Lithium Americas Corp. (LAC) AI Stock Analysis

• Market Cap: $769.78M
• Dividend Yield: N/A
• Average Volume (3M): 391.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 749
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): -0.14
• Shares Outstanding: 218,686,460
• 10 Day Avg. Volume: 341,135
• 30 Day Avg. Volume: 391,474
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 74.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.54
• Price Target Upside: 47.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Lithium Americas Corp. is facing substantial financial and operational challenges, with persistent losses and negative cash flows weighing heavily on its prospects. Despite strategic funding for the Thacker Pass project, the negative market momentum and valuation concerns contribute to a low overall stock score, reflecting the high risks associated with the company's current financial state.

Positive Factors

Financial Position

LAC ended 4Q with $594MM of cash on hand, which was ~7% above previous estimates following lower than expected capital spend.

Strategic Investment

LAC announced a $250MM strategic investment from Orion Resource Partners bringing both the project and company to fully funded status.

Negative Factors

Commodity Prices

There are uncertainties around commodity prices and the ultimate capital budget and timelines, affecting risk and reward considerations.

Project Risks

Concerns exist about potential capital or timeline overruns, which are common in large mining projects.

Lithium Americas Corp. Business Overview & Revenue Model

Company Description

Lithium Americas Corp. (LAC) is a resource company focused on the development and production of lithium, a critical component in batteries used for electric vehicles and renewable energy storage. The company operates in the mining sector and is engaged in developing its key projects, including the Cauchari-Olaroz project in Argentina and the Thacker Pass project in Nevada, USA. Through its strategic initiatives, Lithium Americas aims to become a leading supplier of lithium to the growing battery and energy storage markets.

How the Company Makes Money

Lithium Americas Corp. generates revenue primarily through the extraction, production, and sale of lithium products. The company's key revenue streams include the sale of lithium carbonate, a form of lithium used in battery manufacturing, from its Cauchari-Olaroz project. Additionally, the development of the Thacker Pass project represents a significant future revenue opportunity, as it positions the company to supply lithium to the North American market. Strategic partnerships with companies in the battery and automotive sectors may also contribute to its earnings by ensuring long-term offtake agreements and investment in its projects. As the demand for electric vehicles and renewable energy solutions grows, Lithium Americas stands to benefit from the increasing need for lithium products.

Lithium Americas Corp. Financial Statement Overview

Summary

Lithium Americas Corp. presents financial challenges, primarily driven by negative profitability and cash flow metrics. While the balance sheet remains robust with low leverage and high equity, the company needs to improve revenue generation and manage operational costs to enhance overall financial health.

Income Statement

Lithium Americas Corp. shows a challenging income statement with negative gross profit and net income. The company has not reported positive revenue growth, and the EBIT and EBITDA margins are negative, reflecting high costs relative to minimal revenue generation.

Balance Sheet

The company's balance sheet is relatively strong with a high equity ratio and a low debt-to-equity ratio, indicating strong equity financing and low leverage. Return on equity is negative due to net losses, but the high stockholders' equity provides a stable financial base.

Cash Flow

Cash flow analysis reveals negative free cash flow growth and a negative operating cash flow to net income ratio, highlighting cash flow challenges. Despite substantial financing activities, the company faces high capital expenditures impacting free cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
53.31K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-149.97K	-468.44K	-1.52M	-658.00K	-483.00K	0.00
	EBIT
-20.50M	-27.63M	-117.69M	-40.98M	-28.86M	59.66M
	EBITDA
-34.01M	-27.36M	-59.77M	-43.45M	-24.10M	60.72M
	Net Income Common Stockholders
-27.24M	-3.93M	-48.13M	-58.35M	-35.22M	51.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.67M	195.52M	636.00K	933.00K	148.07M	83.61M
	Total Assets
26.30M	439.50M	1.02B	817.34M	326.72M	293.80M
	Total Debt
0.00	3.11M	207.58M	264.98M	124.77M	120.22M
	Net Debt
-18.67M	-192.40M	206.94M	264.05M	-23.30M	36.61M
	Total Liabilities
475.86K	32.04M	232.55M	281.03M	136.02M	134.18M
	Stockholders Equity
25.82M	407.46M	784.00M	536.32M	190.70M	159.62M
Cash Flow		Free Cash Flow
-192.16M	-227.79M	-71.90M	-55.06M	-92.65M	-47.50M
	Operating Cash Flow
-7.54M	-37.96M	-65.22M	-53.18M	-30.88M	-17.65M
	Investing Cash Flow
-186.46M	-190.12M	-230.88M	-115.83M	-42.60M	-8.36M
	Financing Cash Flow
334.98M	422.96M	-23.46M	531.41M	137.82M	67.91M

Lithium Americas Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LAC, the sentiment is Negative. The current price of 3.75 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.10, and below the 200-day MA of 4.20, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LAC.

Lithium Americas Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	56 Neutral	$1.24B	―	-40.19%	―	32.63%	-58.81%
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%
AVL	42 Neutral	$15.37M	―	-5.23%	―	―	-11500.00%
LAC	39 Underperform	$769.78M	―	-4.13%	―	―	―
CRE	37 Underperform	$92.59M	60.56	2.13%	―	―	―
LTHM	27 Underperform	C$1.39M	―	-788.70%	―	―	14.62%

Lithium Americas Corp. Corporate Events

Lithium Americas Secures Funding for Thacker Pass Phase 1

Lithium Americas Corp. has announced the closing of a $250 million investment from Orion Resource Partners for the development of Phase 1 of the Thacker Pass lithium project in Nevada. This investment, along with contributions from General Motors and a loan from the U.S. Department of Energy, ensures that the project is fully funded through its construction phase, with completion targeted for late 2027. The project is significant as it aims to establish a U.S.-produced lithium supply chain, reducing reliance on foreign suppliers for critical minerals.

Lithium Americas Advances Thacker Pass Project with Strategic Investments and Partnerships

Lithium Americas Corp. reported its 2024 financial results and provided significant updates on its Thacker Pass lithium project. The company is progressing with the development of Thacker Pass, having secured strategic investments and partnerships, including a $250 million investment from Orion Resource Partners and a joint venture with GM worth $625 million. Additionally, a $2.26 billion loan from the U.S. Department of Energy will support the construction of processing facilities. These developments position Lithium Americas to achieve fully funded status for Phase 1 of Thacker Pass, targeting production by late 2027, and highlight its commitment to enhancing the North American lithium supply chain.

Lithium Argentina AG Reports Strong 2024 Results and Future Optimizations

Lithium Argentina AG reported strong operational results for 2024, with its Cauchari-Olaroz plant becoming the largest lithium carbonate operation in Argentina. The company achieved 90% capacity utilization and significantly reduced project-level debt. Looking forward, the company plans to optimize operations by integrating new processing technologies and expanding production capacity. The company anticipates increased production in 2025, with a focus on improving product quality and cost efficiencies, positioning itself well in the lithium market.