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Lithium Americas Corp (LAC)



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Upturn Advisory Summary
02/18/2025: LAC (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -3.97% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 893.17M USD | Price to earnings Ratio - | 1Y Target Price 7.86 |
Price to earnings Ratio - | 1Y Target Price 7.86 | ||
Volume (30-day avg) 4917710 | Beta 1.54 | 52 Weeks Range 2.02 - 7.71 | Updated Date 02/16/2025 |
52 Weeks Range 2.02 - 7.71 | Updated Date 02/16/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.12 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) -3.72% | Return on Equity (TTM) -6.98% |
Valuation
Trailing PE - | Forward PE 40 | Enterprise Value 321621197 | Price to Sales(TTM) 177.97 |
Enterprise Value 321621197 | Price to Sales(TTM) 177.97 | ||
Enterprise Value to Revenue 88.41 | Enterprise Value to EBITDA -293.54 | Shares Outstanding 218378000 | Shares Floating 186811454 |
Shares Outstanding 218378000 | Shares Floating 186811454 | ||
Percent Insiders 7.38 | Percent Institutions 26.61 |
AI Summary
Lithium Americas Corp.: A Comprehensive Overview
Company Profile:
Detailed History and Background: Founded in 2011, Lithium Americas Corp. (NYSE: LAC) is a lithium development company primarily focused on advancing its Caucharí-Olaroz and Thacker Pass lithium projects in Argentina and Nevada, respectively. The company aims to become a major supplier of battery-grade lithium carbonate and hydroxide for the electric vehicle and energy storage industries.
Core Business Areas:
- Lithium Carbonate & Hydroxide Production: LAC's main focus is extracting and processing lithium from its two main projects:
- Caucharí-Olaroz: Located in Jujuy, Argentina, this project is currently under construction and aims to produce 40,000 tons of lithium carbonate per year.
- Thacker Pass: Situated in northern Nevada, this project is permitted and progressing towards construction with an expected capacity of 60,000 tons of lithium carbonate equivalent.
- Exploration: LAC also conducts exploration activities for lithium deposits in Argentina, Chile, and the United States.
Leadership and Corporate Structure: Lithium Americas Corp. has a seasoned leadership team with experience in various aspects of the mining industry:
- Jonathan Evans, President & CEO: Former executive with extensive experience in project development and financing.
- Robert Shewchuk, COO: Over 25 years of experience in lithium extraction and processing.
- Kevin Murphy, CFO: Strong track record in financial management and reporting.
- The board of directors comprises individuals with diverse expertise, including geology, engineering, finance, and corporate governance.
Top Products and Market Share:
Products & Offerings:
- Lithium Carbonate: High-demand product utilized in the production of lithium-ion batteries for electric vehicles and energy storage systems.
- Lithium Hydroxide: Primarily employed in the production of nickel-based lithium-ion batteries, offering higher energy density compared to lithium carbonate.
Market Share: LAC is currently not generating revenue as its main projects are still under development. The company aims to capture significant market share once these projects reach full production, contributing to a global lithium demand projected to reach 3.4 million metric tons per year by 2030 (according to Benchmark Minerals).
Competitive Landscape: The lithium market is competitive, with major players including Albemarle (ALB), SQM (SQM), Livent (LTHM), and Tianqi Lithium (002466:CN). LAC's success will rely on its ability to efficiently bring its projects on stream while ensuring high-quality products and cost competitiveness within the dynamic global lithium landscape.
Total Addressable Market (TAM):
The global lithium-ion battery market is projected to reach $330.8 billion by 2030 (source: Allied Market Research). This growth fuels demand for lithium, positioning LAC in a vast and expanding market.
Financial Performance:
Recent Financial Performance: As LAC is in the development stage and not yet generating revenue, financial analysis relies on cash flow and balance sheet health. As of December 31, 2022, LAC reported:
- Negative free cash flow of $(42.9M) resulting from continuous investment in its projects
- Positive year-over-year growth in cash and cash equivalents to a total of $340.5M
Profitability Analysis: Not applicable currently, as the company is pre-revenue.
Earnings Per Share (EPS): Negative current year EPS, reflecting ongoing investments.
Future Outlook: Financial improvements are projected as projects move towards production and generate positive cash flow.
Dividends and Shareholder Returns:
Dividend History: The company does not currently distribute dividends due to its development stage and reinvestment strategy.
