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You've got a keen eye for logistics, Jet!
I concur with your point and am beginning to think that it's not so much a matter of "if" a deal with Tesla is announced, but "when"!!
GLTA and regards, G8tr
Cool article, Jet! And, with all those ...
heavy vehicles going electric across the board (buses, pickups, mail vehicles, UPS vehicles, semi trucks), it's going to take a lot of Li. Hey Tesla in Nevada, and Thor in LA, -- who ya gonna call for your battery grade Li fix?? Your friendly neighborhood Li supplier (soon to be the biggest in the USA) -- LAC!!!!
GLTA and regards, G8tr
What's not to like there, Jet? Great article!
LAC's Thacker Pass project is going to be very profitable, producing a lot of Li cheaply and quickly (the best of both worlds) and featuring:
* less than 24 hour process to obtain battery grade Li (ridiculously quick production time, particularly when compared to brine process);
* 46 year operating life;
* 2 phases: first 30 tpa and then 60 tpa from an open pit mine (inexpensive, no mine shafts, no digging);
* streamlined/accelerated permitting because of POTUS prudent Executive Order deeming Li one of 35 metals critical to U.S. economy/security;
* only 21 months to completion of Phase 1, with production set for 2022; and, lest we forget:
* located a stone's throw away from our friendly, neighborhood giga-factory.
What a well-conceived operational plan! With Ganfeng and others no doubt happy to get in on providing financing, I don't see how it gets any better than this!!
GLTA and regards, G8tr
Nice posts, Jet, and nice week for LAC!
LAC UP 4.77% yesterday;
LAC UP 10.23% for the week; and
LAC UP 66.72% over the last year.
IMHO, the PFS was just the catalyst needed -- let's keep Big Mo wearing an LAC jersey and those SP targets continuing to rise.
LAC (the future No. 1 lithium producer in the USA) longgggg!!
GLTA, have a great weekend, and regards, G8tr
Very cool post, Jet!
LAC has come a long way, since I've been a shareholder and the best is yet to come!
GLTA and regards, G8tr
Don't rain on my optimism party, Jet!
Heck, the PFS even talks about LAC's plan to sell excess acid and build it's own facility for generating electricity and selling the excess to the grid.
And all the time I'm reading the PFS, I'm thinking/wondering about the reaction at our neighbor, Tesla, at the thought of a huge high quality Li supply getting up to speed and producing so quickly. This setup is right up Elon's alley.
The mind boggles.
GLTA and regards, G8tr
Given the active participation of Ganfeng,
LAC's largest investor, in the PFS, I think it's plausible that it may well become one of the "significant strategic partnership opportunities to accelerate the path to production."
The other quote I really like in the PFS is LAC's intention "to rapidly advance this scalable project to become the leading source of Li production in the USA."
LAC has been talking for some time about leveraging this PFS to secure more financing and, IMHO, that possibility is looking very good.
LAC was UP today about 3%, on higher than average volume. Again, IMHO, we're just warming up.
I still haven't had time to read ...
the PFS in detail, but, assuming Thacker Pass represents 85,000 tpa and the SQM JV represents 50,000 tpa, for a total of 135,000 tpa, and assuming a price of $12,000 per ton (as mentioned in the PFS), then that comes to gross sales of $1,600,000,000 - as in $1 Billion, 600 Million -- per annum!
Holey Moley!!
Or you could say 110,000 tpa, Jet.
60,000 tpa on the Thacker Pass Project after moving up to 50,000 tpa (two 25,000 tpa traunches) in the SQM JV.
Either way, Woo Hoooooo!!
PFS - Short Version! 3.1 Million Tons!
Lithium Americas provide results of Preliminary Feasibility Study for the Thacker Pass lithium project in Humboldt County, Nevada
6:33 AM ET, 06/21/2018 - Briefing.com
The PFS, prepared and approved by WorleyParsons Canada Inc., demonstrates a design capacity of 60,000 tonnes per annum of battery-grade lithium carbonate with initial production capacity of 30,000 tpa and increasing to 60,000 tpa. The PFS supports a proven and probable reserve estimate of 179.4 million tonnes of ore with an average grade of 3,283 parts per million lithium containing 3.1 million tonnes of lithium carbonate equivalent.
GLTA and regards, G8tr
PFS! Wow! I haven't fully considered it all
But I really like what I've seen so far!
