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Financial report summary
?Risks
- Our future performance is difficult to evaluate because we have a limited operating history in the lithium industry.
- There is no guarantee that our development will result in the commercial extraction of mineral deposits.
- We do not control our equity method investments.
- Some of our current or future properties may not contain any reserves, and any funds spent on exploration and evaluation may be lost.
- We face risks related to mining, exploration, mine construction, and plant construction, if warranted, on our properties.
- Our long-term success will depend ultimately on our ability to generate revenues, achieve and maintain profitability, and develop positive cash flows from our mining activities.
- Our business is subject to cybersecurity risks.
- Our long-term success depends on our ability to enter into and deliver product under offtake agreements.
- We depend on our ability to successfully access the capital and financial markets. Any inability to access the capital or financial markets may limit our ability to meet our liquidity needs and long-term commitments, fund our ongoing operations, execute our business plan or pursue investments that we may rely on for future growth.
- Our ability to manage growth will have an impact on our business, financial condition, and results of operations.
- We may acquire additional businesses or assets, form joint ventures, or make investments in other companies that may be unsuccessful and harm our operating results and prospects.
- We are dependent upon key management employees.
- Our growth will require new personnel, which we will be required to recruit, hire, train, and retain.
- Lawsuits may be filed against us and an adverse ruling in any such lawsuit may adversely affect our business, financial condition, or liquidity or the market price of our common stock.
- Our mineral properties may be subject to defects in title.
- Our directors and officers may be in a position of conflict of interest.
- In order to manage our growth effectively and support our future operations, we expect to improve our financial and operations systems.
- There is no assurance we will secure a loan from the Department of Energy’s Loan Programs Office.
- The Company is dependent on a limited number of customers, which makes it vulnerable to the continued relationship with and financial health of those customers.
- If we are required to register as an investment company, we will be subject to a significant regulatory burden and our results of operations will suffer.
- We will be required to obtain governmental permits and approvals in order to conduct development and mining operations, a process that is often costly and time-consuming. There is no certainty that all necessary permits and approvals for our planned operations will be granted.
- Lithium and lithium byproduct prices are subject to unpredictable fluctuations which may greatly affect the value of our investment in our lithium assets and our ability to develop them successfully.
- The proposed Carolina Lithium project will be subject to significant governmental regulations, including the U.S. Federal Mine Safety and Health Act.
- The planned Tennessee Lithium project will be dependent upon our ability to source spodumene concentrate feedstock to be converted to lithium hydroxide at the facility.
- Compliance with environmental regulations and litigation based on environmental regulations could require significant expenditures.
- Changes in technology or other developments could adversely affect demand for lithium compounds or result in preferences for substitute products.
- Our growth depends upon the continued growth in demand for electric vehicles with high performance lithium compounds.
- Our operations may be further disrupted, and our financial results may continue to be adversely affected by the COVID-19 pandemic.
- Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our cash and cash equivalents fail.
- The market price and trading volume of our common stock may be volatile and may be affected by economic conditions beyond our control.
- We incur significant costs as a result of being publicly traded in the U.S. and Australia.
- Some provisions of Delaware law and our certificate of incorporation and bylaws may deter third parties from acquiring us or limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
- We do not anticipate paying dividends in the foreseeable future.
- If U.S. securities or industry analysts do not publish research reports about our business, or if they issue an adverse opinion about our business, the market price and trading volume of our common stock could decline.
- Unstable market and economic conditions may have serious adverse consequences on our business and financial condition.
- Sales of our common stock, or the perception that such sales may occur, could depress the price of our common stock.
Management Discussion
- Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
- This management’s discussion and analysis is a supplement to our financial statements, including notes, referenced elsewhere in our Annual Report and is provided to enhance your understanding of our operations and financial condition. This discussion contains estimates and, due to rounding, may not sum or calculate precisely to the totals and percentages provided in the tables.
- In the U.S., we are governed by the Exchange Act, including Regulation S-K 1300 thereunder. Sayona Mining and Atlantic Lithium, however, are not governed by the Exchange Act and from time-to-time report estimates of “measured,” “indicated,” and “inferred” mineral resources as such terms are used in the JORC Code. In March 2022, our partner, Atlantic Lithium, published a JORC Code mineral resource estimate update for Ewoyaa. Also in March 2022, our partner, Sayona Mining, published a JORC Code mineral resource estimate update for Authier and NAL. Although S-K 1300 and the JORC Code have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, they at times embody different approaches or definitions. In February 2024, we commissioned S-K 1300-compliant technical report summaries for NAL, Authier and Ewoyaa. Those technical report summaries are attached as exhibits to this Annual Report. Consequently, investors are cautioned that public disclosures of measures prepared in accordance with the JORC Code may not be comparable to similar information made public by companies subject to S-K 1300 and the other reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder.