Lithium Americas Reports Second Quarter 2024 Results
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) has reported its Q2 2024 financial results. Key highlights include:
1. A $2.26 billion conditional loan commitment from the U.S. Department of Energy for Thacker Pass Phase 1 construction.
2. Site preparation completed for major earthworks at Thacker Pass.
3. $375.8 million in cash and cash equivalents as of June 30, 2024.
4. Net loss of $12.3 million for the six months ended June 30, 2024.
5. Advancement of the Workforce Hub preparation.
6. Receipt of an $11.8 million grant from the U.S. Department of Defense.
The company is focusing on closing the DOE loan and GM investment to commence major construction by year-end.
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ha riportato i risultati finanziari per il secondo trimestre del 2024. Punti salienti includono:
1. Un impegno di prestito condizionato di 2,26 miliardi di dollari da parte del Dipartimento dell'Energia degli Stati Uniti per la costruzione della Fase 1 di Thacker Pass.
2. La preparazione del sito è stata completata per i principali lavori di terra a Thacker Pass.
3. 375,8 milioni di dollari in contante e equivalenti in contante al 30 giugno 2024.
4. Una perdita netta di 12,3 milioni di dollari per i sei mesi terminati il 30 giugno 2024.
5. Avanzamento della preparazione del Workforce Hub.
6. Ricezione di un finanziamento di 11,8 milioni di dollari dal Dipartimento della Difesa degli Stati Uniti.
L'azienda si sta concentrando sulla chiusura del prestito del DOE e dell'investimento di GM per iniziare i principali lavori di costruzione entro la fine dell'anno.
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ha informado sobre sus resultados financieros del segundo trimestre de 2024. Puntos destacados incluyen:
1. Un compromiso de préstamo condicional de 2.26 mil millones de dólares del Departamento de Energía de los EE. UU. para la construcción de la Fase 1 de Thacker Pass.
2. La preparación del sitio ha sido completada para importantes trabajos de movimiento de tierra en Thacker Pass.
3. 375.8 millones de dólares en efectivo y equivalentes de efectivo al 30 de junio de 2024.
4. Pérdida neta de 12.3 millones de dólares para los seis meses finalizados el 30 de junio de 2024.
5. Avance en la preparación del Workforce Hub.
6. Recepción de una subvención de 11.8 millones de dólares del Departamento de Defensa de los EE. UU.
La compañía se está enfocando en cerrar el préstamo del DOE y la inversión de GM para comenzar la construcción principal para fin de año.
리튬 아메리카스 주식회사 (TSX: LAC) (NYSE: LAC)가 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
1. Thacker Pass 1단계 건설을 위한 미 에너지부의 22억 6천만 달러 규모의 조건부 대출 약속.
2. Thacker Pass에서 주요 토목 공사를 위한 현장 준비가 완료되었습니다.
3. 2024년 6월 30일 기준으로 3억 7천5백80만 달러의 현금 및 현금성 자산.
4. 2024년 6월 30일로 종료된 6개월 동안의 순손실이 1천2백30만 달러입니다.
5. 인력 허브 준비 진전.
6. 미 국방부로부터 1천1백80만 달러의 보조금 수령.
회사는 DOE 대출 및 GM 투자를 마감하여 연말까지 주요 건설을 시작하는 데 집중하고 있습니다.
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) a annoncé ses résultats financiers pour le deuxième trimestre de 2024. Les principaux points forts incluent :
1. Un engagement de prêt conditionnel de 2,26 milliards de dollars de la part du Département de l'énergie des États-Unis pour la construction de la Phase 1 de Thacker Pass.
2. La préparation du site est terminée pour les principaux travaux de terrassement à Thacker Pass.
3. 375,8 millions de dollars en liquidités et équivalents de liquidités au 30 juin 2024.
4. Une perte nette de 12,3 millions de dollars pour les six mois se terminant le 30 juin 2024.
5. Avancement de la préparation du Workforce Hub.
6. Réception d'une subvention de 11,8 millions de dollars du Département de la Défense des États-Unis.
La société se concentre sur la conclusion du prêt du DOE et de l'investissement de GM pour commencer les gros travaux de construction d'ici la fin de l'année.
Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Wichtige Höhepunkte sind:
1. Ein bedingtes Darlehensengagement von 2,26 Milliarden US-Dollar vom US-Energieministerium für den Bau der Phase 1 von Thacker Pass.
2. Die Standortvorbereitung für große Erdarbeiten in Thacker Pass wurde abgeschlossen.
3. 375,8 Millionen US-Dollar in Bar und liquiden Mitteln zum 30. Juni 2024.
4. Ein Nettoverlust von 12,3 Millionen US-Dollar für die sechs Monate, die am 30. Juni 2024 endeten.
5. Fortschritt bei der Vorbereitung des Workforce Hub.
6. Erhalt eines Zuschusses in Höhe von 11,8 Millionen US-Dollar vom US-Verteidigungsministerium.
Das Unternehmen konzentriert sich darauf, das Darlehen des DOE und die GM-Investition abzuschließen, um bis zum Ende des Jahres mit dem großen Bau zu beginnen.