GLTA and regards, G8tr
Lithium Americas Announces Preliminary Feasibility Study Results for the Thacker Pass Project
6:30 AM ET, 06/21/2018 - GlobeNewswire
Highlights:
Thacker Pass – Project Layout
Thacker Pass – Process Flowsheet
Large-scale lithium project in Northern Nevada. PFS demonstrates production of 60,000 tpa of battery-grade lithium carbonate (Li2CO3) to be developed in two phases.46-year mine life from low strip open-pit mine. Open-pit mine plan with proven and probable reserves of 3.1 million tonnes of lithium carbonate equivalent (LCE) at a grade of 3,283 ppm Li supporting a mine life of 46 years and a low strip ratio of 1.6:1 waste-to-ore.Collaborated with Ganfeng Lithium to develop and test process flowsheet. Flowsheet developed and tested with support from Ganfeng Lithium’s technical team and facilities to produce Li2CO3 from lithium-bearing claystone at an average recovery rate of 83% using conventional sulfuric acid leaching.Positioned at low end of the cost curve. Average life of mine (LOM) operating costs of $2,570/t of Li2CO3, net credits from sulfuric acid and electricity sales. Average LOM all-in sustaining costs, including royalties and sustaining capital costs, of $3,043/t of Li2CO3.Phase 1 capex of $581 million. Initial capital cost, including a 19% contingency, estimated at $581 million for Phase 1, and $478 million for Phase 2. At a price of $12,000/t for battery-grade Li2CO3, cashflow from Phase 1 production is forecast to fully-fund Phase 2 capital costs.After-tax IRR of 29.3% at $12,000/t Li2CO3. Average annual EBITDA of $520 million ($246 million – Phase 1), after-tax NPV of $2.6 billion (at an 8% discount rate) and after-tax IRR of 29.3% assuming a price of $12,000/t for battery-grade Li2CO3.
VANCOUVER, British Columbia, June 21, 2018 (GLOBE NEWSWIRE) -- Lithium Americas Corp. (TSX:LAC) (NYSE:LAC) ("Lithium Americas" or the "Company") is pleased to provide the results of a Preliminary Feasibility Study ("PFS") for the Thacker Pass lithium project ("Thacker Pass" or the “Project”) in Humboldt County, Nevada. Unless otherwise stated, all figures are quoted in U.S. dollars ("$") and are reported on a 100% equity project basis.
Thacker Pass is located in the McDermitt Caldera and is 100% owned by Lithium Nevada Corp. (“Lithium Nevada”), a wholly-owned subsidiary of Lithium Americas. The PFS, prepared and approved by WorleyParsons Canada Inc. (“WorleyParsons”), demonstrates a design capacity of 60,000 tonnes per annum (“tpa”) of battery-grade lithium carbonate (“Li2CO3”) with initial production capacity of 30,000 tpa (“Phase 1”) and increasing to 60,000 tpa (“Phase 2”). The PFS supports a proven and probable reserve estimate (“Mineral Reserves”) of 179.4 million tonnes of ore with an average grade of 3,283 parts per million lithium (“ppm Li”) containing 3.1 million tonnes of lithium carbonate equivalent (“LCE”).
“The strong economics demonstrated by the PFS clearly support the commercial potential for this large, high-grade clay-based lithium resource,” commented Alexi Zawadzki, Lithium Americas’ President of North American Operations. “With the experience of our team and leveraging our strong partner relationships, we plan to rapidly advance this scalable project to become the leading source of lithium production in the USA.”
“Thacker Pass is an important complement to our Cauchari-Olaroz lithium joint venture currently under construction in Jujuy, Argentina. The PFS reflects the substantial synergies and value realized from leveraging the talent and operating expertise of our largest shareholder, Ganfeng Lithium,” commented Tom Hodgson, CEO of Lithium Americas. “As a large U.S.-based lithium project with strong economics, we expect Thacker Pass to attract significant strategic partnership opportunities to accelerate the path to production.”
A summary of the results of the Thacker Pass PFS are provided in Table 1:
Table 1: Thacker Pass - PFS Results
Lithium carbonate price$12,000/t Li2CO3Mining methodContinuous open-pit miningAnnual production capacity60,000 tpa Li2CO3 (Phase 1 - 30,000 tpa)Mineral reserves3.1 million tonnes of LCE at 3,283 ppm LiMine life46 yearsStrip ratio (waste-to-ore mined)Pit depth (max)1.6:1120 mInitial capital costs$1,059 million (Phase 1 - $581 million)Operating costs (average LOM)$2,570/t Li2CO3 ($4,088/t before by-product credits)EBITDA (average annual)$520 million (Phase 1 - $246 million)NPV (8% discount, pre-tax)$3.9 billionNPV (8% discount, after-tax)$2.6 billionIRR (pre-tax)36.6%IRR (after-tax)29.3%
Project Details
The Thacker Pass Project is located in Humboldt County in northern Nevada, USA. The Project is situated at the southern end of the McDermitt Caldera, approximately 100 km northwest of Winnemucca, 33 km northwest of Orovada and 33 km due south of the Oregon border. The Project is accessible via a paved highway with good regional infrastructure including power and rail. Northern Nevada is recognized as one of the most concentrated areas in the world for skilled mining labor.
The Project has been designed to avoid environmentally sensitive and rugged terrain, which is expected to reduce permitting timelines, construction risk and costs. The plant and tailings facilities are in the low-lying area of Thacker Pass and immediately adjacent to the pit, which houses the Thacker Pass deposit, the largest and highest-grade known sedimentary lithium deposit in the USA. The flat and expansive terrain allows for a very compact footprint and allows for future potential expansions.
