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 andMonica 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.
- Production commenced in
- 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.
- The Company has
- 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$234M (on a 100% basis, less cash collateral) of local debt tied to funding working capital and startup costs.- The Company and Ganfeng are in the process of finalizing new credit facilities to refinance a substantial portion of this local debt with longer maturity credit facilities typical of an operating business.
- Cognizant of market conditions in the lithium market, the Company has commenced proactive measures to reduce discretionary exploration and evaluation and general and administrative spending at the corporate level by 25%.
- As of
Commenting on the results for the twelve-month period ended
“Last year was a milestone year for Lithium Argentina, with the commencement of operations at the Caucharí-Olaroz site in
“Following the accomplishments of Lithium Argentina, I am eager to work with this experienced team and Board to take the Company to the next level and maximize value for all shareholders. As I look to the coming year, the priority is completing the ramp up of Stage 1 of Caucharí-Olaroz and transitioning from development to operations. The project is well on its way to completing commissioning and is currently producing at approximately 50% capacity, making it already among the largest operations in
“The recent agreement to prepare a regional development plan together with Ganfeng for their Pozuelos Pastos Grandes project and Lithium Argentina’s Pastos Grandes and
INVESTOR WEBCAST
AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR
Please use the following link to access:
2023 Results Webcast
SELECTED ANNUAL FINANCIAL INFORMATION
The following table provides a summary of the Company’s financial operations for the years ended
For more detailed information, refer to the audited consolidated financial statements for FY 2023, FY 2022, and FY 2021 which can be found on SEDAR+.
Years Ended | |||||||||
(in US$ thousands) | 2023 | 2022 | 2021 | ||||||
$ | $ | $ | |||||||
Expenses of continuing operations | (36,346 | ) | (105,309 | ) | (1,806 | ) | |||
Income/(loss) from continuing operations after taxes | 17,581 | (32,527 | ) | 6,027 | |||||
Income/(loss) from discontinued operations | 1,270,788 | (61,041 | ) | (44,515 | ) | ||||
Net income/(loss) | 1,288,369 | (93,568 | ) | (38,488 | ) | ||||
Net income/(loss) per share - basic | 8.29 | (0.70 | ) | (0.32 | ) | ||||
Net income/(loss) per share - diluted | 8.02 | (0.70 | ) | (0.32 | ) | ||||
Cash and cash equivalents and short-term bank deposits | 122,293 | 352,102 | 510,607 | ||||||
Total assets | 1,055,026 | 1,016,548 | 817,342 | ||||||
Total long-term liabilities | (211,516 | ) | (212,901 | ) | (272,771 | ) | |||
The Separation was accounted for as a distribution of assets to shareholders pursuant to IFRIC 17, Distribution of Assets to Owners, whereby a dividend was recognized in deficit measured at the fair value of the net assets distributed with a corresponding dividend payable. The dividend payable was then settled through the distribution of the net assets. In accordance with IFRS 5, Non-Current Assets Held for Sales and Discontinued Operations, the operations of Lithium Americas (NewCo) have been classified as discontinued operations for the years ended
Expenses of continuing operations decreased from 2022 to 2023, primarily due to share of gain of the Caucharí-Olaroz project versus loss in the comparative period mainly as a result of foreign exchange revaluation of intercompany loans; offset by an increase in exploration and evaluation expenditures as result of the timing of the Pastos Grandes project development activities and general and administrative expenses due to an increase in salaries, professional fees and office and administration expenses.
In 2023, total assets increased primarily due to the acquisition of Arena Minerals Inc., loans advanced to
This news release should be read in conjunction with Lithium Argentina’s audited consolidated financial statements and the notes thereto for the year ended
ABOUT LITHIUM
Lithium
For further information contact:
Investor Relations
Telephone: +54-11-52630616
Email: ir@lithium-argentina.com
Website: www.lithium-argentina.com
TECHNICAL INFORMATION
The Technical Information in this news release with respect to Caucharí-Olaroz, has been reviewed and approved by
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. 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: 2024 expected production for the Caucharí-Olaroz project; goals of the Company; development of the Caucharí-Olaroz project, including timing of the ramp up in production capacity and product quality, timing of commissioning and ramp up of the KCI plant; expectations with respect to regional development planning for the Pasto Grandes basin and the timing thereof; and the timing of closing of the Pastos Grandes Transaction..
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 contained in this news release is based upon a number of expectations and assumptions and is subject to a number of risks and uncertainties, including but not limited to those related to: 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, develop and ramp up the Caucharí-Olaroz project, the impacts of the project when full production commences; ability of the Company to advance and develop the Pastos Grandes and
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”), management information circular, management discussion & analysis and other publicly filed documents (collectively, the “Company Public Disclosure”) all of which are available on SEDAR+.
All forward-looking information contained in this news release is expressly qualified by the risk factors set out in the latest Company Public Disclosures. Such risks include, but are not limited to the following: lithium prices; inability to obtain required governmental permits and government-imposed limitations on operations; technology risk; political risk associated with foreign operations, including co-ownership arrangements with foreign domiciled partners; risks arising from the outbreak of hostilities in
Source:
2024 GlobeNewswire, Inc., source