Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (June 2010)
23 slides from Lithium Americas's investor presentation, Jun 14, 2010
Slide 1: Lithium Americas Corp. June 2010
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Slide 2: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation is intended to be strictly informational. The Company reserves the right, at its sole discretion, to modify all or any part of this presentation without any liability or notification to any person. This presentation include
Slide 3: Summary
Summary Successfully completed $45 million IPO on the TSX on May 13, 2010 Market Cap ~ $110 million Magna International Inc. and Mitsubishi Corporation : strategic investors 6th largest known lithium brine resource (43-101 complaint Inferred resource) Large land package in the best lithium
Slide 4: Project Location
Project Location Properties located in ARGENTINA, a country with a history of lithium production Infrastructure Available: Paved Road Natural Gas Sat and Cell Phone/Hotel/Gas Station/Internet 5 hours from Pacific deep sea port Cauchari-Olaroz has the potential of becoming a world class
Slide 5: Property Expansion
Property Expansion Since the IPO, Lithium Americas has acquired an additional 6,013 ha at its Cauchari and Olaroz property, bringing its total land package in this area to 43,451 ha The Company is fully environmentally permitted all the way to Final Feasibility Contracts signed with aboriginal
Slide 6: Exploration Update
Exploration Update Based on drill holes completed in 2009, a NI 43-101 compliant Technical Report identified an Inferred Resource of 4.9 million tonnes of lithium carbonate and 3 14.7 million tonnes of potash The Company continues to aggressively explore and advance the project in 2010 1 To as
Slide 7: Exploration Update
Exploration Update 2009 Achievements 2010 Achievements (up to June) Drilling: • Reverse Circulation 9 holes – 1,333m 8 holes - 1,700 • Diamond Drilling 5 holes – 1,280m 7 holes - 2,300 Geochemical Average Li grade: 510 mg/L Average Li grade: 580 mg/L Results Average K grade: 0.42% Average K grade: 0
Slide 8: Exploration Results: Reverse Circulation Drilling
Exploration Results: Reverse Circulation Drilling 2010 Program 2010 (to June)– to 2009 update Inferred Resource estimate to Indicated and Inferred Measured Resource of 4.9m Tonnes Li Carbonate 2009 Program – used to calculate Inferred 2010 Holes Resource estimate 8
Slide 9: 2009 and 2010 Reverse Circulation Results
2009 and 2010 Reverse Circulation Results Hole # Depth Length Li (mg/L) K (gr/L) Mg/Li PE-4 77-187 110 632 0.62 2,94 PE-6 54-164 110 870 0.69 2,33 2009 PE-7 145-248 99 504 0.41 2,40 PE-8 47-194 147 396 0.28 4,19 72-110 38 533 0.42 2.81 PE-09* 115-197 82 691 0.55 PE-10 95-152 57 437 0.50 191 153-234
Slide 10: Seismic Survey
Seismic Survey 12 seismic tomography lines completed (50 km) Seismic data was field tested with diamond and reverse circulation drilling The results show that the main lithologies can be traced with this technique at depth Deep aquifer extends from depth of 50m to approximately 400m. Drillin
Slide 11: Exploration Results: Diamond Drill Holes to date
Exploration Results: Diamond Drill Holes to date Section 2010 Holes 11
Slide 12: Geology
Geology 2009 2010 Diamond Drilling allows Lithology N Mean (%) N Mean (%) the reconstruction of the Clay 10 3.2 26 4.9 basin and measurement Silty Loam 23 12 18 8.8 of porosity in the rocks Loamy Sand 25 26.8 29 15 that host the brine Sandy Loam 0 25 11 Porosity is a direct Sand 49 25.5 85 27 in
Slide 13: Air Lift Tests
Air Lift Tests Simple Air Lift tests were performed in order to determine the relative range of the brine yield of the aquifer Results indicate average flow rates of 4.3 litres per second for short terms tests with higher yield at depth Longer term tests yielded over 150,000 liters over 12 hou
Slide 14: Conclusions
Conclusions Inferred Resource Estimate done with 2009 data is confirmed and extended by the 2010 data Only two more reverse circulation holes and 3 diamond drill holes are required to complete the exploration phase of Zone 1 The Company will be able to update the resource from “inferred” to a
Slide 15: Comparison to the Largest Global Li Brine Deposits
Comparison to the Largest Global Li Brine Deposits Lithium Americas’ has the 6th largest known lithium brine resource, with all drill holes open at depth and exploration potential still to the north and the south Lithium Carbonate Resource Project Name Company Country (in Tonnes) Uyuni 1 Comibol B
Slide 16: Capital Structure
Capital Structure Raised $20m via Private Placements in 2009 Successfully completed $45m IPO on the TSX on May 13, 2010 IPO Share Price = $1.85 Market Cap ~ $110 million Common Shares Outstanding = 73,524,400 Fully Diluted Shares Outstanding = 86,238,504 No Debt Strategic Investor Co
Slide 17: Strategic Investor Agreements
Strategic Investor Agreements Summary of Strategic Investor Agreements Current Terms of Arrangement Interest (%) * Off-take option for up to 25% of lithium production at a 5% discount to prevailing market price (at Magna’s option; subject to Magna maintaining a minimum 9.9% equity interest) Inte
Slide 18: Important topics of the Deposit
Important topics of the Deposit Lithium Carbonate prices in 2009 are around $5,000 tonne Potash prices in 2009 are around $400 tonne Productions Costs in Brine mines are reported to be around $2000 per tonne The 43-101 Inferred resource is 4.9 million tonnes of Lithium Carbonate and 14.7 mil
Slide 19: Significant Forecasted Demand Growth
Significant Forecasted Demand Growth Demand for lithium carbonate is expected to more than triple by 2020 250,000 Base Demand Including Auto Battery Demand 200,000 Tonnes of Lithium Carbonate 150,000 100,000 50,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: FMC Lith
Slide 20: Valuation Analysis – Comparable Companies
Valuation Analysis – Comparable Companies June 7 / 10 Market Deposit NI 43-101 Company Exchange CDN $ Shares O/S Cap Type Resource Estimate Orocobre Australian $1.72 80,500,000 $138,572,700.00 Brine No Lithium Americas TSX $1.55 73,524,400 $113,962,820 Brine Yes Western Lithium TSX.V $1.06 82,800,00
Slide 21: Investment Rationale
Investment Rationale Growth Markets Demand for lithium carbonate is expected to more than triple by 2020 Potash market is also anticipated to grow as the world population rises and requires more food . Of particular interest is neighbouring country Brazil, which typically imports approximately
Slide 22: Management Team
Management Team Waldo A. Perez, Ph D. P. Geo. President, CEO, Director Dr. Perez has 24 years of academic and industry experience in mineral exploration in South America Has directed project generation for Barrick Gold Corp and IAMGold Inc., throughout South America, including Peru, Chile, Parag
Slide 23: Board of Directors
Board of Directors Constantine Karayannopoulos, BASc, MASc, P Eng Mr. Karayannopoulos is currently President , CEO, and Director of Neo Material Technologies Inc. Mr. Karayannopoulos is a Director of the Canada China Business Council and a member of the Board of Advisors to the Department of Che