The PFS contemplates initial Phase 1 production capacity of 30,000 tpa of battery-grade Li2CO3 commencing in 2022 and increasing in Phase 2 to 60,000 tpa in 2026. The Project will be developed as an open-pit mining operation using conventional continuous mining equipment. Given the soft nature of the deposit, minimal blasting and crushing is anticipated. The ore will then be processed in a leaching circuit using sulfuric acid to liberate the lithium from the claystone. Following the leaching process, the lithium bearing solution will be purified using crystallizers and reagents to produce battery-grade Li2CO3.
With the reliance on sulfuric acid, the Project will involve the construction of a 5,280 tonnes per day (“tpd”) (2,640 tpd – Phase 1) conventional sulfuric acid plant at site. The sulfuric acid plant will convert molten sulfur into low-cost sulfuric acid reducing transportation costs and providing a low-cost source of power. Excess acid will be sold locally to large consumers in the region. In addition, the sulfuric acid plant contemplates a co-generation facility, providing enough carbon-free electricity to power the entire Project with excess power being sold to the grid.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/f9694a83-dba3-4745-8570-209dda53f46e
Mining
The mining operation for the Project is planned as a simple and low-cost open-pit mine using a small fleet of surface miners. Given the soft nature of the claystone, minimal blasting is anticipated and will be limited to areas in the deposit with basalt formations. The mine plan includes excavating highest-grade and lowest strip ore in the early years of production; however, ore grades do not fluctuate substantially throughout the life of mine (“LOM”). The ore body begins at or near surface, with the maximum depth of the pit reaching 120 m. The average ore mining rate is 7,296 tpd for Phase 1 and 13,062 tpd for Phase 2.
The mine plan contemplates mining of 509.8 million tonnes of material consisting of 330.4 million tonnes of waste rock and 179.4 million tonnes of ore (delivered to plant) over a 46-year mine life. The average strip ratio for the Project is 1.6:1 waste-to-ore mined with an average strip ratio of 1.5:1 during the first four years of the mine plan. In-pit waste backfill will total 285 million tonnes, with only 2.2 million tonnes being transferred by truck to a nearby waste rock dump. Waste rock is also used as fill for project infrastructure. The average grade of the ore is 3,283 ppm Li.
The tonnes, grades, and classification of the Mineral Reserves captured within the PFS mine plan are summarized in Table 2.
Table 2: Thacker Pass - Mineral Reserves
CategoryTonnage (000 t) Avg. Lithium (ppm)Lithium Metal (000 t)LCE(000 t)Proven133,9443,3084432,358Probable45,4783,210146777Proven and Probable179,4223,2835893,135
Notes:
1. Mineral Reserves are defined at the point where the ore is delivered to the processing plant. Reductions attributed to plant losses have not been included.2. Mineral Reserves are presented at a 2,500 ppm Li cut-off grade.3. The conversion factor for lithium metal (100%) to LCE is 5.323.4. Applied density for the ore is 1.79.
Collaboration with Ganfeng Lithium
Metallurgical testwork for the PFS was carried out at production facilities owned and operated by Jiangxi Ganfeng Lithium Co.,Ltd. (“Ganfeng Lithium”) in Jiangxi Province, China. The process testwork benefited from a close collaboration between Ganfeng Lithium and Lithium Americas’ respective technical teams.
Lithium Americas provided four statistically representative composites of ore from the deposit that characterize the different grades of ore exposed by drilling in the proposed pit area. These samples were based on the mass weighted average of the deposit and were assembled from different depths and locations to ensure a representative testing campaign.
The initial process flow sheet concept was developed by Lithium Americas. The test program was developed with Ganfeng Lithium’s engineering and technical teams. Much of the process test work was carried out by Ganfeng Lithium and complimented Lithium Americas test work on ore preparation, tailings handling and storage design. Results from this testing were incorporated to the process flow sheet using the industry-standard Aspen chemical process model. A final bench-scale confirmation test was completed at Ganfeng Lithium’s facilities. The process engineering and design for the process plants and infrastructure were based on the results of the test work, as well as Aspen process model results.
Lithium Americas and Ganfeng Lithium intend to collaborate further on the development of the pilot plant testing programs for Thacker Pass. Ganfeng Lithium’s existing facilities provide an accelerated and low-cost opportunity to demonstrate the process technology at a commercial scale.
Processing
The production process is designed to use conventional and commonly-available equipment, arranged to take advantage of the distinctive qualities of the high-grade ore. The process comprises a series of steps to concentrate, separate and produce battery-grade Li2CO3.
First, ore from the mine will be crushed, screened and then transferred as a slurry to the leaching circuit where sulfuric acid will be added to attack the ore and liberate the lithium from the clay. The high-grade quality of the ore allows for leaching to occur in stirred reactors (vats), specifically designed to maximize speed and efficiency of lithium dissolution, while minimizing sulfuric acid consumption. Total leaching time is estimated at three hours.
The resulting lithium-bearing solution will then go through a pH-neutralization step. Neutralization will be achieved with ground limestone during start-up and sustained with recycled alkaline solids from an upstream precipitation process during normal operation. Next, the lithium solution will undergo a crystallization step using steam and electricity from the sulfuric acid production process. Water is removed for recycling, and magnesium sulfate (Epsom salt) is produced. Any magnesium remaining in solution is removed in a second step that involves the addition of reagents to precipitate magnesium hydroxide.
