Lithium Argentina Ag · NYSE:LAR
Lithium Argentina — Lithium Americas — Merger or Acquisition (January 2023)
29 slides from Lithium Argentina's merger presentation, January 2023
Slide 1: GM and Lithium Americas to Develop U.S.-Sourced Lithium Production
LithiumAmericas GM and Lithium Americas to. Develop U.S.-Sourced Lithium Production January 2023
Slide 2: Cautionary Statement
Cautionary Statement ADDITIONAL REFERENCE MATERIALS NI 43-101 DISCLOSURE This presentation should be read in conjunction with Lithium Americas Corp.’s (“Lithium Americas”, “LAC” or the Scientific and technical information in this presentation about the Thacker Pass Project has been derived “Company”
Slide 3: Transaction Highlights
Transaction Highlights LAC and GM to develop U.S.-sourced lithium production through $650 million Equity Investment and Supply Agreement(1) Industry-leading • $650 million equity investment from GM represents the largest-ever investment Transaction by an automaker in battery raw materials • Accelera
Slide 4: Transaction Summary
Transaction Summary Largest-ever investment by an automaker in battery raw materials GM Equity Investment and Binding Supply Agreement Summary Illustrative Transaction Structure Total investment of $650 million across two tranches Tranche 1 investment of $320M Tranche 1: GM to purchase 15.0 mill
Slide 5: Challenge Today: Lithium production concentrated in Australia, Chile and Argentina
Challenge Today: In 2022, 79% of the world’s production of lithium is from Australia, Chile and Argentina. Refining in China increases CO2 emissions due to the country’s reliance on coal power 4
Slide 6: Lithium supply-demand gap and price history
8.0 $90 Probable Historical Battery Grade Lithium Carbonate Price Highly Probable $80 Operating & Brownfield expansion $70 $73 6.0 Demand Supply-demand gap for lithium has $60 resulted in meaningful price increases Mt (LCE) compared to historic levels Supply gap despite: US$000s / t $50 4.0 60 new g
Slide 7: Developing America's Next Lithium Producer
Developing America’s Next Lithium Producer CANADA • ~10x the size of Silver Peak – the only project in production 16.1 (2) • Over 2x lithium grade of U.S. sedimentary resources (e.g. Clayton Valley, Tonopah, Rhyolite Ridge) • Among closest to production of development assets 8.8 Operating 6.2 Feasib
Slide 8: Thacker Pass Highlights
Thacker Pass Highlights 1 2 3 4 5 6 7
Slide 9: Respecting Our Environment
Respecting Our Environment Low Carbon Footprint Low Water Consumption Minimizing Environmental Impact with active reclamation to minimize environmental impact 8
Slide 10: Actively Engaging with Local Tribal and Community Members
Actively Engaging with Local Tribal and Community Members Community Benefits Agreement with the Fort McDermitt Paiute and Shoshone Tribe • Closest Native American tribe to Thacker Pass Direct Benefit to Local Community • Formal stakeholder engagement process with local communities • Funding a new K-
Slide 11: Demonstrated flowsheet built on commonly used mining and chemical processes
Demonstrated flowsheet built on commonly used mining and chemical processes Thacker Pass pilot plant Validated Thacker Pass Producing battery-quality work completed flowsheet lithium carbonate All basic design elements (heat Replicated integrated process Producing samples to battery- and material ba
Slide 12: Thacker Pass Feasibility Study Highlights
Thacker Pass Feasibility Study Highlights Feasibility Study supports Thacker Pass as largest new source of lithium in the U.S. 80 ktpa LCE 40 years $2.3 billion $1.1 billion Phase 1 and 2 Life of Mine Phase 1 capital cost Average annual EBITDA Total Production Capacity 40 ktpa LCE $6,743 / tonne $5.
