Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Day (April 2017)
44 slides from Lithium Americas's investor day presentation, Apr 25, 2017
Slide 1: Investor and Analyst Day
INVESTOR AND ANALYST DAY APRIL 25, 2017 APRIL 2017 |
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Technical Information analyses and opinions made by management in light of their experience and perception of Scientific and technical information in this presentation about the Caucharí-Olaroz Project has historical trends, current conditions and expected future developments, a
Slide 3: Introduction and Corporate Update
INTRODUCTION AND CORPORATE UPDATE TOM HODGSON, CEO APRIL 2017 | 3
Slide 4: Lithium Americas – Who Are We?
LITHIUM AMERICAS – WHO ARE WE? Lithium Americas is an emerging low-cost lithium producer focused on a low-risk path to production • Advancing a world-class lithium project. Moving forward the permitted and construction-ready Caucharí-Olaroz lithium brine project in Argentina. Cauchari Camp Facilitie
Slide 5: Asset Portfolio
ASSET PORTFOLIO Vancouver Lithium Americas is focused on advancing its Caucharí- Olaroz project in Argentina and Lithium Nevada project Toronto in the United States Reno Lithium Americas Corp. • Publicly-traded on the Toronto Stock Exchange (TSX: LAC). • Headquartered in Vancouver, BC. Caucharí-Olar
Slide 6: Capital Structure
CAPITAL STRUCTURE Twelve Month Share Price Symbol TSX – LAC; OTCQX – LACDF Shares Outstanding1,2 428.1 million 52 Week Range C$0.44 - C$1.26 Share Price C$0.93 (April 21, 2017) Average Daily 1.5 million (3-month average) Volume Market Cap2 C$402 million Cash2 US$88 million US$205 million available D
Slide 7: 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 8: Strategic Investments by Ganfeng & Bangchak
STRATEGIC INVESTMENTS BY GANFENG & BANGCHAK In January 2017, Ganfeng Lithium and Bangchak Petroleum announced two strategic investments in Lithium Americas totaling US$286 million through a combination of debt and equity • Minimizes dilution for existing shareholders. Financing • Attractive terms to
Slide 9: Who Is Ganfeng Lithium?
WHO IS GANFENG LITHIUM? Ganfeng Lithium is China’s largest fully integrated lithium company • Established in 2000 in Jiangxi Province, China, Ganfeng Lithium • Ganfeng is vertically integrated with a 43.1% interest in the Mt. produces lithium carbonate, lithium hydroxide, lithium metals, Marion spod
Slide 10: Who Is Bangchak Petroleum?
WHO IS BANGCHAK PETROLEUM? Bangchak Petroleum is a global emerging leader in the green energy industry • Bangchak Petroleum’s core business - petroleum refining - spans procurement of crude oil from domestic and overseas sources to refining it into various standard products. • Bangchak Petroleum’s p
Slide 11: The Senior Management Team
THE SENIOR MANAGEMENT TEAM Lithium Americas has put together a highly qualified team TOM HODGSON CEO with a focus on Argentina, lithium and capital markets • Over 30 years experience in senior management. • MBA from Queen’s University in Kingston, Canada. Deep experience across management team • Ave
Slide 12: The Independent Board
THE INDEPENDENT BOARD 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, Chief Investment Officer, and Portfolio Manager at Board with diverse industry e
Slide 13: RheoMinerals Inc
RHEOMINERALS INC RheoMinerals Inc. manufactures organoclay products used in complex oil and gas exploration, animal feed, environmental, specialty chemical applications (e.g. rheology additives for coatings) and other applications. Serves global markets with products currently being shipped to custo
Slide 14: 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 15: Lithium Market Update
