Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (November 2013)
27 slides from Lithium Americas's investor presentation, November 2013
Slide 1: Lithium Americas November 2013
www.lithiumamericas.com November 2013
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation is intended to be strictly informational. Lithium Americas Corp. (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 pre
Slide 3: Key Highlights
Key Highlights Lithium industry has extremely favourable fundamentals Significant increases in demand Significant increases in price Few competitors Lithium Americas’ Cauchari-Olaroz project is ranked the 2nd best undeveloped lithium brine project in the world by independent consulting fir
Slide 4: Lithium Has Many Uses
Lithium Has Many Uses Hard Rock Production costs are historically 2 times as expensive as brine production costs Lithium Americas’ Brine Evaporation Ponds Source: Ziemann et al, 2012 4 34
Slide 5: Batteries: The Fastest Growing Application for Lithium
Batteries: The Fastest Growing Application for Lithium In the year 2000, batteries accounted for ~ 4% of lithium demand In 2013, batteries are expected to account for ~ 36% of lithium demand Demand increasing for both small format batteries (ie cell phones, laptops, digital cameras, hand held
Slide 6: Demand and Price Both Increasing Significantly
Demand and Price Both Increasing Significantly Lithium demand expected to triple by 2025 Lithium price has more than doubled over the last 10 years Current price of lithium carbonate is ~ US$6,500 per tonne Lithium Carbonate Long Term Demand Scenario Lithium Carbonate Long Term Price Scenario
Slide 7: Cauchari-Olaroz Project: Strategically Located
Cauchari-Olaroz Project: Strategically Located Project located in Argentina, the third largest lithium producer Large property package ~ 83,000 ha Close proximity to current producers (within 200km) Excellent infrastructure Natural gas pipeline 50km Paved highway Deep sea port 550km
Slide 8: Large Resource and Reserve Estimation With Significant Upside
Large Resource and Reserve Estimation With Significant Upside 3rd largest lithium brine resource in the world Long mine life Reserves allow for a 40 year mine life based on the company’s Stage 1 & Stage 2 production profile Each stage expected to produce 20,000 tonnes per annum of lithium ca
Slide 9: Project Outline
Project Outline Largest CAPEX component is pond construction Ponds expect to cover over 650 ha Portion of the infrastructure already in place (pond, wells, lab and camp) Safe ground conditions to build the project (not the case with most projects built on salt lakes) 9
Slide 10: Production Wells
Production Wells Large diameter production drilling Location of the production program complete wells completed to date Production wells yielded flow rates of between 20 and 25 litres per second (in the brine aquifer) 4 wells complete – capable of producing ~20-25% of the total lithium carbona
Slide 11: On-Site Evaporation Ponds
On-Site Evaporation Ponds The entire evaporation process is reproduced on-site in large scale ponds The ponds produce concentrated brine to feed the pilot plant Potash Concentrate 100m x 100m Pond Concentrated 45m x 14m Ponds Brine 11
Slide 12: Full Analytical Lab On-Site
Full Analytical Lab On-Site Top of the line analytical equipment allows instant measurement of all elements in the brine Lab monitored by Alex Stewart Assayers, a fully certified lab 12 12
Slide 13: Pilot Plant Fully Operational On-Site
Pilot Plant Fully Operational On-Site Pilot Plant built and operated in Canada and now assembled on- site Fully operational since July 2012 Battery grade lithium carbonate produced at pilot plant and sent to potential customers for qualification purposes 13
Slide 14: Camp
LITHIUM 14 AMERICAS
Slide 15: Agreements with Local Communities
Agreements with Local Communities Contracts in-place with the 5 aboriginal communities where the project will be built involving: First right of refusal on jobs they are qualified for Company will provide training to communities Company will sponsor a local school of business Direct invest
