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Message: Jon Evans @ Benchmark Week 2021

Jon did an excellent 15-20 minute LAC corporate overview at Benchmark Week 2021 and I learned a few things for sure.  Very exciting as always for LAC.  My notes are listed below:

  • The convertible senior notes over-allotment allocation is expected to close tomorrow 12/8
  • Original C-O debt facility has been paid off.  New rate is 1.75% vs. prior 8.5%.  “more importantly” the security that was part of C-O debt facility has now been removed.  “LAC now has full control of our assets”
  • No cases of COVID @ C-O since August of 2020
  • Jon expects C-O to ramp up to full phase 1 rates (40K TPA) sometime in 2023
  • Millennial is expected to close in early to mid-January.  LAC wants to develop this asset as soon as C-O is up and running and they get TP into construction.  Once that happens, Millennial will be right behind that.  Full details on the future of Millennial will come out post close
  • Lots of interest in Thacker Pass in the US.  TP is fully permitted for up to 60K TPA.  Phase 1 is 40K TPA and phase 2 is targeted for 80K TPA
  • The TP project will be shovel ready in the first half of 2022 once the DFS and court ruling is behind us
  • LAC expects to have a complete financing package for TP which will most likely include an equity investment by a partner.  There are several interested parties if you scan the supply chain from mining, OEM, chemical companies, traders, oil & gas; there is a lot of interest here
  • LAC is also looking into an opportunity to use unsecured Department of Energy sponsored loans to fund a portion of their costs to build TP as well as their partners portion to fund TP.  These DOE loans are unsecured, long term and have low interest rates.  The government is open to this and they could include large amounts which opens up the number of available partners
  • They restructured their C-O credit facility to have no potential barriers with DOE (China/Thailand security interest?).  The DOE loans open “really interesting alternatives for us and our strategic partner with very attractive financing options”
  • Independent geologists have looked at TP and overall, there is well over 100M tons of Li @ TP
  • LAC is building out a new pilot plant and Corporate Application Development Center that is 3x as large as the old pilot plant.  LAC will now have the entire circuit under one roof and have added the option to make LiOH as well
  • TP offers one of the only new sources of Li in North America.  Ford, GM, and their partners have committed to cathode manufacturing in the United States for the full supply chain.  They want a domestic source of Li, so the entire supply chain is here
  • What keeps Jon up at night?  It is all on execution….C-O, TP & Millennial
The convertible senior notes over-allotment allocation is expected to close tomorrow 12/8
Original C-O debt facility has been paid off. New rate is 1.75% vs. prior 8.5%. more importantly the security that
was part of C-O debt facility has now been removed. LAC now has full control of our assets
No cases of COVID @ C-O since August of 2020
Jon expects C-O to ramp up to full phase 1 rates (40K TPA) sometime in 2023
Millennial is expected to close in early to mid-January. LAC wants to develop this asset as soon as C-O is up and
running and they get TP into construction. Once that happens, Millennial will be right behind that. Full details on the
future of Millennial will come out post close
Lots of interest in Thacker Pass in the US. TP is fully permitted for up to 60K TPA. Phase 1 is 40K TPA and phase 2 is
targeted for 80K TPA.
The TP project will be shovel ready in the first half of 2022 once the DFS and court ruling is behind us.
LAC expects to have a complete financing package for TP which will most likely include an equity investment by a
partner. There are several interested parties if you scan the supply chain from mining, OEM, chemical companies,
traders, oil & gas; there is a lot of interest here
LAC is also looking into an opportunity to use unsecured Department of Energy sponsored loans to fund a portion of
their costs to build TP as well as their partners portion to fund TP. These DOE loans are unsecured, long term and
have low interest rates. The government is open to this and they could include large amounts which opens up the
available partners.
They restructured their C-O credit facility to have no potential barriers there. It opens up really interesting
alternatives for us and our strategic partner with very attractive financing
Independent geologists have looked at TP and overall, there is well over 100M tons of Li @ TP
LAC is building out a new pilot plant and Corporate Application Development Center that is 3x as large as the old pilot
plant. LAC will now have the entire circuit under one roof and have added the option to make LiOH as well
TP offers one of the only new sources of Li in North America. Ford, GM and their partners have committed to
cathode manufacturing in the United States for the full supply chain so they want a domestic source of Li so the
entire supply chain is here

What keeps me up at night? It is all on execution.C-O, TP & Millennial

 

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