Highlights
- Operational Highlights
- During the three months ended
March 31, 2024 , Caucharí-Olaroz produced approximately 4,500 tonnes of lithium carbonate.- The project continues to advance through the ramp up and test higher production levels.
- In
April 2024 , a planned shutdown was performed to inspect and improve reliability of the processing plant.
- Caucharí-Olaroz remains on target to produce 20,000 - 25,000 tonnes of lithium carbonate in 2024.
- The target remains to reach and maintain a near steady state production level by the end of the year.
- For 2024, Caucharí-Olaroz expects to be operating cash flow positive when adjusted for working capital changes.
- Working capital requirements are expected to remain elevated through the first half of 2024 as production continues to ramp up and sales shipments begin to normalize.
- Working capital requirements are expected to remain elevated through the first half of 2024 as production continues to ramp up and sales shipments begin to normalize.
- During the three months ended
- Financial Highlights
- As of
March 31, 2024 , Lithium Argentina had$86M in cash and cash equivalents with an additional$20M in collateral related to loans to Caucharí-Olaroz expected to be released in Q2 2024.- The Company has not drawn on its
$75M credit facility with Ganfeng Lithium Co. Ltd. (“Ganfeng”) and has$259M in convertible debt at 1.75% due in early 2027.
- The Company has not drawn on its
- As of
March 31, 2024 ,Minera Exar S.A. (“Minera Exar”), the Argentine joint venture company owned by the Company (44.8%), Ganfeng (46.7%) and Jujuy Energia y Mineria Sociedad del Estado (“JEMSE”) (8.5%) had approximately$241M (on a 100% basis, less cash collateral) of local debt tied to funding working capital and startup costs.- A substantial portion of the local debt is being refinanced with unsecured credit facilities typical of an operating company.
- The Company is working with Ganfeng to pursue additional longer term debt options to leverage improved lending conditions in
Argentina and support future growth plans.
- As of
- Corporate Highlights
- On
March 5, 2024 , Ganfeng agreed to invest$70M for an expected 15% stake in the Pastos Grandes project through a subscription of newly-issued shares of the Company’s Argentine subsidiary,Proyecto Pastos Grandes S.A. (the “Pastos Grandes Transaction”). The transaction is expected to close mid-2024 with proceeds available to support the Company’s Argentine operations. - In the first quarter of 2024, the Company commenced additional measures to reduce discretionary spending at the corporate level by 25%.
- The Company will hold its Annual General Shareholders Meeting on
June 20, 2024 .
- On
Commenting on the results for the three-month period ended
“I am proud of how the team at Caucharí-Olaroz continues to advance through the ramp up and progress towards a capacity of 40,000 tonnes per annum. During the first quarter 2024, the production volumes totaled approximately 4,500 tonnes, about 20% higher than volumes produced during the fourth quarter. The Company remains focused on completing the ramp-up at Caucharí-Olaroz, prioritizing prudent financial management practices to ensure the company remains sufficiently capitalized and advancing the regional development plan for the Pastos Grandes basin with Ganfeng.”
He closed by saying, “Looking ahead, we remain optimistic about the outlook for the lithium industry, which is buoyed by favorable demand fundamentals and has seen positive pricing trends in recent months. With Caucharí-Olaroz operating and a regional development plan being advanced and a talented team of professionals in
INVESTOR WEBCAST
AN INVESTOR WEBCAST HAS BEEN SCHEDULED FOR
Please use the following link to access:
First Quarter 2024 Results Webcast
FINANCIAL RESULTS
Selected consolidated financial information is presented as follows:
(in US$ million except per share information) | Quarters ended | ||||||
2024 | 2023 | ||||||
$ | $ | ||||||
Expenses | (20.8 | ) | (9.7 | ) | |||
Net loss | (10.2 | ) | (6.4 | ) | |||
Loss per share – basic | (0.06 | ) | (0.04 | ) |
(in US$ million) | As at 2024 | As at | ||||||
$ | $ | |||||||
Cash and cash equivalents | 86.2 | 122.3 | ||||||
Total assets | 1,046.1 | 1,055.0 | ||||||
Total liabilities | (226.0 | ) | (226.1 | ) |
In Q1 2024, net loss was attributable to expenses in the period partially offset by a gain on change in fair value of the convertible note derivative liability.
In Q1 2024, total assets decreased primarily due to a decrease in cash and cash equivalents which were used to fund the Company’s operations and a decrease in investment in the Caucharí-Olaroz project due to elimination of the Company’s portion of capitalized intercompany interest, partially offset by an increase in loans advanced to
This news release should be read in conjunction with Lithium Argentina’s condensed consolidated interim financial statements and management's discussion and analysis for the quarter 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