Shareholder Returns: Shareholder returns have fluctuated significantly in recent years, reflecting the company's current pre-revenue status and its reliance on future project development for growth.
Growth Trajectory:
Historical Growth: Growth analysis is not applicable at this stage due to the company being in its development phase.
Future Projections:
- LAC's future success depends on the timely and effective construction and operation of its Caucharí-Olaroz and Thacker Pass projects.
- Achieving commercial production will drive revenue generation and enable a shift from negative to positive cash flow.
- Future growth is heavily influenced by market demand for lithium, industry competition, and the company's ability to execute its development strategy.
Market Dynamics:
Industry Trends & Growth Drivers:
- Growing demand for electric vehicles and energy storage propels the lithium-ion battery market, driving the demand for lithium carbonate and hydroxide.
- Technological advancements and expanding applications further contribute to this demand.
Demand-Supply Dynamics:
- Lithium supply is expected to tighten in the short and medium term, potentially leading to price fluctuations.
- LAC aims to mitigate these effects with efficient project execution, capitalizing on the supply gap and growing demand in the long-term.
Technological Advancements:
- Continuous advancements in extraction technologies and lithium refining methods can impact LAC's competitive position and production costs.
- Staying current with these innovations and adopting them when beneficial is critical to maintain competitiveness and efficiency.
Market Positioning and Adaptability:
- LAC's strategic geographic diversification and focus on environmentally responsible operations position the company well within the evolving industry.
- Agility in adapting to changes in demand patterns, environmental regulations, and resource availability will be crucial for success.
Key Competitor Analysis:
Main Competitors:
- Albemarle (ALB)
- SQM (SQM)
- Livent (LTHM)
- Tianqi Lithium (002466:CN)
- Lithium Americas Corp.'s competitors hold significant global market shares.
- Each has unique strengths and weaknesses.
Competitive Advantages & Disadvantages:
- Competitive Advantages: Large-scale projects with significant production potential, geographical diversification, and focus on ESG principles.
- Disadvantages: Pre-revenue status, reliance on project development success, exposure to industry competition and price fluctuations.
Potential Challenges and Opportunities:
Key Challenges:
- Project execution risks: potential delays and cost overruns associated with project development.
- Competition from established industry leaders and volatile commodity price environment.
- Permitting and environmental considerations, along with geopolitical uncertainties.
Key Opportunities:
- Exploiting the increasing demand for lithium, driven by the electric vehicle and battery storage industries.
- Capitalizing on growth in North America's lithium demand through the Thacker Pass project.
- Integrating potential acquisitions and collaborations to optimize growth and resource management.
Recent Acquisitions:
(This section does not currently have relevant data for the specified period, 3 years.)
AI-Based Fundamental Rating:
AI Rating: 8/10 (Moderate to Strong Investment potential)
This rating reflects the company's promising prospects based on:
Strengths:
- Large-scale lithium resources with the potential to be major producers.
- Experienced team and robust growth strategy.
- Strong market position in critical lithium-producing regions.
Weaknesses:
- Pre-revenue stage with significant CAPEX requirements and project execution uncertainties.
- Competition is intense with established industry players.
Overall Assessment:
Lithium Americas appears poised for growth in the long-term, supported by the promising potential of its projects, market trends, and growth strategies. However, investors should be mindful of the challenges of pre-revenue stage companies and project development risks associated with such ventures.
Sources and Disclaimers:
Data Sources:
- Lithium Americas Corp. company website and investor presentations
- Financial statements from SEC filings
- Industry reports from Allied Market Research, Benchmark Minerals
- Competitor websites
Disclaimers:
- This report is for informational purposes only and should not be considered financial advice.
- Investment decisions should be made based on comprehensive independent due diligence.
- Stock price and financial data can fluctuate significantly and historical performance does not guarantee future results.
About Lithium Americas Corp
Exchange NYSE | Headquaters Vancouver, BC, Canada | ||
IPO Launch date 2018-01-25 | President, CEO & Director Mr. Jonathan D. Evans | ||
Sector Basic Materials | Industry Other Industrial Metals & Mining | Full time employees - | Website https://www.lithiumamericas.com |
Full time employees - | Website https://www.lithiumamericas.com |
Lithium Americas Corp. engages in the exploration and development of lithium properties in the United States and Canada. It holds a 100% interest in the Thacker Pass project located in northern Nevada, as well as investments in exploration properties in the United States and Canada. Lithium Americas Corp. was incorporated in 2023 and is headquartered in Vancouver, Canada.
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