investor presentation -...
TRANSCRIPT
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
INVESTOR PRESENTATIONFEBRUARY 2018
Caucharí-Olaroz Lithium Project
Jujuy, Argentina
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
CAUTIONARY STATEMENT
2
Technical Information
Scientific and technical information in this presentation about the Caucharí-Olaroz Project and
the Lithium Nevada Project has been reviewed and approved by Rene LeBlanc, a qualified
person under NI 43-101. Further information about the Caucharí-Olaroz Project, including a
description of key assumptions, parameters, description of data verification and QA/QC
programs, and methods relating to resources and reserves, factors that may affect those
estimates, and details regarding development and the mine plan for the project, is available in
the NI 43-101 technical report, “Updated Feasibility Study, Reserve Estimation and Lithium
Carbonate Production at the Cauchari-Olaroz Salars, Jujuy Province, Argentina,” dated
January 15, 2018 available on SEDAR. Further information about the Lithium Nevada Project
(formerly Kings Valley project), including a description of resources thereunder and description
of data verification and QA/QC programs, is available in the NI 43-101 technical report of
Lithium Americas dated December 15, 2017 entitled “Independent Technical Report for the
Lithium Nevada Property, Nevada, USA”, available on SEDAR.
Forward-Looking Statements
This presentation contains “forward-looking information” within the meaning of applicable
Canadian securities legislation, and “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 (collectively referred to as
“forward-looking information”). All statements, other than statements of historical fact, may be
forward-looking information. Forward looking information can be identified by the use of
statements that include words such as "anticipate", "plan", "continue", "estimate", "expect",
"exceed", "may", "will", "project", "predict", “propose”, "potential", "targeting", "exploring",
“scheduled”, “implementing”, "intend", "could", "might", "should", "believe" and similar words or
expressions. Information provided in this presentation is necessarily summarized and may not
contain all available material information.
Fforward-looking information in this presentation includes, but is not limited to: timing and
results of an updated development plan at Caucharí-Olaroz to increase production capacity to
50,000 tpa of lithium carbonate; timing of results of development at Cauchari-Olaroz and the
targeted date for production to commence, the financial estimates for the Stage 1 feasibility
study, including capital and operating costs, NPV, IRR and EBITDA; estimation of mineral
resources and mineral reserves; timing and results of additional development studies on the
Lithium Nevada Project, including completing a pre-feasibility study; forecasts for future lithium
market demand and pricing, government regulation of mining operations and treatment under
government and taxation regimes.
Forward-looking information expresses, as at the date of this presentation, plans, estimates,
forecasts, projections, expectations, or beliefs of management as to future events or results. All
such forward-looking information is based on certain assumptions, estimates, expectations,
analyses and opinions made by management in light of their experience and perception of
historical trends, current conditions and expected future developments, as well as other factors
management believes are appropriate in the circumstances. Assumptions upon which such
forward-looking information is based include, without limitation: long term pricing and demand
growth for lithium products; a stable and supportive legislative and regulatory environment for
mining development in Argentina and Nevada; the impact of increasing competition; current
technological trends; constraints on the increase in supply of lithium carbonate by other
producers and potential producers; costs of development and production; anticipated results of
exploration and development activities; a cordial business relationship between Lithium
Americas and SQM for the Caucharí-Olaroz project; determination by SQM to make a
development decision at Cauchari-Olaroz; Lithium America’s ability to operate in a safe and
effective manner; and ability to obtain financing on reasonable terms results of testing and
technical analysis for processing of clay at Lithium Nevada being positive. Readers are
cautioned that the foregoing list is not exhaustive.
Lithium Americas' actual results, programs and financial position could differ materially from
those anticipated in such forward-looking information as a result of numerous factors, risks and
uncertainties, many of which are beyond Lithium Americas' control. These include, but are not
limited to: possible variations in mineral resource and reserve estimates; recovery rates; lithium
prices; changes in project parameters as plans continue to be refined; legislative changes that
impact the operations in which Lithium Americas conducts business; results of exploration
activities and development of mineral properties; interpretation of geological data; receipt and
security of mineral property titles; failure of plant, equipment or processes to operate as
anticipated; accidents; labour disputes; the inability to obtain key personnel and parts related to
operations; receipt of licenses to conduct mining activities; environmental liabilities and risks
inherent in the development and production of Lithium Americas' properties; cost overruns or
unanticipated costs and expenses; the availability of funds; disputes with joint venture partners;
currency fluctuations; general market and industry conditions; competition; and delays in
obtaining governmental and regulatory approvals, as well as those factors more fully described
under the heading “Risk Factors” in Lithium Americas’ annual information form and most
recently filed management discussion & analysis available on SEDAR. There can be no
assurance that forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such information. Accordingly,
readers are cautioned not to place undue reliance on forward-looking information. Lithium
Americas does not intend, and expressly disclaims any obligation to, update any forward-
looking information whether as a result of new information, future events or otherwise, except
as, and to the extent required by, applicable securities laws.
