Lithium Americas (LAC) Q2 2024 earnings summary

Executive summary

• Advanced Thacker Pass project with site preparation and procurement for Phase 1, targeting 40,000 tonnes/year battery-grade lithium carbonate production.

• Secured a $2.26 billion conditional DOE loan commitment and an $11.8 million Department of Defense grant for infrastructure upgrades.

• Completed an underwritten public offering in April 2024, increasing cash reserves and meeting funding conditions for GM's second tranche investment.

Financial highlights

• Reported net loss of $12.3 million for the six months ended June 30, 2024, compared to net income of $9.2 million in the prior year period, due to fair value loss on financial instruments and higher operating costs.

• Cash and cash equivalents rose to $375.8 million as of June 30, 2024, up from $195.5 million at year-end 2023, reflecting proceeds from the public offering.

• Total assets increased to $692.2 million from $439.5 million at December 31, 2023.

• Capitalized $27.7 million in construction and project-related costs during Q2 2024.

Outlook and guidance

• DOE loan and GM Tranche 2 Investment expected to close in the second half of 2024, fully funding Thacker Pass Phase 1 construction.

• Major construction at Thacker Pass anticipated to commence following final investment decision and loan closing in 2H24.

• Three-year construction build at Thacker Pass expected to create approximately 1,800 direct jobs.