LITHIUM MARKET UPDATE In 2016, lithium prices rose over 300% in China, with Recent Lithium Price In China contract prices from existing producers rising to over $12,000/t LCE • Lithium demand rising rapidly as Tesla/Panasonic, Foxconn, LG Chem, BYD, CATL, Boston Power and others build new battery ca
Slide 16: Potential New Lithium Supply
POTENTIAL NEW LITHIUM SUPPLY (1) An updated feasibility study is expected in early 2017 and is modelled on an initial Caucharí-Olaroz is one of the few brine projects, using a conventional solar stage of 25,000 tpa of lithium carbonate scaleable to 50,000 tpa of lithium carbonate. See “Cautionary St
Slide 17: Highlights
HIGHLIGHTS ARGENTINA NEVADA 1 The next lithium producer from brine 2 Unlocking value in a large, clay-based resource in Nevada • Construction on track to start H1 2017 • Actively focused on innovative • Production in 2019 processes to produce lithium • 2017 DFS supports production at low-end hydroxi
Slide 18: Caucharí-Olaroz Stage 1 DFS
CAUCHARI-OLAROZ STAGE 1 DFS ALEXI ZAWADZKI, VP PROGRAMS DEVELOPMENT APRIL 2017 |
Slide 19: 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 current producers (ORE, FMC, SQM, ALB). Near excellent infrastruct
Slide 20: 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 40). • Construction staff est. at 1,200 workers. • Operations staff. Est
Slide 21: 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 scale production capacity to 50,000 tpa of battery-grade lithi
Slide 22: 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 * 1.5 million tonnes LCE at 698 mg/L Li reserves Construction capital costs $425 million (before VAT) Operating cost
Slide 23: Caucharí-Olaroz Stage 1 Opex & Capex
CAUCHARÍ-OLAROZ STAGE 1 OPEX & CAPEX Initial Capital Costs Operating Costs $425 million capital costs before VAT $2,495/t of battery grade lithium and working capital. carbonate produced All figures in US$ and on a 100% project equity basis unless otherwise noted. | T SX : LAC APRIL 2017 | 23
Slide 24: Lithium Cost Curve
LITHIUM COST CURVE 2020 Lithium Carbonate Equivalent (LCE) Production Costs $2,495/t battery-grade lithium carbonate Caucharí-Olaroz Stage 1 DFS Source: Deutsche Bank All figures in US$. | T SX : LAC APRIL 2017 | 24
Slide 25: Caucharí-Olaroz Reserve Definition
CAUCHARÍ-OLAROZ RESERVE DEFINITION Geophysics Program • Seismic, gravity, TEM and VES. • Structural and infill sediment delineation. • Basin is approx. 600 m deep (to bedrock). Drilling, Sampling and Lab Testing • 24 RC Boreholes (1,487 brine samples). • 29 Diamond Drill Boreholes (127 brine samples
Slide 26: Caucharí-Olaroz Reserve Model
CAUCHARÍ-OLAROZ RESERVE MODEL Updated Reserve Model • Numerical hydrogeologic model updated in 2017 • Improved accuracy and precision • Very conservative (100 m max drawdown, 99.9% of brine from within property boundary) | T SX : LAC APRIL 2017 | 26
Slide 27: Caucharí-Olaroz Reserve Model
CAUCHARÍ-OLAROZ RESERVE MODEL Updated Reserve Model Average Li Concentration Brine Volume (m3) (mg/L) LCE (t) Caucharí-Olaroz (100% basis) Mineral Reserves – March 2017 Proven Reserves (Years 1-5)1,2,3,4 4.93 x 107 712 187,149 Probable Reserves (Years 6-40) 1,2,3,4 3.54 x 108 695 1,311,982 Mineral R
Slide 28: Caucharí-Olaroz Exploration
CAUCHARÍ-OLAROZ EXPLORATION Caucharí Salar Hydrostratigraphic Model Drilling program underway (deeper and stepping out): • Olaroz Salar (north) - 10 new holes (7 wells) • Caucharí (deep) - 4 new holes (2 wells) | T SX : LAC APRIL 2017 | 28
Slide 29: Caucharí-Olaroz Construction Schedule