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
LITHIUM PRICE
In 2016, lithium prices rose around 300% in China with contract prices for existing producers rising to over US$13,000/t
3
Source: Asian Metal, Thomson Reuters
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
LITHIUM AMERICAS – RECENT ACHEIVEMENTS
4
Reno
VancouverToronto
Jujuy
FEBRUARY 2018 |
(1) Note: Much of the production infrastructure is scaleable to a production capacity of 50,000 tpa of lithium carbonate, and LAC and SQM are investigating a
development plan that contemplates such increase.
Lithium Americas is advancing world-class lithium assets
through a low-risk path to production
Partnered with SQM in 50/50 JV
• Partnered with largest lithium brine producer,
SQM, in 50/50 JV (Minera Exar) to help build and
operate the Caucharí-Olaroz lithium project.
1
Completed DFS for Cauchari-Olaroz
• Caucharí-Olaroz Stage 1 definitive feasibility study (DFS)
(25,000 tpa1) supports operating costs of US$2,495/t with
40 year project life.
Development work underway to support initial production by 2020
• Detailed engineering and construction work is underway for development of
Cauchari-Olaroz Stage 1, US$425 million capex (100% basis before VAT), to
enable targeted 2020 production.
Advanced Lithium Nevada with PFS scheduled for end of Q2 2018
• Actively advancing the Lithium Nevada project with a new, highly skilled technical
team focused on completing a pre-feasibility study (PFS) to produce lithium
compounds from claystone.
Secured US$285 million to fund Stage 1
• Ganfeng Lithium and Bangchak have provided US$285 million in equity and
credit, primarily, to fund Caucharí-Olaroz Stage 1.
2
3
4
5
Lithium Nevada
Cauchari-Olaroz
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
CAPITAL STRUCTURE
5
Symbol TSX / NYSE – LAC
Shares Outstanding1 88.5 million
52 Week Range C$3.85 - C$14.06
Share Price2 C$9.05
Average Daily
Volume3 1.1 million (30-day average)
Market Cap2 C$800 million (US$640 million)
Cash4 US$73 million
Debt4US$205 million available
(fully undrawn)
Enterprise Value2 US$570 million
Largest
Shareholders
Ganfeng Lithium – 17.0%
Bangchak (BCP) – 15.9%
Management & Directors* – 12.1%
1 Shares outstanding as of February 23, 2018.2 Calculated based on TSX closing share price on December 7, 20173 Includes TSX and NYSE.4 Cash and debt as of September 30, 2017.
Research
Coverage
Cormark Securities
National Bank Financial
Eight Capital
Canaccord Genuity
Source: Thomson Reuters, Bloomberg, Company Reports
Recent Share Price (TSX:LAC)
Lithium Americas commenced trading on NYSE under the symbol “LAC” on January 25, 2018
Adjusted for 5:1 share consolidation on November 8, 2017
* Management and Directors include 7.5% interest from Geologic Resource Partners and
exclude strategic investment by Ganfeng Lithium and Bangchak.
$0.00
$4.00
$8.00
$12.00
$16.00
Mar-16 Sep-16 Mar-17 Sep-17
Share
Price (
C$/s
h)
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
THE MANAGEMENT TEAM
Lithium Americas has assembled a highly qualified team with a focus on Argentina, lithium, engineering and capital markets
6
Tom Hodgson, CEO
John Kanellitsas, President
Gabriel Rubacha, President, South America
Alexi Zawadzki, President, North America
Eduard Epstein, CFO
David Deak, CTO / President of Lithium Nevada
Myron Manternach, EVP Finance / Corp. Dev
Ignacio Celorrio, Legal / Corp. Dev
Alec Meikle, VP, Business Development
Tom Hodgson, CEO
• 30+ years experience in senior
management roles
• Served as COO and CEO and on
the Board of Directors of several
public and private companies
Gabriel Rubacha, President, South America
• Previously Commercial Director of Techint
Engineering and Construction
• Degree in Aeronautical Engineering
• Argentine citizen
John Kanellitsas, President
• 25+ years of business
experience at prominent
investment banks and asset
management firms
• Previously CEO of LAC
Alexi Zawadzki, President, North America
• 20+ years of business experience in
energy and mining development and
construction
• Hydrologist with a Master’s degree from
Wilfrid Laurier University
FEBRUARY 2018 |TSX: LAC
NYSE: LAC7
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-class Atacama project in Chile.
