Financial Performance - The company reported a net loss of $8,009 thousand for the six months ended June 30, 2024, compared to a net income of $19,410 thousand for the same period in 2023[3]. - The consolidated net loss for the six months ended June 30, 2024, was $8,009,000, compared to a net income of $19,410,000 for the same period in 2023, indicating a significant decline in performance[5]. - The company reported a basic and diluted loss per share of $0.05 for the six months ended June 30, 2024, compared to a profit of $0.13 for the same period in 2023[3]. - The company reported a loss of $8,009 for the six months ended June 30, 2024, compared to a loss of $11,801 in the same period of 2023[78]. Assets and Liabilities - Total assets amounted to $1,046,094 thousand as of June 30, 2024, compared to $1,055,026 thousand at December 31, 2023, reflecting a decrease of about 0.9%[2]. - Current assets decreased to $112,335 thousand as of June 30, 2024, down from $133,575 thousand at December 31, 2023, representing a decline of approximately 15.9%[2]. - The company’s cash and cash equivalents decreased to $96,196 thousand as of June 30, 2024, from $122,293 thousand at December 31, 2023, a decline of about 21.4%[2]. - Shareholders' equity totaled $823,955 thousand as of June 30, 2024, down from $828,931 thousand at December 31, 2023, a decrease of approximately 0.6%[2]. - The total liabilities decreased to $222,139 thousand as of June 30, 2024, from $226,095 thousand at December 31, 2023, reflecting a decline of about 1.3%[2]. Cash Flow and Operating Activities - Cash used in operating activities of continuing operations was $9,367,000 for the first half of 2024, compared to $6,261,000 in the same period of 2023, reflecting increased operational costs[5]. - The company’s cash and cash equivalents at the end of the period were $96,196,000, down from $445,039,000 at the end of June 2023, representing a decrease of approximately 78.4%[5]. - As of June 30, 2024, the company has cash and cash equivalents of $96,196 and receivables from purchasers for lithium carbonate amounting to $12,074, to settle current liabilities of $22,329[87]. Exploration and Evaluation - Exploration and evaluation expenditures for the six months ended June 30, 2024, were $5,841 thousand, down from $8,199 thousand in the same period of 2023, indicating a reduction of approximately 28.7%[3]. - The total exploration and evaluation assets as of June 30, 2024, were $343,788,000, with additions of $696,000 during the period[44]. - Exploration and evaluation expenditures for the three months ended June 30, 2024, amounted to $2,756, down from $6,224 in the same period of 2023, representing a decrease of 55.8%[71]. Investments and Projects - The investment in the Sal de la Puna Project was valued at $180,967 thousand as of June 30, 2024, slightly down from $181,270 thousand at December 31, 2023[2]. - The company has a 44.8% ownership interest in Minera Exar, which is advancing the Cauchari-Olaroz lithium brine project, now in the commissioning and ramp-up stage[7]. - The company holds a 65% ownership interest in the Sal de la Puna Project, with an investment balance of $180,967 as of June 30, 2024[25]. - The company is entitled to 49% of the lithium carbonate offtake from Cauchari-Olaroz, amounting to approximately 19,600 tonnes per annum at full capacity[32]. Shareholder and Financing Activities - On March 5, 2024, the company announced a definitive agreement with Ganfeng for the acquisition of $70,000,000 in newly issued shares of Proyecto Pastos Grandes S.A., expected to represent a 15% interest in the project[8]. - The Company completed the Separation on October 3, 2023, transferring its North American business and $275,499 in cash to Lithium Americas (NewCo)[20]. - The fair value of net assets distributed during the Separation was $1,680,501, resulting in a gain of $1,267,552 recognized in discontinued operations for the year ended December 31, 2023[21]. Financial Risks and Commitments - The company has commitments for an annual royalty of $200,000 due in May of every year, expiring in 2041, along with other community agreements[40]. - The company limits its exposure to credit loss by placing the majority of its cash and cash equivalents with two major financial institutions and investing in short-term obligations guaranteed by the Canadian government or chartered banks[84]. - The company is exposed to foreign currency risk due to operations in countries with different currencies, primarily incurring expenditures in US dollars[89]. Management and Administrative Expenses - The total compensation for key management for the three months ended June 30, 2024, was $2,584, a decrease of 25.8% compared to $3,483 for the same period in 2023[68]. - General and administrative expenses for the six months ended June 30, 2024, totaled $7,085, a slight decrease of 4.3% from $7,402 in the same period of 2023[70]. Other Financial Information - The company recognized interest expense of $12,172 for the six months ended June 30, 2024, attributed to finance costs[50]. - The Convertible Notes accrue interest at a rate of 1.75% per annum, with interest payable semi-annually[51]. - The company recognized a deferred tax recovery of $10,659 during the six months ended June 30, 2024, due to inflation adjustments on the tax basis of Pastos Grandes assets[80].
Lithium Americas (Argentina) (LAAC) - 2024 Q2 - Quarterly Report