Finally, soda ash will be added to the lithium bearing solution to produce a high-quality, battery-grade Li2CO3. Much of the water contained in the lithium solution will be recovered and returned to the process. The total time projected to manufacture battery-grade Li2CO3 from the ore is less than 24 hours. The overall recovery of lithium from the ore is 83%.
Waste from the process will be separated into three distinct streams: clay tailings, magnesium sulfate and sodium/potassium sulfate. Separation of these streams allows for potential future processing and sale of these salts. Tailings and salt storage facilities are located adjacent to the plant.
A diagram illustrating the process flowsheet is shown in Figure 2.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a541e8a5-443c-49d4-b206-8323fc9da379
Sulfuric Acid Plant
The price of sulfuric acid is a major factor in the economics demonstrated by the PFS. The price of sulfuric acid has fluctuated from a low of $30/t to a high of $200/t over the past 15 years. The on-site production of sulfuric acid will create value for the Project in three ways, by: (i) reducing transportation costs - one part molten sulfur will make three parts sulfuric acid; (ii) producing steam and electricity; and (iii) generating revenue through sale of excess acid and electricity to the market.
Supplies of molten sulfur, the feedstock for a sulfur-burning sulfuric acid plant, are available as a reliable by-product from numerous chemical processing locations throughout the western USA. In 2017, approximately 9 million tonnes of sulfur were produced in the USA with 46% produced in the Rocky Mountain and West Coast regions. The main benchmark price in the molten sulfur domestic market, the Tampa quarterly price, has remained relatively stable since 2016 and is expected to remain $66 - $97/t (delivered) through 2023.
Modern acid plants represent a clean technology and have been recently permitted throughout the United States. Soda ash, already available in large quantity at the plant site for Li2CO3 production, will be used in a tail gas scrubber arrangement to reduce sulfur dioxide emissions well below the US EPA Prevention of Significant Deterioration (“PSD”) limit of 90 tpa.
Thacker Pass Phased Expansion
The Thacker Pass PFS entails the design of a production facility reaching a capacity of 60,000 tpa Li2CO3, through two 30,000 tpa Li2CO3 construction phases. The production capacity was selected based on anticipated market demand. Although not contemplated in the PFS, Phase 2 may be re-designed to increase production capacity, based on market conditions.
Phase 1 construction is targeted to commence in 2020 with lithium production beginning in 2022. Reagent and product transport in Phase 1 is serviced entirely by trucks via the existing paved State highway network adjacent to the plant.
Phase 2 construction is projected to start in 2025, with added production entering the market by 2026. Capital costs for Phase 2 are estimated at $478 million. Additional infrastructure in Phase 2 includes (i) doubling the sulfuric acid capacity by building a second acid plant, (ii) increasing capacity in ore preparation, leaching, filtration, crystallization, and reagent storage, and (iii) construction of a rail line with service directly to the plant.
Phase 2 includes the construction of a 93 km rail line that interconnects the plant with a Union Pacific main line (“UP Line”) near Winnemucca. The proposed rail route alignment involves minimal cut-fill balancing due to near-flat topography, resulting in a low cost of construction. The rail line streamlines the transportation of reagents and products, reduces operational costs and allows for significant future plant expansions. The UP Line is connected to existing facilities producing soda ash (Wyoming), limestone (Nevada) and molten sulfur (various locations). The capital cost ($105 million) and operating cost of the rail line are included in the PFS; however, there is the potential to assign responsibility for construction and operation of the railway to a third-party rail operator.
Credits from Sulfuric Acid and Electricity Sales
The only by-products from Li2CO3 production contemplated in the PFS are excess sulfuric acid and electricity. The distribution of gross revenue between Li2CO3 and by-products are presented in Table 3.
A "captive" co-generation sulfur-burning acid plant, with an on-site turbine waste-heat electric power generating unit, would reduce sulfuric acid and electricity costs. It is estimated that the 2,640 tpd acid plant proposed for Phase I will generate 35 MW of electricity. In Phase II, a second 2,640 tpd sulfuric acid plant, supplemented with additional heat recovery equipment, would produce an estimated total electrical output of 80 MW. Depending on pricing for electricity sales and consumption needs, the Project may sell all electricity produced, or only the excess produced when the Project’s electrical power requirements are satisfied. The PFS considers selling all electricity produced by the co-generation facility at 0.0756 $/kWh and purchasing power from the grid at 0.0632 $/kWh. This carbon-free firm electricity is a premium, in-demand product that can stabilize intermittent renewable energy production.
The design capacity of the sulfuric acid plants in Phase 1 and Phase 2 facilitate the sale of excess acid, which can be sold and distributed to regional manufacturers and mining customers. The credits from electricity and excess acid sales result in a LOM production cost of sulfuric acid of $8.23/t H2SO4 (based on 100% concentration) or $262/t LCE using sulfur at $146/t (delivered) as the base case.