Provides a lower risk development approach. SQM’s operating
expertise combines with Lithium Americas’ well-established
government and community relations in Argentina.
Governed by a shareholders’ agreement. The JV is governed
by a Shareholders’ Agreement which provides Lithium Americas
and SQM with:
I. Equal representation on Management Committee.
II. Unanimous approval requirement for budgets and timing
of expenditures.
III. The right to each buy 50% of the project’s production.
*Jujuy Energía y Minería Sociedad del Estado (JEMSE), a Jujuy
government owned company, has a right to an 8.5% interest in
the JV.
*
CAUCHARI-OLAROZ
PROJECT
FEBRUARY 2018 |TSX: LAC
NYSE: LAC8
STRATEGIC INVESTMENTS BY GANFENG & BANGCHAK
In 2017, Ganfeng Lithium and Bangchak provided a total of US$285 million to Lithium Americas through a combination of
credit and equity
Ganfeng Lithium Bangchak Total
Equity Investment US$47 million US$33 million US$80 million • LAC’s cash balance is US$73 million
Shares Issued* 15 million 10 million 25 million
• LAC’s currents shares outstanding is
88.5 million
• Ganfeng Lithium and Bangchak own
17.0% and 15.9%, respectively, of LAC
Credit Facility US$125 million US$80 million US$205 million
• 6 year credit facility from first
drawdown
• 8.0% interest (year 1-3), 8.5% (year 4),
9.0% (year 5), 9.5% (year 6)
• No prepayment penalty
Offtake (Stage 1) 80% 20% 100%• 20 year term
• Offtake for Stage 1 of Cauchari-Olaroz
at market prices
FEBRUARY 2018 |TSX: LAC
NYSE: LAC9
STRONG SUPPORT FROM ARGENTINA AND JUJUY GOVERNMENT
In 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 Exar with Argentina and Jujuy Government
- June 28, 2017
FEBRUARY 2018 |TSX: LAC
NYSE: LAC10
*
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 costs US$2,495 / t Li2CO3
Lithium carbonate price
assumptionUS$12,000/t battery-grade Li2CO3
Average EBITDA US$233 million
After-Tax Economics
US$803 million NPV10% , US$1.1 BB NPV8%
28.4% IRR
3.4 year payback
CAUCHARÍ-OLAROZ STAGE 1 FEASIBILITY STUDY
Note: The March 2017 updated feasibility study is modelled on an initial stage of 25,000 tpa of lithium carbonate; however, much of the production infrastructure is scalable to a
production capacity of 50,000 tpa of lithium carbonate and LAC and SQM are investigating a development plan that contemplates such increase.
All figures on a 100% project equity basis unless otherwise noted.
FEBRUARY 2018 |TSX: LAC
NYSE: LAC11
CAUCHARÍ-OLAROZ CONSTRUCTION SCHEDULE
H1 2017
Started Stage 1 development
2018
Plant, gas pipeline, and electricity transmission line construction
H2 2017
Execution of detailed engineeringExpansion of campDrilling campaignEarly works construction
2020
Commissioning and first production
2018 20192017
Waste Brine Reception Construction Testing Pond Liner Pond Testing
FEBRUARY 2018 |TSX: LAC
NYSE: LAC12
LITHIUM NEVADA PROJECT
Advancing a scalable process to produce lithium
hydroxide from lithium-bearing claystone.
• 100% owned by Lithium Americas Corp.
• Conducting an exploration program with the objective of
expanding and upgrading the existing large and high-grade
NI 43-101 compliant resource.
• Modern infrastructure
• Located near the mining town of Winnemucca
• Adjacent to paved highway
• Access to Nevada labour market
• Wide-ranging energy sourcing options
• Assembled a strong technical team with experience in the
lithium industry, project engineering and geology.
