Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (November 2017)
26 slides from Lithium Americas's investor presentation, Nov 9, 2017
Slide 1: Investor Presentation November 2017
INVESTOR PRESENTATION NOVEMBER 2017 Caucharí-Olaroz N O VEMBERLithium 2 017 Project | Jujuy, Argentina
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Technical Information growth for lithium products; a stable and supportive legislative and regulatory environment for Scientific and technical information in this presentation about the Caucharí-Olaroz Project has mining development in Argentina and Nevada; the impact of increas
Slide 3: Lithium Price
LITHIUM PRICE In 2016, lithium prices rose around 300% in China, with contract prices rising to over US$13,000/t LCE China Lithium “Spot” Price (US$/tonne) Lithium Hydroxide (>56.5%) Lithium Carbonate (>99.5%) $30,000 Existing producers reporting average contract prices over US$13,000/t US$25,750 US
Slide 4: Lithium Supply Needed
LITHIUM SUPPLY NEEDED Based on announced plans by auto OEMs for EVs, the lithium market is expected to grow over 15% per year until 2025 Lithium Demand To Electrify The World’s Fleet of Vehicles By 2050 (MMt, LCE) To electrify the world’s fleet of vehicles, 4.0 production needs to average 3.1 millio
Slide 5: Lithium Americas – Recent Achievements
LITHIUM AMERICAS – RECENT ACHEIVEMENTS Lithium Americas is advancing world-class lithium assets Vancouver through a low-risk path to production Toronto Lithium Nevada Partnered with SQM at Caucharí Reno 1 • Partnered with largest lithium brine producer in 50/50 JV (Minera Exar) to help build and ope
Slide 6: Capital Structure
CAPITAL STRUCTURE Lithium Americas has applied and expects to list on the NYSE American Stock Exchange by December 2017 Recent Share Price (TSX:LAC) $12.00 Symbol TSX – LAC; OTCQX – LACDF $10.00 Shares Outstanding1 88.5 million Share Price (C$/sh) $8.00 52 Week Range C$2.60 - C$11.55 $6.00 Share Pri
Slide 7: The Management Team
THE MANAGEMENT TEAM Lithium Americas has assembled a highly qualified team with a focus on Argentina, lithium, engineering and capital markets • 30+ years experience in senior • 25+ years of business Tom Hodgson, CEO management roles experience at prominent John Kanellitsas, President investment ban
Slide 8: Caucharí-Olaroz JV with SQM
CAUCHARÍ-OLAROZ JV WITH SQM In March 2016, Lithium Americas entered a strategic 50/50 JV with SQM to develop and operate the Caucharí-Olaroz project Leverages SQM’s technical expertise. SQM is the largest producer of lithium brines with over 20 years experience operating and expanding its world-clas
Slide 9: Strategic Investments by Ganfeng & Bangchak
STRATEGIC INVESTMENTS BY GANFENG & BANGCHAK In 2017, Ganfeng Lithium and Bangchak invested a total of US$285 million in Lithium Americas through a combination of debt and equity Ganfeng Lithium Bangchak Total • LAC’s proforma cash balance is Equity Investment US$47 million US$33 million US$80 millio
Slide 10: Strong Support from Argentina and Jujuy Government
STRONG SUPPORT FROM ARGENTINA AND JUJUY GOVERNMENT In June 2017, senior executives from Lithium Americas, SQM and Minera Exar met with senior officials from Argentina and Jujuy government to reaffirm commitment to support development of Cauchari-Olaroz Meeting with SQM, Lithium Americas and Minera E
Slide 11: Caucharí-Olaroz Stage 1 Feasibility Study
CAUCHARÍ-OLAROZ STAGE 1 FEASIBILITY STUDY Stage 1 DFS Results (100% basis) March 2017 Average annual production 25,000 tpa battery-grade Li2CO3 Project life 40 years * Proven & probable reserves 1.5 million tonnes LCE at 698 mg/L Li Construction capital costs US$425 million (before VAT) Operating co
Slide 12: Caucharí-Olaroz Construction Schedule
CAUCHARÍ-OLAROZ CONSTRUCTION SCHEDULE H1 2017 2018 Started Stage 1 Plant, gas pipeline, and electricity development transmission line construction 2017 2018 2019 H2 2017 (currently) H2 2019 Execution of detailed engineering Commissioning and first Expansion of camp production Pond construction Drill
Slide 13: Lithium Nevada Project