Table 3: Thacker Pass - Distribution of Gross Revenue
Phase 1Average Annual RevenuePhase 2Average Annual RevenueLife of MineTotal RevenueCategory($ millions)(%)($ millions)(%)($ millions)(%)Lithium carbonate$36890.4%$70588.7%$31,23388.8%Electricity$215.0%$486.1%$2,1186.0%Sulfuric acid$184.6%$415.2%$1,8335.2%Total$407100.0%$794100.0%$35,185100.0%
Capital Costs
The capital cost estimates are based on quotes for current labor and materials costs. The Phase 1 construction capital cost are estimated at $581 million inclusive of a 19% contingency. Construction and commissioning are expected to take approximately 21 months, with production expected to commence in 2022, subject to receiving final permits. At a price of $12,000/t Li2CO3, cashflow from Phase 1 is expected to fully-fund the capital costs of Phase 2. Detailed capital cost estimates are presented in Table 4.
Table 4: Thacker Pass - Capital Costs
CategoryPhase 1Capital Costs($ millions)Phase 2Capital Costs($ millions)TotalCapital Costs($ millions)Direct Costs Lithium carbonate plant$218$96$314Sulfuric acid plant$134$158$293Mine$46$1$47Railroad and yards$3$81$84Total Direct Cost$401$336$737Total Indirect Cost$89$65$154Contingency (18.8%)$91$77$168Total Capital Costs$581$478$1,059
Operating Costs
The operating costs are based on an operation achieving average annual production of approximately 30,000 tpa and rising to 60,000 tpa of battery-grade Li2CO3. The estimated average operating cost for the mine, and processing facilities are as follows:
Table 5: Thacker Pass - Operating Costs
CategoryOperating Cost ($/t Li2CO3)% of TotalMining$48812.0%Lithium processing$1,64940.0%Sulfuric acid plant$1,78044.0%General and administrative$1563.6%Electricity delivery (wheeling charge)$150.4%Total Operating Costs$4,088100.0%
Project Economics
The financial results are derived from inputs based on an annual production schedule included in the Thacker Pass PFS. A sensitivity analysis on the unlevered economic results over a 46-year operating period are summarized in Table 6 and reported on a 100% equity project basis.
Table 6: Thacker Pass - After-Tax NPV and IRR Sensitivity Analysis
Discount RateLow Case NPVBase Case NPVHigh Case NPV(%)$10,000/t Li2CO3($ millions)$12,000/t Li2CO3 ($ millions)$14,000/t Li2CO3 ($ millions)6%$2,790 $3,800 $4,811 8%$1,856 $2,591 $3,327 10%$1,259 $1,816 $2,373 IRR (%) 24.0% 29.3% 34.3%
The Project is subject to a 1.75% royalty on net revenue produced directly from ore. This royalty has been included in the economic model with the assumption that the Company will exercise its right under the terms of the royalty to reduce the royalty from 8.0% to 1.75% by making an upfront payment of $22 million in the first year of operations. At $12,000/t Li2CO3 the ongoing annual royalty payments will average $210/t Li2CO3 sold. The royalty is not applicable to revenues from the sale of electricity and sulfuric acid.
Community and Environment
Lithium Americas has developed a community engagement plan, recognizing that the well-being of all stakeholders is essential to the success of the Project. The Project was designed reflecting information collected during numerous stakeholder meetings, including a public open house. This approach is expected to mitigate potential concerns at the design level, and ensures the local community is included early in the development process. Future public open houses are planned as the project advances to ensure the community is fully engaged.
Economic Benefits to Nevada and USA
The Thacker Pass PFS demonstrates the Project will provide substantial economic benefits to the USA at the local, state and national levels, including:
Direct employment of at least 800 high paying jobs during the 21-month construction period (Phase 1);Direct employment of at least 292 high paying permanent positions during the 46-year operation;Several hundred indirect jobs with suppliers of products and services to support mine operations;$1.7 billion capital investment on a combined basis for both Phases 1 and 2 including sustaining capital;Payments to the federal and state governments totaling approximately $6.7 billion in the form of corporate tax over 46 years (based on a price of $12,000/t of Li2CO3);Training and skills development programs aimed at maximizing local employment in Nevada; andExpected improvement of local and regional infrastructure.
Permitting
Environmental leadership is a core value of Lithium Americas. Thacker Pass has been engineered to minimize the environmental footprint, by avoiding sensitive environmental habitat and employing the best available environmental control technologies.
Phase 1 of the project is located entirely on federal lands administered by the Bureau of Land Management (“BLM”), which will be the lead agency for issuing federal approval under the Mining Law surface management regulations and for the preparation of the Environmental Impact Statement (“EIS”). Other permits will be required from various state and federal agencies.
The process for permitting a lithium mine on federal lands in the USA is currently being reviewed as a result of Presidential Executive Order 13817, which calls for a federal strategy to ensure secure and reliable supplies of critical minerals. A critical mineral is defined as being a non-fuel mineral, with a vulnerable supply chain, that is essential to the economic or national security of the USA. Lithium is categorized as a critical mineral. The new federal strategy is expected to include streamlining of permitting and review processes to expedite production of critical minerals.