• Examining future strategic partnership/financing alternatives to
collaborate and develop the Lithium Nevada Project.
• Engaged WorleyParsons to complete a NI 43-101 Preliminary
Feasibility Study (PFS) by the end of Q2 2018.
FEBRUARY 2018 |
FEBRUARY 2018 |TSX: LAC
NYSE: LAC13
LITHIUM NEVADA DEVELOPMENT SCHEDULE
Q4 2017
Complete 2017 exploration program
Q2 2018
Complete PFS (including reserve estimate)
Q1 2018
Finalize process testing
Initiate baseline environmental surveys
H2 2018
Advance permitting processCommence detailed engineering
2018 20192017
Drilling Project Site Process Testing
FEBRUARY 2018 |TSX: LAC
NYSE: LAC14
SUMMARY
The next lithium producer from
brine
• Development work in support of 2020
production start
• 2017 DFS supports production at low-
end of cost curve (<US$2,500/t)
Following a low-risk development
approach
• Partnered with the largest lithium
producer from brine, SQM
1
3 Experienced team focused on
maximizing long-term
shareholder value
• Assembled talented technical and
financial team with lithium and
capital markets experience
4
Unlocking value in a large,
clay-based resource in Nevada
• Pursuing mine plan to produce
lithium from claystone
• PFS targeted for Q2 2018
2ARGENTINA NEVADA
RISK STRATEGY TEAM
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
THE BOARD OF DIRECTORS
Lithium Americas focus is on a low risk strategy to reach
production and maximize shareholder value
Board with diverse industry experience
• Background in mining, accounting and construction.
• Argentine directors – Gabriel Rubacha and Franco Mignacco -
provide strong local connections.
Pursuing a low-risk approach to development
• Partnered with SQM in a 50/50 JV to leverage SQM’s operating
expertise in brines.
• Strong JV agreement in place to reduce Lithium Americas’
financing and development risk.
Closely aligned with shareholders
• Management and board, including Ganfeng Lithium and
Bangchak, control approximately 46.0% of Lithium Americas’
common shares.
16
GEORGE IRELAND
CHAIRMAN OF THE BOARD
• 35 years of experience in the resource sectors.
• Founder, CIO, and PM at Geologic Resource Partners.
WANG XIAOSHEN
• Vice Chairman and EVP of Ganfeng Lithium.
• MBA from China Europe International Business.
CHAIWAT KOVAVISARACH
• President and CEO of Bangchak.
• MBA from Thammasat University, Thailand.
FRANCO MIGNACCO
• President of Minera Exar based in Jujuy, Argentina.
• MBA from San Andres University, Buenos Aires, Argentina.
JONATHAN EVANS
• Former VP and GM for the Lithium division at FMC.
• MBA from Rensselaer Polytechnic Institute.
GARY COHN
• Former in-house legal counsel for Magna International.
• MBA for York University, J.D. from Osgoode Hall Law School.
JEAN FRASER
• Partner at Osler, Hoskin & Harcourt LLP.
• BSc. and J.D. from University of Toronto.
TOM HODGSON, JOHN KANELLITSAS AND GABRIEL RUBACCHA
(See “The Management Team”)
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
ARGENTINA’S TURN AROUND
Improved business conditions with President Macri
• Abolished export duties and trade controls.
• Eliminated exchange rate and capital controls.
• Settled outstanding claims from 2003 default.
• Fast-track process to join the Organization for Economic
Cooperation and Development.
Argentina increasing support for mining investments
• Improving mining jurisdiction e.g., Cerro Negro, etc.
• Removed 5-10% export duty on commodities (including
lithium).
Tax amnesty program to invest in infrastructure
• Program to attract an estimated US$500 billion.
• Launched Renewable Energy Plan that is expected to attract
US$15 billion in investment.
2017 midterm election reaffirm Macri’s agenda
• Macri’s “Let’s Change” coalition won top five population
centers in the October 2017 mid-term election.
