VANCOUVER, British Columbia, March 20, 2024 (GLOBE NEWSWIRE) — Lithium Americas (Argentina) Corp. (“Lithium Argentina,” the “Company,” or “LAAC“) (TSX:LAAC) (NYSE:LAAC), formerly Lithium Americas Corp. (“Lithium Americas” or “LAC“), today announced fourth quarter and full year 2023 results, as well as its 2024 outlook.
Highlights
On March 18, 2024, Sam Pigott commenced as President and CEO of the Company. John Kanellitsas will remain Executive Chairman of the Company.
On March 19, 2024, Sam Pigott and Monica Moretto were appointed to the Board of Directors.
On March 5, 2024, Ganfeng Lithium Co. Ltd. (“Ganfeng“) agreed to invest $70M for an expected 15% stake in the Pastos Grandes project through a subscription of newly-issued shares of the Company’s Argentine subsidiary, Proyecto Pastos Grandes S.A. (the “Pastos Grandes Transaction“).
Ganfeng, with support of Lithium Argentina, will undertake preparation of a regional development plan for the Pastos Grandes basin and surrounding properties, expected to be finalized by the end of 2024.
The transaction is expected to close in Q2 2024 with proceeds available to support the Company’s Argentine operations.
Operational Highlights
Production commenced in June 2023 at Caucharí-Olaroz, the largest new greenfield lithium brine project.
In 2023, approximately 6,000 tonnes of lithium carbonate were produced, achieving 99.5% lithium carbonate content and technical-quality specifications.
Caucharí-Olaroz is producing at approximately 50% of the 40,000 tonnes per annum (“tpa“) capacity.
The operation is targeting to reach nameplate capacity on a limited basis by mid-2024 and maintain a level near capacity on a steady state basis by the end of the year.
2024 targeted production at Caucharí-Olaroz of 20,000 – 25,000 tonnes of lithium carbonate.
In the current price environment, the project is expected to generate positive cash flow from operations in 2024.
While planning for Stage 2 expansion in production capacity continues to advance, the Company has not committed material capital to growth capex at this time.
Financial Highlights
As of December 31, 2023, the Company had $122M in cash and cash equivalents.
The Company has $259M in convertible debt at 1.75% due in early 2027 and has not drawn on its $75M credit facility with Ganfeng.
As of December 31, 2023, Minera Exar S.A., the Argentine joint venture company owned by the Company (44.8%), Ganfeng (46.7%) and Jujuy Energia y Mineria Sociedad del Estado (8.5%) had approximately $234M (on a 100% basis, less cash collateral) of local debt tied to funding working capital and startup costs.
The Company and Ganfeng are in the process of finalizing new credit facilities to refinance a substantial portion of this local debt with longer maturity credit facilities typical of an operating business.
Cognizant of market conditions in the lithium market, the Company has commenced proactive measures to reduce discretionary exploration and evaluation and general and administrative spending at the corporate level by 25%.
Commenting on the results for the twelve-month period ended December 31, 2023, John Kanellitsas, Executive Chairman, Lithium Argentina commented:
“Last year was a milestone year for Lithium Argentina, with the commencement of operations at the Caucharí-Olaroz site in Argentina. This achievement was the culmination of years of hard work, dedication and determination, and an over $ 1 billion investment into Northern Argentina. I am proud of the cross-cultural team that came together to diligently progress Caucharí-Olaroz, making it the success it is today. Additionally, last year Lithium Argentina closed on the acquisition of our majority stake in the Sal de la Puna project and completed the spin-off of our North American assets. I am confident that the great work that has been done to date, will be the foundation for great achievements for the Company in the future”.
Mr. Kanellitsas closed by saying, “I am honored to welcome Sam Pigott as President and CEO, his 20 plus-years of experience in mining, finance and business development will be invaluable to the Company and I look forward to working with him in my continued role as Executive Chairman”.
Sam Pigott, CEO of Lithium Argentina, commented:
“Following the accomplishments of Lithium Argentina, I am eager to work with this experienced team and Board to take the Company to the next level and maximize value for all shareholders. As I look to the coming year, the priority is completing the ramp up of Stage 1 of Caucharí-Olaroz and transitioning from development to operations. The project is well on its way to completing commissioning and is currently producing at approximately 50% capacity, making it already among the largest operations in Argentina. The operation is targeting to reach nameplate capacity on a limited basis by mid-2024 and maintain a level near capacity on steady state basis by the end of the year. The Company looks forward to advancing its role in providing such a critical input to the electric vehicle industry. While, the commissioning of the project has been going very well, we will remain cognizant of the market environment and will make thoughtful decisions to ensure that shareholder value is protected.”
“The recent agreement to prepare a regional development plan together with Ganfeng for their Pozuelos Pastos Grandes project and Lithium Argentina’s Pastos Grandes and Sal de la Puna projects is a potentially lucrative opportunity to organize the development of these assets in a logical way while maintaining optionality for offtake. The Company’s strong balance sheet coupled with the high quality and low-cost nature of its brine assets in Argentina, will position it better to navigate the cyclical nature of the lithium market today and in the future.”
INVESTOR WEBCAST
AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR 10:00am ET ON THURSDAY, MARCH 21, 2024.
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SELECTED ANNUAL FINANCIAL INFORMATION
The following table provides a summary of the Company’s financial operations for the years ended December 31, 2023 (“FY 2023“), December 31, 2022 (“FY 2022“), and December 31, 2021 (“FY 2021“).
For more detailed information, refer to the audited consolidated financial statements for FY …