The project could benefit from an accelerated permitting procedure that supports the federal mandate to enhance domestic lithium production. For the purposes of the PFS, a construction start date of Q4 2020 was assumed. This may be revised once details of the new federal permitting process are released.
Lithium Americas began the permitting process in Q1 2018 by commencing baseline data collection. The baseline data collection process is scheduled to be substantially complete by Q4 2018. A Mine Plan of Operations is expected to be ready for submission in Q3 2018, with the EIS to be submitted to the regulators by Q3 2019. Approvals would be issued following the regulatory review of the EIS.
Next Steps and Recommendations
The Thacker Pass PFS has assumed a development timetable as follows:
Q2 2018 – Commence exploration drilling aimed to increase resource size northwest of the pit area and in the SW Basin (see Figure 1)Q3 2018 - Commence pilot testing and additional trade-off studies; advance basic engineering towards constructionQ3 2018 - Submit Mine Plan of Operation for Phase 1Q3 2019 - Submit EIS for Phase 1Q4 2020 - Receive final permits and begin construction of Phase 1Q3 2022 - Commissioning and first Phase 1 productionQ2 2025 - Federal and State approvals obtained for rail corridor and plant expansionQ2 2025 - Commence construction for Phase 2Q3 2026 - Commissioning and Phase 2 production
The Thacker Pass PFS and Lithium Americas have identified a number of areas for further consideration. These include:
Sale of an intermediate product. To improve financing flexibility, Lithium Americas is considering the production of an intermediate product with the final processing to be completed by a separate company.Production of other lithium compounds (i.e. lithium hydroxide and lithium metal). Lithium Americas will consider leveraging the plant design to manufacture lithium hydroxide (LiOH). In addition, the Company will consider the production of lithium metal from Li2CO3 produced at the plant.Lithium-ion battery recycling facility. Lithium Americas will consider leveraging the plant design for future inclusion of a lithium ion battery recycling facility.Extraction of additional critical minerals (Presidential Executive Order 13817). Lithium Americas will continue to evaluate the feasibility of extracting and processing other critical minerals within the Thacker Pass deposit currently treated as waste.Railway partnership. Lithium Americas will evaluate the potential to engage an experienced rail industry partner to build, own and operate the proposed rail spur from the UP main line to the plant.Acid plant partnership. Lithium Americas will evaluate the potential for a partnership(s) in the ownership, construction and/or operation of the acid plants. This could include a joint venture partnership or a third-party build-own-operate structure. Solar power plant. Lithium Americas will evaluate the feasibility of generating solar electricity near the plant site to increase revenue and reduce the environmental footprint of the project.
Nice Joe Lowry post, Jet.
I particularly like the following quote: "Anyone that thinks North America will not return to lithium production prominence is greatly mistaken."
Sooner the better!
GLTA and regards, G8tr
BTW, neither Mr. Buffett nor anyone else ...
could have "suffered a 6-month 50% decline" on LAC, as your chart purports to show, for two reasons.
First, in order to lose any money in the stock market, one first has to sell at a loss, thus locking in the loss. A key point you constantly ignore. Do you sell at a loss, Nowhat? Just curious, because the other day your post was telling everyone to "SELL" when LAC was down, which seems very foolish to me. I'm sure that Mr. Buffett would consider your "SELL" at a loss advice foolish too, because he most assuredly does not sell at a loss. He buys. That's because of a number of reasons, but, first and foremost, Mr. Buffett is an investor, not a trader, and operates off of DD, not charts, especially incorrect ones like yours.
And second, with respect to the incorrectness of your charts, according to Schwab, LAC is not down anywhere close to 50% in the last 6 month trading period, but rather 39.05% (in short, once again, your chart is just flat out WRONG), while being UP 47.65% in the last one year trading period (in short, once again, your chart ignores the whole picture and taken out of context, being slanted to support your anti-LAC and pro-short narrative).
But chart on; do chart on, Nowhat. It's becoming more and more amusing to see you try to make your case for superiority over the Oracle of Omaha.
GLTA, G8tr
Delusions of grandeur and denial ...
classic symptoms.
Chart on, Nowhat and GLTA!
Lol! I bought LAC all last week, Nowhat.
The only thing I'm "upset" about is that I didn't buy more on the dip, but I try not to live my life in a greedy fashion, so I'll just take today's profit (LAC UP 6.76% today) with a smile.
Something I'm sure you don't have to worry about.
If you knew anything about Buffett, Nowhat,
you'd know that he isn't a short view trader, but a long view investor, who has made a fortune based on solid DD, not self-aggrandizing charts. Somehow, I'd rather use Buffett's long term play, which has made both Jet and I a lot of money and it's only getting started, than those hokey charts of yours, which never point out anything positive and of value, but rather focus on your obvious short narrative, overlooking the facts that: 1) past performance is no guarantee of future performance; 2) no one seriously contends that you can properly chart a penny stock, which LAC still is if you go by factoring in the reverse split; 3) no one seriously contends that you can properly chart a penny stock that has never made a profit and is not producing a spoonful of Li (yet); and 4) notwithstanding all of that, LAC is still up nearly 50% in the last year.
