Lithium Americas (LAC) Q3 2024 earnings summary

Executive summary

• Transitioned to U.S. GAAP reporting as of January 1, 2025, after losing foreign private issuer status as of June 30, 2024.

• Advanced Thacker Pass project with a $2.26 billion DOE loan and a joint venture agreement with GM, targeting 40,000 tonnes per annum of battery-grade lithium carbonate production.

• All assets and liabilities tied to Thacker Pass, with no revenues generated and operations funded through equity and strategic investments.

• GM to invest $625 million in Thacker Pass JV, acquiring a 38% asset-level stake; previous subscription agreement terminated in favor of the JV structure.

• CFO Pablo Mercado to depart; April Hashimoto appointed as Interim CFO.

Financial highlights

• Cash and cash equivalents increased to $341.2 million at September 30, 2024, from $195.5 million at December 31, 2023, reflecting proceeds from an April 2024 public offering.

• Net loss for the nine months ended September 30, 2024 was $20.3 million, compared to net income of $9.0 million in the same period last year, driven by loss on fair value of financial instruments and higher G&A and equity compensation expenses.

• Total assets rose to $693.0 million at September 30, 2024, from $439.5 million at December 31, 2023, mainly due to higher cash balances and capitalized Thacker Pass expenditures.

• $34.4 million in construction and project-related costs capitalized during Q3 2024.

• Stockholders’ equity increased to $635.1 million at September 30, 2024, from $384.9 million at December 31, 2023.

Outlook and guidance

• Final investment decision for Thacker Pass targeted by year-end 2024, with major construction to follow.

• JV with GM and DOE loan expected to de-risk funding and support project execution; additional offtake agreement with GM anticipated upon JV closing.

• Three-year construction build expected to create 1,800 direct jobs and support a North American lithium supply chain.

• Announced a $250 million strategic investment from Orion Resource Partners in March 2025, expected to fully fund Phase 1 construction.