Slide 13: Proposed Thacker Pass Processing Facilities
Proposed Thacker Pass Processing Facilities 12
Slide 14: Bechtel EPCM project team experience
– 20+ years of experience – 20+ years of experience in resource – 25 years of developing and executing – Trusted industry-leading firm that has built development and construction industrial and mining projects more than 25,000 projects for industries – Previously ran FMC’s lithium operation and gove
Slide 15: Project team names and experience
Years of Name Title Experience Brief Experience Richard Gerspacher Global Head Projects 25+ Owner / Contractor – Mega project specialist: South America / Australia / Africa Nasser Fahmy Senior Project Director 35+ Owner – Marathon, Conoco, GNL Quebec; Contractor – Chiyoda, Foster Wheeler David Weine
Slide 16: Thacker Pass Construction Timeline and Capital Costs
Thacker Pass Construction Timeline and Capital Costs 2007-2022 2023 2024 2025 2026 2027 2028 2029 2030 Defined resource – largest in the U.S. Phase 1 Baseline studies for NEPA and final EIS Phase 1 Construction(1) First Production 40,000 tpa released Record of Decision (ROD) issued All permi
Slide 17: Summary
Summary GM Transaction • GM and Lithium Americas to jointly develop U.S.-sourced lithium production • $650 million equity investment from GM accelerates Thacker Pass development • Strategically aligned and committed to onshoring domestic lithium and strengthening the U.S. domestic battery supply cha
Slide 18: Lithium Americas 2023 – Accelerating Forward
Lithium Americas 2023 – Accelerating Forward LAC selected GM as the partner for Thacker Pass after a robust process ROD ruling to move Thacker Pass into construction DOE loan process to support Thacker Pass funding needs Separation expected mid-year to unlock significant shareholder value Production
Slide 19: Appendix
Appendix
Slide 20: Thacker Pass, Argentina and Pastos Grandes
Thacker Pass Argentina Largest lithium resource in U.S. Thacker Pass Commissioning commenced at Caucharí-Olaroz with production The only lithium project in the expected H1 2023 (45% interest) U.S. permitted for construction Lithium production ramping up in 2023 Phase I capacity of Source for U.S.
Slide 21: Capital Structure
Capital Structure Share Price (NYSE: LAC) TSX and NYSE: LAC $45 Shares Outstanding(1) 135.0M $40 $35 52 Week Range(2) $17.58 - $40.39 $30 Share Price(2) $21.99 $25 $20 Average Daily Volume(2)(3) 3.1M $15 Market Cap(2) $3B $10 Cash, cash equivalents and short-term $5 $392M bank deposits(1) $- Jul-20
Slide 22: Thacker Pass Operating Costs
Thacker Pass Operating Costs Total Operating Costs(1)(2) Lithium Process Plant Breakdown Lithium Process Plant Fuel (non-mining) 46% 1% Mine $6,743 per Net Power Raw Materials Imported 15% tonne lithium (including 11% carbonate Logistics) $3,088 per G&A 63% tonne lithium carbonate Maintenance 3% and
Slide 23: Li2CO3 Produced and Ore Mined and Processed
Phase 1 and Phase 2 total design capacity of 80,000 tpa 40-year Mine Life(1)(2) Avg. annual production ~67 ktpa Li2Co3 30,000 120,000 Years 1-25 (1)(2) Avg. annual production ~70 ktpa Li2Co3 25,000 100,000 Ore Mined and Processed (1,000s tonnes) 20,000 80,000 Li2CO3 Produced (tonnes) 15,000 60,000 1
Slide 24: IRMA Ready Standard self-assessment
• Piloted Thacker Pass against the draft Standard for Responsible Mineral Exploration and Development (IRMA Ready Standard): Stage 5 Development • Completed self-assessment framework and ~120 consultation questions - According to the company’s self-assessment, scores were highest in the following ch
Slide 25: Planning for Closure Before Starting
Planning for Closure Before Starting Year 5 18,600 acres surveyed 10 years to collect environmental, land and cultural data for baseline environmental surveys Relocated to protect Year 25 Operations located south of the Montana Mountains to avoid disturbing sensitive ecological areas Shallow pit, bl
Slide 26: Thacker Pass is the largest known lithium resource in the US
Thacker Pass is the largest known lithium resource in the US Mineral Reserve Estimate Mineral Resource Estimate As of November 2, 2022 As of November 2, 2022 Lithium Lithium Average Average Tonnage Carbonate Tonnage Carbonate Category Li Category Li (kt) Equivalent (kt) Equivalent (ppm) (ppm) (kt) (
Slide 27: End Notes
Transaction Highlights Respecting Our Environment Thacker Pass Operating Costs (1) See the Company’s news release of January 31, 2023, titled (1) Based on third-party analysis from a leading international (1) See the Company’s news release of January 31, 2023, titled “Lithium Americas Provides Gener
Slide 28: Forward-Looking Statements and Disclaimers
Forward-Looking Statements and Disclaimers FORWARD-LOOKING STATEMENTS AND INFORMATION This presentation contains “forward-looking information” within the meaning of applicable Canadian securities technology as of the date of selection of such alternative; expectations regarding continuing government
Slide 29: Forward-Looking Statements and Disclaimers
Forward-Looking Statements and Disclaimers results of exploration, development and construction activities; timely responses from governmental agencies Company is able to successfully monetize any increase in off-take from any increased development plan; the responsible for reviewing and considering
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