LITHIUM NEVADA PROJECT Advancing a scalable process to produce lithium hydroxide from lithium-bearing claystone. • 100% owned by Lithium Americas Corp. • Conducting an exploration program with the objective of expanding and upgrading the existing large and high-grade NI 43-101 compliant resource. •
Slide 14: Lithium Nevada Development Schedule
LITHIUM NEVADA DEVELOPMENT SCHEDULE Drilling Project Site Process Testing Q4 2017 Q2 2018 Complete 2017 exploration Complete PFS (including reserve program estimate) 2017 2018 2019 Q1 2018 H2 2018 Finalize process testing Advance permitting process Initiate baseline Commence detailed engineering env
Slide 15: Summary
SUMMARY ARGENTINA NEVADA 1 The next lithium producer from brine 2 Unlocking value in a large, clay-based resource in Nevada • Under development • Actively focused on demonstrating • Production on schedule to start in 2019 process to produce lithium hydroxide • 2017 DFS supports production at low-end
Slide 16: Appendix
APPENDIX N O VEMBER 2 017 | 16
Slide 17: The Board of Directors
THE BOARD OF DIRECTORS Lithium Americas focus is on a low risk strategy to reach GEORGE IRELAND production and maximize shareholder value CHAIRMAN OF THE BOARD • 35 years of experience in the resource sectors. • Founder, CIO, and PM at Geologic Resource Partners. Board with diverse industry experien
Slide 18: Potential New Lithium Supply
POTENTIAL NEW LITHIUM SUPPLY Caucharí-Olaroz is one of the few projects, using a conventional process, with permits in place and funded to production Produce Initial Commercial Conv. Project Operator Location Type Financed Permits Li2CO3 / Production Production Process LiOH (000tpa LCE) Construction
Slide 19: Argentina's Turn Around
ARGENTINA’S TURN AROUND Improved business conditions with President Macri • Abolished export duties and trade controls. Mauricio Macri • Eliminated exchange rate and capital controls. President of Argentina • Settled outstanding claims from 2003 default. • Fast-track process to join the Organization
Slide 20: Caucharí-Olaroz Lithium Project
CAUCHARÍ-OLAROZ LITHIUM PROJECT Caucharí-Olaroz is located on an international highway with access to power, water, and a large local labour force Located in Jujuy, Argentina • Large property package ~ 70,000 ha. • Close proximity to existing producers (ORE, FMC, SQM, ALB). Near excellent infrastruc
Slide 21: Caucharí-Olaroz Lithium Project (Cont.)
CAUCHARÍ-OLAROZ LITHIUM PROJECT (CONT.) Working closely with local communities • Economic benefits agreements with 6 local communities. • Emphasis on local employment. • Minera Exar Jujuy and field office staff ramping up (over 140 currently). • Construction staff est. over 1,000 workers. • Operatio
Slide 22: Caucharí-Olaroz Conventional Process
CAUCHARÍ-OLAROZ CONVENTIONAL PROCESS Design by experience • SQM engineering staff developing design and execution planning. • Process is based on SQM’s +20 years experience operating in the Atacama. • Infrastructure and plant designed to be scaleable to a production capacity of 50,000 tpa of battery
Slide 23: Caucharí-Olaroz Exploration
CAUCHARÍ-OLAROZ EXPLORATION Caucharí Salar Hydrostratigraphic Model Drill program underway (deeper and stepping out): • Olaroz Salar (north) - 10 new holes (7 wells) • Caucharí (deep) - 4 new holes (2 wells) | T SX: L AC N O VEMBER 2 017 | 23
Slide 24: Caucharí-Olaroz Stage 1 Opex & Capex
CAUCHARÍ-OLAROZ STAGE 1 OPEX & CAPEX Initial Capital Costs Operating Costs Transportation G&A 5% 3% Contingency US$55 MM Labour 7% Evaporation Total Ponds Indirect Cost US$129 MM Maintenance US$37 MM 8% Reagents 40% Infrastructure Other US$82 MM 9% Lithium Carbonate Energy Plant 14% Pond US$121 MM H
Slide 25: Lithium Resource and Reserve Summary
LITHIUM RESOURCE AND RESERVE SUMMARY Average Li Concentration Brine Volume (m3) (mg/L) Lithium Metal (t) LCE (t) Caucharí-Olaroz (100% basis) Mineral Reserves – March 2017 Proven Reserves (Years 1-5)1,2,3,4 4.93 x 107 712 35,159 187,149 Probable Reserves (Years 6-40) 1,2,3,4 3.54 x 108 695 246,474 1
Slide 26: The Future Is Clear
THE FUTURE IS CLEAR CONTACT INFORMATION info@lithiumamericas.com 1100 – 355 Burrard Street Vancouver, BC V6C 2G8 Canada N O VEMBER 2 017 | Hong Kong
Lithium Americas — Investor Presentation (November 2017) on 6ix