reports Third Quarter 2024 Results
(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia--(BUSINESS WIRE)--November 07, 2024--
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)
------------------------------ -------------- -----------------
As at September 30, As at December 31,
(in US$ millions) 2024 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
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