Do yourself a favor and go back and read Jet's recent Motley Fool article recommending LAC.
What a bunch of baloney those charts you post are. But each to his own. GLTA
Great Motley Fool plug and nice post, Jet!
You "wonder why" Nowhat?
Really? How can that be? You mean your charts didn't pick this up well in advance?
I bet a lot of people know why. You just have to go back and read the DD posted for months on this board.
Nowhat, according to Navigant Research, by 2035 ...
there will be around 2 billion cars on the road worldwide.
1 in 9 of them being EVs (your prediction), comes to about 11.11%.
11.11% of 2 billion is 222,200,000 EVs on the road worldwide. So, even if you're correct (and I note that you don't list any source for your 1 out of 9 contention; I think it will be much higher given the plans of major auto manufacturers, as previously posted), THAT'S A WHOLE LOT OF EVs !!!!!
LAC longggggg!!
GLTA G8tr
OMG! Won't Bloomberg have egg on its face
... after writing "the lithium-ion battery is only just hitting its stride" and that we're at an "oh wow moment," an "inflection point" where "each year will beat the prior year," when, in fact, the entire Li sector is on the verge of collapse (according to certain "sky is falling" chart types in this room)?
Wouldn't you think Bloomberg would've reached the same conclusion as some in this room, i.e. that it won't be Li powering 21st century vehicles, but rather uranium and coal?
Go figure, huh?
GLTA and regards, G8tr
Boy, won't that Chinese company be surprised ...
when they try to produce 150,000 EVs a year in the middle of the entire Li sector collapsing? Guess they didn't read the charts in this room.
Great post, Jet!
GLTA and regards, G8tr
Gosh Jet, I go on a business trip
for a week and come back to find that, according to some, the entire Li sector is on the verge of collapse!!. But then I read the great article in your post and, y'know, somehow that much Li demand coming in just doesn't square with the sky is falling crowd's prediction. So, as you can imagine, I'm confused as to which one to follow - sky is falling based on highly questionable amateur charting - orrrrrr -- obvious inferences of an ever strengthening Li market based on solid DD. Decisions, decisions.
GLTA and Regards, G8tr
Uptrend indeed, Ks!
According to Schwab:
LAC UP 4.24% last 5 day trading period;
LAC UP 11.86% last one month trading period; and
LAC UP 61.71% last 1 year trading period.
Reminds me of a train coming out of the curves and going down the stretch while building up more steam!
Throw on some more coal, baby!!
LAC longgggg!!
Totally concur, Ks
Some folks ...
can't see the forest for the trees, Jet.
GLTA, G8tr
Great content posts, Jet.
Talk about demand for Li rising exponentially!
And who ya gonna call?
LAC longggg!!!
Your chart is disingenuous (at best), Nowhat.
I looked up your "comps" and they are so different from LAC as to not even qualify as apples and oranges (more like apples and rocks, not even the same species). Most of the other companies have nothing to do with the production of Li at all, being world class producers of other minerals. Of the other companies that have any connection to the production of Li, they are either already in production or in the advanced stages of lithium projects. LAC, on the other hand and as you well know, is not in production of anything and won't be until 2020, when it is set to produce 25,000 tpa of Li, moving up to 50,000 tpa. Obviously, that is a material difference (which you failed to point out, instead impliedly suggesting that your chart was a fair comparison between the performance of like companies, when it is clearly not)and renders your chart meaningless.
Nor did you explain in your chart, that it is only over the last 6 months, which you only belatedly admitted in response to my post. I'm wondering why you didn't use a one year period, which would have shown LAC UP over 60%, even though it has not yet produced even a spoonful of Li.
In the future, please don't try to mislead folks just because it plays into your short narrative.
GLTA and be careful about the charts you read (unless you're looking for a laugh), G8tr
Nowhat, the only stock besides LAC ...
that I recognize from the abbreviations (ticker symbols, maybe) on your chart is Orocobre. Please identify the others.
GLTA, G8tr
That was a tasty read, Jet.. good post!
A good day for LAC's JV Partner, SQM:
Canada's Nutrien auctions remaining shares in lithium miner SQM for nearly $1 bln
9:55 AM ET, 06/01/2018 - Reuters
SANTIAGO, June 1 (Reuters) - Canadian fertilizer company Nutrien auctioned its remaining stake in Chile lithium miner SQM on Friday for nearly $1 billion, the last step in meeting regulatory commitments after the company was formed in January by the merger of Agrium and Potash Corp of Saskatchewan.
The nearly 20.17 million B-series shares in SQM sold on Chile's IPSA stock exchange for 31,000 pesos ($49.05) per share.
China's Tianqi Lithium Corp last month said it would buy nearly a quarter of the lithium miner for $4.1 billion, gaining it coveted access to a key ingredient in rechargeable batteries that power mobile phones and electric cars.
SQM was UP 3.69% today and is up 14.87% for the last 3 months.