- $2.26 billion conditional loan commitment from U.S. DOE for Thacker Pass Phase 1
- Site preparation for major earthworks at Thacker Pass completed
- $375.8 million in cash and cash equivalents as of June 30, 2024
- $11.8 million grant received from U.S. Department of Defense
- Procurement packages and executable purchase orders in place for FNTP
- Net loss of $12.3 million for the six months ended June 30, 2024, compared to net income in the same period of 2023
- Increase in general and administrative and equity compensation expenses
Lithium Americas' Q2 2024 results reveal significant progress in the Thacker Pass project, but with financial implications to consider. The $2.26 billion conditional DOE loan is a major catalyst, potentially covering a substantial portion of Phase 1 construction costs. However, the company's net loss of
The cash position of
The Thacker Pass project is progressing well, with site preparation completed and readiness for major construction. The 30% design completion indicates steady advancement, but there's still significant work ahead. The planned 40,000 tonnes per annum production capacity for Phase 1 is substantial, potentially positioning Lithium Americas as a major player in the U.S. lithium market.
The
Lithium Americas' publication of its ESG-S report demonstrates a commitment to transparency and sustainable development. This is important in the lithium industry, where environmental and social concerns can significantly impact project viability. The focus on creating value for stakeholders and responsible lithium production aligns with increasing investor demands for ESG compliance.
The planned Workforce Hub for construction workers shows foresight in managing social impacts. However, investors should closely monitor the company's performance against its ESG commitments, particularly regarding water usage and community relations at Thacker Pass. The DOE loan's conditional commitment likely included rigorous ESG criteria, providing additional assurance of the project's sustainability credentials.
(All amounts in US$ unless otherwise indicated)
HIGHLIGHTS
Thacker Pass
-
On March 12, 2024, the Company received from the
U.S. Department of Energy (“DOE”) a conditional commitment for a loan (the “DOE Loan”) under the Advanced Technology Vehicles Manufacturing Loan Program, to fund eligible construction costs of the processing facilities at Thacker Pass to produce an initial 40,000 tonnes per annum of battery grade lithium carbonate (“Phase 1”). The Company continues to work closely with the DOE and expects to close the DOE Loan in the second half of 2024 (“2H24”).$2.26 billion - Site preparation for major earthworks has been completed, and Thacker Pass is prepared for the commencement of major construction following issuing full notice to proceed (“FNTP”), expected in 2H24 following closing of the DOE Loan.
-
The Company continues to focus on increasing the level of detailed engineering, currently over
30% design complete, alongside advancing procurement and execution planning. Throughout Q2 2024, procurement packages and executable purchase orders were put in place in preparation for FNTP. - During Q2 2024, the Company advanced site preparation for the Workforce Hub (“WFH”), a planned all-inclusive housing facility for construction workers. The WFH will be built to align with Thacker Pass Phase 1 construction schedule.
-
In August 2024, the Company received a
grant from the$11.8 million U.S. Department of Defense to support an upgrade of the local power infrastructure and to help build a transloading facility. -
During the three months ended June 30, 2024,
of construction capital costs and other project-related costs were capitalized.$27.7 million
Corporate
-
As of June 30, 2024, the Company had approximately
in cash and cash equivalents.$375.8 million - In April 2024, the Company completed an underwritten public offering (the “Offering”) which, together with the DOE Loan, satisfies the funding condition to closing General Motors Holdings LLC (“GM”) second tranche investment (“Tranche 2 Investment”). The DOE Loan and the GM Tranche 2 Investment are expected to close in the second half of the year, and together, with the cash on hand, are expected to fund Thacker Pass Phase 1 construction capital expenditures.
- The Company published an environment, social, governance and safety (“ESG-S”) report, themed “Advancing Sustainable Value Creation,” covering sustainability performance and progress for the period January 1 to December 31, 2023, including activities related to Thacker Pass and the Company’s Lithium Technical Development Center. The ESG-S report highlights the Company’s commitment to sustainably develop Thacker Pass to become a responsible lithium producer and create value for stakeholders. The ESG-S report is available on the Company’s website.
“Our team is focused on closing the DOE Loan and GM investment to move Thacker Pass into major construction by the end of the year," said Jonathan Evans, President and Chief Executive Officer of Lithium Americas. “We have been working closely with the
TECHNICAL INFORMATION
The scientific and technical information in this news release has been reviewed and approved by Rene LeBlanc, PhD, SME, Vice President, Growth and Product Strategy of the Company, and a ”qualified person” as defined under National Instrument 43-101 and Subpart 1300 of Regulation S-K under the United States Securities Act of 1933.
FINANCIALS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information) |
Six months ended June 30, |
|
|
2024 |
2023 |
|
$ |
$ |
Expenses |
11.7 |
10.7 |
Net loss/(income) |
12.3 |
(9.2) |
Loss/(Income) per share – basic |
0.07 |
(0.06) |
(in US$ million) |
As at June 30, 2024 |
As at December 31, 2023 |
|
$ |
$ |
Cash and cash equivalents |
375.8 |
195.5 |
Total assets |
692.2 |
439.5 |
Total long-term liabilities |
8.6 |
7.5 |
During the six months ended June 30, 2024, there was a net loss compared with net income during the six months ended June 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.
At June 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 six months ended June 30, 2024.
This news release should be read in conjunction with the Company’s Financial Statements and MD&A for the six months ended June 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
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
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: 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; the risk that the Arrangement may not be tax-free for income tax purposes and potential significant tax liabilities that the Company may be exposed to if the tax-deferred spinoff rules are not met; the risk of tax indemnity obligations owed by the Company to Lithium Argentina following the Arrangement becoming payable, including as a result of events outside of the Company's control; 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
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.
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INVESTOR CONTACT
Virginia Morgan, VP, IR and ESG
+1-778-726-4070
ir@lithiumamericas.com
Source: Lithium Americas Corp.
FAQ
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