CAUCHARÍ-OLAROZ CONSTRUCTION SCHEDULE H1 2017 2018 Commence Stage 1 construction, Plant, gas pipeline, and electricity site preparation & camp construction transmission line construction 2017 2018 2019 H2 2017 2019 Pond construction Commissioning and first commences production | T SX : LAC APRIL 201
Slide 30: Caucharí-Olaroz Progress
CAUCHARÍ-OLAROZ PROGRESS | T SX : LAC APRIL 2017 | 30
Slide 31: Caucharí-Olaroz Progress
CAUCHARÍ-OLAROZ PROGRESS | T SX : LAC APRIL 2017 | 31
Slide 32: Caucharí-Olaroz Progress
CAUCHARÍ-OLAROZ PROGRESS | T SX : LAC APRIL 2017 | 32
Slide 33: Caucharí-Olaroz Progress
CAUCHARÍ-OLAROZ PROGRESS | T SX : LAC APRIL 2017 | 33
Slide 34: Lithium Nevada Introduction
LITHIUM NEVADA INTRODUCTION DR. DAVID DEAK, CTO AND PRESIDENT OF LITHIUM NEVADA APRIL 2017 |
Slide 35: Lithium Nevada Project
LITHIUM NEVADA PROJECT Advancing process flowsheet to produce lithium hydroxide from clay, at scale • 100% owned by Lithium Americas Corp. • Massive resource, USA-based, with a proven, scalable, patented process. • Originally discovered by Chevron in 1970s during a uranium exploration campaign. • Hi
Slide 36: Project History: Geology
PROJECT HISTORY: GEOLOGY • Stratified mixture of clays. • Illite-, smectite-based geominerology. • Five-zone geology structure. • Li grade range 2000 – 6000 ppm. • Overburden is feed for RheoMinerals Inc. • Current model focuses on Zone 1 area: • ~200 drill holes. • 18,500m total drill length. • Pea
Slide 37: Project History: Resource
PROJECT HISTORY: RESOURCE Stage 1 Resource • Represents <10% of deposit in 15,233 hectares claim area. | T SX : LAC APRIL 2017 | 37
Slide 38: Project History: Process
PROJECT HISTORY: PROCESS • Early bench-scale studies started in 1980s, USBM report. • 2008-2011 – Proof-of-concept. • 2014-2016 – Piloting demo: • IBUtec and K-Utec collaborations • 275 tons of ore processed • 500 kg/hr ore throughput rate • Proven, reliable, scalable • High cost, not LiOH.H2O • 201
Slide 39: Project History: Environ. & Habitat
PROJECT HISTORY: ENVIRON. & HABITAT Environmental permitting • Surveys, claims, water Sagebrush Focus Area • Protection of sage-grouse • Ongoing political development Proposed development • Habitat development program • Participate in credit-debit system • Support research efforts • Lead industry gr
Slide 40: Current Approach: Geology
CURRENT APPROACH: GEOLOGY • Demonstrate a resource will support scale: • 50 ktpa LCE • >100 ktpa LCE • Focus on Lens’ 1+ and 2 exploration • 2017-2018: • 10-20 holes • 2018-2019: • ~200 holes | T SX : LAC APRIL 2017 | 40
Slide 41: Current Approach: Engineering
CURRENT APPROACH: ENGINEERING Base case challenges • Kiln process >1000 C • Anhydrite + dolomite reagents • Li2CO3, not LiOH.H2O directly Develop and test alternative flowsheet concepts • Produce LiOH.H2O directly • Minimize mass and energy flow • Start with high-fidelity models • Test major step as
Slide 42: Current Approach: Energy
CURRENT APPROACH: ENERGY Drive toward carbon-neutral • Keep energy cost <$0.05/kWh Integrated systems approach • Optimize for minimal footprint • Minimize waste heat sinks • Leverage gravity Design for intermittency • Energy storage options • Considering: • Solar • Geothermal • Hydropower | T SX : L
Slide 43: Lithium Nevada Development Schedule
LITHIUM NEVADA DEVELOPMENT SCHEDULE Geology and Permitting 2017 2018-2019 2019-2020 2021-2022 Confirm resource scale Scale reserve estimates in Lens' Advance permitting Finalize mine permitting >50,000 tpa LCE 1+2 process plan 2017 2018 2019 2020 +2021 Engineering and Energy 2017 2018-2019 2019-2020
Slide 44: The Future Is Clear
THE FUTURE IS CLEAR CONTACT INFORMATION info@lithiumamericas.com 1100 – 355 Burrard Street Vancouver, BC V6C 2G8 Canada APRIL 2017 | Hong Kong