Lithium Americas Reports First Quarter 2018 Financial and Operating Results
- Development activities continue as planned with the advancement of detailed engineering, pond construction, camp construction, plant design and supply purchases, with Stage 1 production expected to commence in 2020.
- Engineering for the infrastructure is over 80% complete with plant design at close to 70% complete.
- Evaporation pond construction commenced in early February and the filling of the ponds is expected to begin in the second half of 2018.
- There are currently close to 400 people working in Argentina, including direct employees and contractors.
- Facilities to provide an additional 400 beds to the construction camp are already commissioned.
- On April 5, 2018 the Company updated the Measured and Indicated mineral resource at its Lithium Nevada project to 6.0 million tonnes of lithium carbonate equivalent (“LCE”) at 2,917 parts per million lithium (“ppm Li”) and the Inferred mineral resource to 2.3 million tonnes of LCE at 2,932 ppm Li.
- The updated resource represents an approximate 80% increase in the Measured and Indicated mineral resource from the Company’s 2016 resource estimate, and establishes Lithium Nevada as the largest known lithium resource in the United States.
- Remain on track to release results of NI 43-101 Preliminary Feasibility Study (“PFS”) by the end of Q2 2018.
- Continuing to evaluate potential partnership and financing scenarios to advance the Lithium Nevada project.
- The sales for the three months ended March 31, 2018 were US$1.1 million (Q1 2017 - US$1.2 million).
- As at March 31, 2018, the Company had US$43.5 million in cash and cash equivalents.
- As a result of the completion of the Ganfeng Lithium and Bangchak investment agreements in 2017, the Company has US$205 million in an undrawn debt facility to finance its share of capital expenditures with respect to the Minera Exar joint venture.
- In January 2018, the Company announced that it had received approval for the listing of its common shares (“Common Shares”) on the NYSE. The Common Shares opened for trading on the NYSE on January 25, 2018.
|Financial results||Q1 2018||Q1 2017||Change|
|Cost of sales||(1,677||)||(1,610||)||(67||)|
|Organoclay research and development||(133||)||(117||)||(16||)|
|General and administrative expenses||(2,017||)||(1,361||)||(656||)|
|Share of loss in Joint Venture||(164||)||(1,746||)||1,582|
|Foreign exchange gain/(loss)||1,369||(138||)||1,507|
Net loss for the three months ended March 31, 2018 was $4,567 compared to $4,960 for the three months ended March 31, 2017. Basic and diluted loss per share was $0.05 in Q1 2018 versus $0.08 in Q1 2017.
Exploration expenditures were $1,400 in Q1 2018 versus $563 in Q1 2017. The increase is due to costs incurred for the advancement of Lithium Nevada project.
The Company’s share of the Minera Exar joint venture losses decreased in Q1 2018 to $164 compared to $1,746 in Q1 2017 as the majority of costs incurred in Q1 2018 were capitalized given that the project entered the development phase in July 2017.
Stock-based compensation increased in Q1 2018 to $1,945 compared to $234 in Q1 2017 due to vesting of the 2017 stock option grants and restricted share awards to the Company’s employees, officers and directors. General and Administrative expenses increased in Q1 2018 to $2,017 versus $1,361 in Q1 2017 due to the costs of listing of the Company’s shares on the NYSE and filing of the base shelf prospectus on February 7, 2018.