17
Mauricio Macri
President of Argentina
Week 1
Abolishes key export duties
and import controls
April 2016
Settles claims from 2003
default and completes
oversubscribed debt raise
Week 2
Eliminates exchange rate
and capital controls
December 2015
President Macri and new
government takes office
February 2017
President Macri approval rating
reaches a six month highJune 2017
Argentina issues $2.75 billion in 100-
year bonds
Source: Bloomberg
October 2017
Midterm election sees increased
representation for Macri’s coalition
FEBRUARY 2018 |TSX: LAC
NYSE: LAC18
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 existing producers (ORE, FMC, SQM,
ALB).
Near excellent infrastructure
• Natural gas pipeline - 50 km.
• Paved highway – 300 km to SQM’s Atacama project.
• Deep sea port - 550 km.
• Access to fresh water.
FEBRUARY 2018 |
FEBRUARY 2018 |TSX: LAC
NYSE: LAC19
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.
• Construction staff est. over 1,000 workers.
• Over 400 employees and contractors in Argentina.
Support from Argentine government
• Permitted for construction and operation under 2012 EIS
(updated in October 2017).
Advancing development underway
• Execution of detailed engineering.
• Expansion of camp.
• Accepting construction packages.
• Drilling campaign.
10 km
FEBRUARY 2018 |
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
CAUCHARÍ-OLAROZ CONVENTIONAL PROCESS
20
Pump lithium brine
from the salar
Use solar evaporation to
concentrate lithium brine in
shallow ponds
Process
concentrated
lithium brine in a
plant
Ship lithium
carbonate
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 be scaleable to a production capacity of 50,000 tpa of battery-grade lithium carbonate1.
Note: The March 2017 updated feasibility study is modelled on an initial stage of 25,000 tpa of lithium carbonate; however, much of the production infrastructure is scalable to a
production capacity of 50,000 tpa of lithium carbonate and LAC and SQM are investigating a development plan that contemplates such increase.
All figures on a 100% project equity basis unless otherwise noted.
FEBRUARY 2018 |TSX: LAC
NYSE: LAC21
CAUCHARÍ-OLAROZ STAGE 1 OPEX & CAPEX
Initial Capital Costs Operating Costs
US$2,495/t of battery grade lithium
carbonate produced
US$425 million capital costs before
VAT and working capital.
All figures on a 100% project equity basis unless otherwise noted. Totals may not add due to rounding.
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
LITHIUM RESOURCE AND RESERVE SUMMARY
22
Li Grade (%) Li Cut-off (%) LCE (t)
Lithium Nevada
Zone I – May 2016
Measured Resources 0.31 0.20 843,000
Indicated Resources 0.29 0.20 2,489,000
Inferred Resources 0.29 0.20 1,954,000
Zone II – May 2010
Indicated Resources 0.27 0.20 1,365,000
Inferred Resources 0.26 0.20 650,000
1. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all of any part of the mineral resource will be
converted to mineral reserves.
2. The values in the tables above are expressed as total contained metals.
3. The 0.20% Li cut-off grade for Zone 1 and Zone 2 was determined on the basis of different economic assumptions, as further described in the technical report.
4. A potassium and sodium resource are also reported.
1. Ratios of lithium to other metals include: K:Li of 8.2, Mg:Li of 2.4, B:Li of 1.6, SO4:Li of 28.5.
2. LCE is calculated based the following conversion factor: Mass of LCE = 5.323 x Mass of lithium metal
3. The conversion is direct and does not account for estimated processing losses.
4. The values in the columns on Lithium Metal and Lithium Carbonate Equivalent above are expressed as total contained metals.
5. Mineral Resources have a cut-off grade of 354 mg/L of lithium.
6. Mineral Resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all of any part of the mineral resource will be
converted to mineral reserves.
Brine Volume (m3)
Average Li Concentration
(mg/L) Lithium Metal (t) LCE (t)
Caucharí-Olaroz (100% basis)
Mineral Reserves – March 2017
Proven Reserves (Years 1-5)1,2,3,4 4.9 x 107 712 35,159 187,149
Probable Reserves (Years 6-40) 1,2,3,4 3.5 x 108 695 246,474 1,311,982
Mineral Resources – July 2012
Measured Resources2,3,4,5,6 9.1 x 108 630 576,000 3,039,000
Indicated Resources2,3,4,5,6 2.9 x 109 570 1,650,000 8,713,000
FEBRUARY 2018 |TSX: LAC
NYSE: LAC
THE FUTURE IS CLEAR
Hong Kong
CONTACT INFORMATION
1100 – 355 Burrard Street
Vancouver, BC V6C 2G8
Canada