Slide 16: Feasibility Study Highlights for Stage 1
Feasibility Study Highlights for Stage 1 Feasibility Study plant engineering prepared by ARA WorleyParsons (+15% accuracy) Operating costs projected to be one of the lowest in the industry Potash significantly contributes to overall project economics FS Stage 1: 20,000 TPA Lithium Carbonate an
Slide 17: Project Fully Approved and Ready for Mine Construction
Project Fully Approved and Ready for Mine Construction Final Decree approving the project for construction issued in December 2012 JEMSE (Provincial Mining company) to own 8.5% of the Cauchari-Olaroz Project, significantly decreasing political risk JEMSE to contribute for their participation o
Slide 18: Market Overview
Market Overview Research Coverage Capitalization Shares Outstanding / Fully Diluted 77 M / 87 M (September 30, 2013) Share Price (as at Nov 14, 2013) $ 0.23 52 week High / Low $ 1.06 / $ 0.19 Major Shareholders Market Cap (as at Nov 14, 2013) $ 18 M Cash on hand (as at Sept 30, 2013) $ 1.7 M Geologi
Slide 19: Comparable Company Analysis
Comparable Company Analysis Orocobre vs Lithium Americas Orocobre Lithium Americas Project Fully Permitted Yes Yes Size of Reserve / Resource (tonnes in millions) - Lithium Reserves 0 2.7 - Lithium Resources 6.4 11.8 - Potash Reserves 0 8.0 - Potash Resources 19.3 35.3 Stage 1 Production Profile (
Slide 20: Strong Leadership Team
Strong Leadership Team Management Team Board of Directors W. Thomas Hodgson, MBA David D’Onofrio, CA Executive Chairman • CFO of PowerOne Capital Markets Limited • Mr. Hodgson is an independent financial consultant • Previously served as an advisor to the Chairman of Magna International, one of
Slide 21: Summary
Summary Third largest lithium brine resource and reserve in the world Fully permitted Operating costs expected to be one of the lowest in the industry Robust project financials DFS identifies Stage 1 project NPV of US$738 million (pre-tax, at 8% discount rate) Stage 2 provides significan
Slide 22: Appendix – DFS Information
LITHIUM AMERICAS Appendix — DFS Information
Slide 23: Reserve and Resource Estimation
Reserve and Resource Estimation Average Lithium Mass Cumulated Brine Volume (m³) Concentration (mg/L) Li (tonne) Li2CO3 (tonne) Proven Reserves 679 37,000 197,000 5.50 x 107 Probable Reserves 665 476,000 2,517,000 7.16 x 108 TOTAL RESERVES 666 513,000 2,714,000 7.71 x 108 Updated Measured Resource 6
Slide 24: Conservative Price Assumptions Relative to Current Market Price
Conservative Price Assumptions Relative to Current Market Price The lithium carbonate price Year Price Assumption per tonne of Lithium Carbonate (US$) assumptions were obtained High Case Base Case Low Case 2015 5,800 5,700 4,600 from SignumBOX 5,900 5,800 4,700 2016 The Company believes the 2017
Slide 25: Sensitivity Analysis for Stage 1
Sensitivity Analysis for Stage 1 Independent market studies identify 3 long term price scenarios Current battery grade Lithium Carbonate price ~ US$ 6,500 per tonne and Potash ~ US$ 580 per tonne (Brazil) Project is profitable even in low price scenario 20,000 TPA of Lithium Carbonate 40,000 T
Slide 26: Projected Operating Cost for Stage 1
Projected Operating Cost for Stage 1 Catering & Camp Services General & Administration Transportation 2% 3% Lithium Americas’ projected Lithium Carbonate 3% Maintenance cash operating costs isUS$1,876 per tonne 6% Salt Removal and Transport The Lithium Carbonate net cash operating 7% costs of US
Slide 27: Initial Capital Cost for Stage 1
Initial Capital Cost for Stage 1 Soda Ash (Li2CO3 Plant) Drilling Wells (Wells) Electric Supply and Distribution US$ 269 M for Lithium Carbonate 3% 3% (Li2CO3 Plant) 4% Freight and Customs Expenses US$ 45 M for Potash Plant 4% (Li2CO3 Plant) SX Boron Plant & Brine Storage 4% CAPEX expenditures
Lithium Americas — Investor Presentation (November 2013) on 6ix