Lithium Americas (Argentina) Corp. (TSX: LAAC) (NYSE: LAAC) has appointed a new president and chief executive officer to lead the company through unsettling industry conditions.
Sam Pigott will step into his new role on Mar. 18 after leaving his current post as Head of North American Business Development at the Chinese company Ganfeng Lithium (SHE: 002460). He became knowledgeable about Lithium Argentina’s operations through serving as the Shareholder Committee Chairman for Minera Exar.
Sam Pigott. Photo credit: LinkedIn
“As an emerging producer, Lithium Argentina is well-positioned to succeed across market cycles,” Pigott said.
Minera Exar is a joint venture partner of Lithium Argentina and Ganfeng. The companies are collectively ramping up development of the Caucharí-Olaroz lithium brine project in the Jujuy province. That project produced its first lithium carbonate last June and generated about 6,000 tonnes throughout last year.
Argentina’s mining magazine Panorama Minero named Minera Exar “Mining Company of the Year” in 2020.
“The rigorous search process has resulted in the appointment of an exceptional executive who possesses the qualities needed to properly lead Lithium Argentina,” John Kanellitsas, Executive Chairman of Lithium Argentina’s Board, said.
Pigott has about two decades of experience with lithium, the mining industry, finance and business development. He received his education at the University of Oxford where he attained a Master of Business Administration degree.
Evaporation ponds at Caucharí-Olaroz. Photo credit: Lithium Argentina
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Investors remain optimistic despite commodity’s decline
In neighbouring Chile, a major global producer currently exceeding Argentina’s lithium output, the nation’s mining minister says investors are seeing past the current price slump.
“From the contacts we’ve had in visits and lobbies we see that the interest [in the battery metal] remains,” Chilean Minister of Mining Aurora Williams told reporters this week.
One of Chile’s only authorized lithium producers, Sociedad Química y Minera de Chile (SQM) (NYSE: SQM), reported an 82 per cent drop in net profit year-over-year for Q4, 2023. Revenue for last year’s fourth quarter dropped by 58 per cent for the major as well.
“Beyond prices, the challenges the world faces in terms of energy transition and climate change are still pending,” Williams added.
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The CEO of Albemarle Corporation (NYSE: ALB), Kent Masters, recently expressed the same sentiment. He says that demand for lithium will continue to grow regardless of its current low price.
This level of optimism is important for early-stage developers in Argentina like Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) and Argentina Lithium & Energy Corp. (TSX-V: LIT).
A recent report from the Argentine business firm Aleph Energy further reinforced the positive outlook. It predicted that Argentina’s annual lithium exports would steadily rise to US$30 billion by 2040 from under US$1 billion now.
Its price hit an all-time high in late 2022 before steadily declining. It has since levelled out and is expected to climb back up.
Credit: Asian Metal Inc.
Argentina’s lithium industry continues to intrigue investors from around the world. Last month, a delegation from Saudi Arabia’s Energy Ministry visited the Catamarca province to discuss potential mining deals.
Israeli and European investors have taken a keen interest as well.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
