- Lithium Americas (LAC) has unveiled mixed second quarter results, following a suspension at its Cauchari-Olaroz project
- The company was forced to suspend construction activities at the property due to a nation-wide quarantine in Argentine to stem the spread of COVID-19
- The company posted a net loss for the quarter of approximately $7.950 million, a slight improvement on last year’s net loss of $8.878 million
- However, the company’s cash position fell from approximately $110.780 million at the end of last year’s June quarter to approximately $65.858 million this year
- Lithium Americas (LAC) is up 6.19 per cent and is trading at C$10.20 per share
Lithium Americas (LAC) has unveiled mixed second quarter results, following a suspension at its Cauchari-Olaroz project.
The company posted a net loss of approximately C$7.950 million for the quarter, a slightly better result that the approximately $8.878 million in lost in the June quarter of 2019.
However, operational shutdowns burned a significant hole in the company’s cash reserves, endeding the quarter on approximately $65.858 million, compared to approximately $110.780 in last year’s same quarter.
Meanwhile, construction at the company’s Cauchari-Olaroz project was cut short when Argentina instituted a nation-wide mandatory two-week quarantine, to stop the spread of the coronavirus.
The company attributed the net loss to lower equity compensation and administrative expenses during the quarters coupled with a higher exchange rate and some higher than usual finance costs during the period.
President and CEO of Lithium Americas, Jon Evans said the company would remain focused on protecting its operations and communities.
He went on to say that the company was working with the province of Jujuy to ensure it could recommence construction activities within the new few weeks.
“I would like to personally thank all of our workers in Argentina for their commitment and recognise the significant contribution they continue to make to the success of the project for the benefit of all stakeholders.
“With respect to the Thacker Pass lithium project in Nevada, we continue to make significant progress with the recent release of the draft environmental impact statement by the Bureau of Land Management,” Jon stated.
Lithium Americas (LAC) is up 6.19 per cent and is trading at $10.29 per share at 12:10 pm EDT.