I don't know, but, IMHO, there's no reason why Tianqi wouldn't want LAC's Li production. Either way, I don't think LAC will need to look too hard for buyers for its Li production (recall the article Jet recently posted re Pilbara being completely out of Li -- nothing to sell any buyers because all of it's been spoken for with offtake agreements already in place).
It's getting very interesting.
LAC longgggggg!!! G8tr
And the beat goes on, Jet!
Great ink for LAC!
Regards and GLTA, G8tr
Great post, Jet! And so the trend continues
... to build with institutional investors finally jumping on the bandwagon. Giddyap! Gonna be a fun ride!!
Regards and GLTA, G8tr
Roger that Ks
I also thought that the bit about Fiat Chrysler (and no doubt other automakers) ditching diesel so quickly (2020) was quite telling regarding the electrification trend that just keeps building. EVs across all types of vehicles are coming faster than anyone thinks!
Regards and GLTA, G8tr
Lol, what kind of commissions ...
are you paying man? Try Schwab, it's only about $6 a trade. And if you think that a nickel a share profit is crumbs, then you must already be rich like Pelosi. To me, a thousand dollar profit here and a thousand dollar profit there, and pretty soon you're talking real money, but like I said, I don't trade LAC anymore because I've already done that, got the t-shirt, and now I want to be around for the big score, which, IMHO will be here before long, starting with hitting near term PPS predictions/milestones like the one predicted by Coremark.
As Jet likes to say, each to his own, so you follow your charts and short strategy and I'll do my thing. Good luck to you and to all.
LAC longggggg!!!!
G8tr
I'm sure you wouldn't, Nowhat, because ...
if you had purchased on the 3/19 dip at $6.16 a share and then sold 3 days later, 3/21 at $6.21 a share, you'd have made $.05 a share, which is not bad for a trader, but for an investor, IMHO, it would be a shame not buy at that PPS and then hold for at least the $13 plus PPS that Coremark and other professional analystsare predicting.
GLTA and LAC longggggg!!!!
Concur on the first point, Nowhat.
Regarding the training, nah; I only do that for money. Good luck to you and to all. G8tr
Psssstttt... Nowhat, in case you haven't noticed ...
LAC (and the Li sector in general, for that matter) tends to be somewhat volatile sometimes. Don't try to chart it too closely or you might get caught in the BOOM!!! as LAC takes off (as has already happened to you a time or two)!! Some folks never learn.
GLTA, G8tr
No "sorrows to drown" here, due partly ...
to continued good Li demand news such as the following excerpts from today's WSJ article titled:
"Fiat Chrysler Bets on Trucks, Tech"
* Fiat Chrysler Automobiles NV on Friday presented a five-year vision for the company that embraces the two biggest trends in the industry - meeting demand for SUVs and trucks and investing in future technologies such as electric-powered and self-driving cars;
* The automaker will invest 9 Billion Euros to develop and deploy electric engines as it expands its lineup of electric-powered vehicles, part of a 45 Billion Euro spending plan over the next five years focused on four core brands: Jeep SUVs, Ram pickups and Alfa Romeo and Maserati luxury cars;
* "This plan will provide the portfolio of products aligned with our brands that will ensure our ability to comply in each region" with stricter emissions and fuel-economy standars, Chief Executive, Sergio Marchionne, told financial analysts and media gathered at a company test track outside Milan;
* To meet increasingly strict emissions rules in Europe, Fiat Chrysler said it would phase out diesel vehicles there by 2021 and end sales of some mass-market Fiat cars, such as the Punto model, that aren't profitable enough to recoup the cost of electrification; and
* "All models will have a range of electric options" by 2022, said Mike Manley, head of the Jeep and Ram truck brands.
And so folks, the beat goes on ... more and more Li being needed and demanded. Who you gonna call? LAC longgggggg!!!
GLTA, G8tr
Sorry if I bruised your ego but ...
those are your words, not mine.
I'm not sure what you don't understand, Nowhat
... about my prior emails on this point, but let me try again. In plain English, I think you are grossly premature in saying that Cowart "made a bad call," or that they aren't "very good analysts" based upon Cowart's price target prediction made in January, when it is only June 1st.
Obviously there's plenty of water yet to run under the LAC bridge and likely a lot of ups and downs before the end of the year. For example, as of the end of trading today and according to Schwab:
LAC is UP 2.07%;
For the last month, LAC is UP 6.05% and
For the last year, LAC is UP 54.02%.
Somehow, to you, that shows a downtrend, but, to me, it shows just the opposite. The difference in our respective interpretations can be attributed to you dwelling on a shorter time frame (when it suits your short promoting narrative) and my using a broader perspective, longer time frame, and facts concerning LAC and the broader Li industry, which show LAC's consistent progress to becoming a 50,000 tpa Li producer and the demand for Li going through the roof. This is not rocket science, Nowhat; it's self evident.
So like I said, given the choice between your predictions and Cowart's, I'll take the latter (in fact, my only possible concern regarding Cowart's prediction is that it may be much too conservative and that LAC's PPS will easily exceed the target price of U.S. $10+ by the end of 2018. Of course, that's just my opinion, I could be wrong).
Time will tell. GLTA, G8tr