Lithium Americas Corp. · NYSE:LAC
Lithium Americas — Investor Presentation (May 2017)
30 slides from Lithium Americas's investor presentation, May 25, 2017
Slide 1: Investor Presentation May 2017
INVESTOR PRESENTATION MAY 2017 Caucharí-Olaroz MAYLithium 2017 Project | Jujuy, Argentina
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Technical Information historical trends, current conditions and expected future developments, as well as other factors Scientific and technical information in this presentation about the Caucharí-Olaroz Project has management believes are appropriate in the circumstances. Assump
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. Moving forward the permitted and construction-ready Caucharí-Olaroz lithium brine project in Argentina. Cauchari Camp Facilitie
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 15.0 $1.20 Shares Outstanding1,2 429.1 million Share Price (C$/sh) Volume (MM) $1.00 52 Week Range C$0.52 - C$1.26 10.0 $0.80 Share Price C$0.98 (May 25, 2017) $0.60 5.0 Average Daily $0.40 1.1 million (3-month average) Volum
Slide 6: 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 each to a seat on Lit
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 $425 million (before VAT) Operating cost
Slide 14: 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. Totals may not add due to rounding.
Slide 15: 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 MAY 2017 | 15
Slide 16: 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 17: 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 MAY 2017 | 17
Slide 18: 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 Camp Expansion Berm Ma
Slide 19: 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 20: 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 >50,000 tpa LCE 1+2 process permitting plan 2017 2018 2019 2020 +2021 Engineering and Energy 2017 2018-2019 2019-2020
Slide 21: RheoMinerals Inc
RHEOMINERALS INC RheoMinerals organoclay plant located in Fernley, Nevada and commissioned in April 2016 manufactures products used in complex oil and gas exploration, animal feed, environmental, specialty chemical applications and other applications. The growing sales serve global markets with prod
Slide 22: 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 targeted for 2019 processes to produce lithium • 2017 DFS supports production at low-e
Slide 23: Appendix
APPENDIX MAY 2017 | 23
Slide 24: The Senior Management Team
THE SENIOR MANAGEMENT TEAM Lithium Americas has put together a highly qualified team JOHN KANELLITSAS PRESIDENT with a focus on Argentina, lithium and capital markets • Over 20 years experience in finance. • MBA from UCLA and BS Mechanical Engineering Michigan Deep experience across management team
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: The Future Is Clear
THE FUTURE IS CLEAR CONTACT INFORMATION info@lithiumamericas.com 1100 – 355 Burrard Street Vancouver, BC V6C 2G8 Canada MAY 2017 | Hong Kong