Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (July 2017)
26 slides from Lithium Americas's investor presentation, Jul 18, 2017
Slide 1: Investor Presentation July 2017
INVESTOR PRESENTATION JULY 2017 Caucharí-Olaroz J ULYLithium 2017 Project | Jujuy, Argentina
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Technical Information exploration and development activities; a cordial business relationship between Lithium Scientific and technical information in this presentation about the Caucharí-Olaroz Project has Americas and SQM for the Caucharí-Olaroz project; Lithium America’s abili
Slide 3: 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. Focused on moving the low-cost Caucharí-Olaroz lithium brine project in Argentina to production. Cauchari Camp Facilities • Par
Slide 4: 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 5: Capital Structure
CAPITAL STRUCTURE Recent Share Price Symbol TSX – LAC; OTCQX – LACDF $1.40 $1.40 15.0 $1.20 Shares Outstanding1 435.7 million $1.20 (C$/sh) (C$/sh) Volume (MM) $1.00 52 Week Range C$0.52 - C$1.26 $1.00 10.0 Price $0.80 Share Price $0.80 C$0.92 Price (July 18, 2017) $0.60 Share $0.60 Average Daily Sh
Slide 6: 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 • Minimizes dilution for existing shareholders. Financing • Attractive terms to fund Stage 1 construction. The debt packag
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: 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 9: 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 10: 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 100 currently). • Construction staff est. over 1,000 workers. • Operatio
Slide 11: 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 12: 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 13: Caucharí-Olaroz Stage 1 Opex & Capex
CAUCHARÍ-OLAROZ STAGE 1 OPEX & CAPEX Initial Capital Costs Operating Costs Transportation G&A 5% 3% Contingenc y Labour US$55 MM Evaporation 7% Total Ponds Indirect US$129 Cost MM Maintenance Reagents US$37 MM 8% 40% Infrastructure Other US$82 MM 9% Lithium Energy Carbonate Plant 14% Pond US$121 MM
Slide 14: Lithium Cost Curve
LITHIUM COST CURVE 2020 Lithium Carbonate Equivalent (LCE) Production Costs US$2,495/t battery-grade lithium carbonate Caucharí-Olaroz Stage 1 DFS Source: Deutsche Bank estimates All figures in US$. | T SX : LAC J ULY 2017 | 14
Slide 15: Caucharí-Olaroz Construction Schedule
CAUCHARÍ-OLAROZ CONSTRUCTION SCHEDULE H1 2017 2018 Started Stage 1 Plant, gas pipeline, and electricity transmission line construction 2017 2018 2019 H2 2017 (currently) 2019 Execution of detailed engineering Commissioning and first Expansion of camp production Working on evaluation of first constru
Slide 16: Lithium Nevada Project
LITHIUM NEVADA PROJECT Advancing process flowsheet to produce lithium hydroxide from clay, at scale • 100% owned by Lithium Americas Corp. • Large-scale resource, USA-based, with a proven, patented process. • Originally discovered by Chevron in 1970s during a uranium exploration campaign. • Highly s
Slide 17: Lithium Nevada Development Schedule
LITHIUM NEVADA DEVELOPMENT SCHEDULE Geology and Permitting 2017 2018-2019 2019-2020 2021-2022 Expand boundaries of Update 43-101 compliant Permitting process Finalize mine zone 1 deposit with 15- resource size permitting hole drilling campaign plan 2017 2018 2019 2020 +2021 Engineering and Energy 20
Slide 18: Highlights
HIGHLIGHTS 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 innovative • Production on track for 2019 processes to produce lithium • 2017 DFS supports production at low-end hydroxide from cla
Slide 19: Appendix
APPENDIX J ULY 2017 | 19
Slide 20: The Senior Management Team
THE SENIOR MANAGEMENT TEAM Lithium Americas has put together a highly qualified team TOM HODGSON with a focus on Argentina, lithium and capital markets CEO • Over 30 years experience in senior management. • MBA from Queen’s University in Kingston, Canada. Deep experience across management team JOHN
Slide 21: The Board
THE 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, CIO, and PM at Geologic Resource Partners. Board with diverse industry experience • Backgrou
Slide 22: 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 23: 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 Lithium Hydroxide (>56.5%) Lithium Carbonate (>99.5%) $30,000 $12,000/t LCE • Lithium demand rising rapidly as Tesla/Panasonic, $20,000 Pri
Slide 24: Potential New Lithium Supply
POTENTIAL NEW LITHIUM SUPPLY (1) An updated feasibility study is expected in early 2017 and is modelled on Caucharí-Olaroz is one of the few brine projects, using a conventional solar an initial stage of 25,000 tpa of lithium carbonate scaleable to 50,000 tpa of evaporation process, with permits in
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 J ULY 2017 | Hong Kong