Bay Street News

Lithium Americas Reports Third Quarter 2018 Financial and Operating Results

VANCOUVER, British Columbia, Nov. 14, 2018 (GLOBE NEWSWIRE) — Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) has announced its financial and operating results for the third quarter ended September 30, 2018.

This news release should be read in conjunction with Lithium Americas’ unaudited condensed consolidated interim financial statements and management’s discussion and analysis (“MD&A”) for the nine months ended September 30, 2018, which are available on Lithium Americas’ website, SEDAR and EDGAR.

HIGHLIGHTS

Cauchari-Olaroz:

Lithium Nevada:

RheoMinerals:

Finance:

Corporate:

Financial Results:

The following selected financial information is presented in thousands of US dollars, shares in thousands, unless otherwise stated and except in relation to per share amounts

The following table summarises the key items that resulted in the decrease in net loss for the three months ended September 30, 2018 (Q3 2018) versus the three months ended September 30, 2017 (Q3 2017), as well as certain offsetting items:

           
Financial results   Quarter ended September 30,   Change  
      2018     2017        
    $   $   $  
Organoclay sales     1,420     1,059     361  
Cost of sales     (2,009 )   (1,575 )   (434 )
Exploration expenditures     (3,718 )   (1,231 )   (2,487 )
Organoclay research and development     (149 )   (110 )   (39 )
General and administrative expenses     (1,651 )   (2,762 )   1,111  
Share of loss in Joint Venture     (1 )   776     (777 )
Stock-based compensation     (938 )   (7,139 )   6,201  
Foreign exchange (loss)     (722 )   (2,347 )   1,625  
Other income     335     570     (235 )
Net Loss     (7,433 )   (12,759 )   5,326  
                     

Net loss for the three months ended September 30, 2018 was $7,433 compared to $12,759 for the three months ended September 30, 2017. Basic and diluted loss per share was $0.08 in Q3 2018 versus $0.15 in Q3 2017. 

Exploration expenditures were $3,718 in Q3 2018 versus $1,231 in Q3 2017. The increase in the exploration expenditures is mostly due to advancing the Thacker Pass project.

The Company’s share of the Minera Exar joint venture losses in Q3 2018 was $1 compared to a gain of $776 in Q3 2017, which related to recognition of VAT and other taxes receivable by the joint venture.

General and Administrative expenses decreased in Q3 2018 to $1,651 versus $2,762 in Q3 2017 primarily due to the payment of annual bonuses in Q3 2017.

The Company recognized in Q3 2018 a foreign exchange loss of $722 (Q3 2017 – loss of $2,347) which was a result of the weakening of the US dollar against the Canadian dollar. 

Qualified Person:

The scientific and technical information in this news release has been reviewed and approved by Dr. Rene LeBlanc, a Qualified Person for purposes of NI 43-101 by virtue of his experience, education and professional association.  Mr. LeBlanc is the Chief Technical Officer of the Company and a Senior Chemical Engineering Manager at Lithium Nevada Corp., a wholly-owned subsidiary of the Company. Information on the Company’s data verification and QA / QC procedures is contained in Lithium Americas’ current technical reports for the Cauchari-Olaroz lithium project and the Thacker Pass lithium project, available at www.sedar.com.

About Lithium Americas:

Lithium Americas, together with Ganfeng Lithium, is developing the Caucharí-Olaroz lithium brine project, under construction in Jujuy, Argentina through its 62.5% interest in Minera Exar. In addition, Lithium Americas owns 100% of the Thacker Pass lithium project located in Nevada, the largest known lithium deposit in the United States. The Company trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol “LAC”. 

For further information contact:
Lithium Americas Corp.
Investor Relations
Suite 1150 – 355 Burrard Street
Vancouver, BC, V6C 2G8
Telephone: 778-656-5820
Email:    ir@lithiumamericas.com
Website: www.lithiumamericas.com

Forward-looking statements:

This news release contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) under the provisions of applicable securities legislation. Such forward-looking information is subject to various risks and uncertainties. Forward-looking information in this news release includes, but is not limited to, statements with respect to development activities, the achievement and anticipated achievement of technical and development milestones, and commencement of production at Cauchari-Olaroz, and the potential for partnership and financing scenarios for the Thacker Pass project. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information, including, but not limited to, risks and uncertainties related to whether there will ever be production at the Company’s mineral properties, geological, technical, drilling or processing problems, environmental liabilities and risks inherent in mineral extraction operations, lack of availability of additional financing, and obtaining regulatory approvals in a timely manner, or at all. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are made as of the date hereof and the Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Accordingly, readers are cautioned not to place undue reliance on forward-looking information.