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Lithium Americas Corp. (TSE:LAC)
TSX:LAC

Lithium Americas Corp. (LAC) AI Stock Analysis

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Lithium Americas Corp.

(TSX:LAC)

49Neutral
Lithium Americas Corp.'s overall score reflects its financial struggles with persistent losses and cash flow issues. However, recent corporate events provide a positive outlook with secured funding for key projects, which could improve future financial stability. Technical analysis shows mixed signals, and valuation concerns remain due to negative earnings and lack of dividends.
Positive Factors
Funding and Financial Backing
A $2.26 Bn loan from the Department of Energy’s Loan Program Office has been approved for the Thacker Pass project, covering around 90% of total cost and interest expense during construction.
Partnerships and Alliances
The partnership between LAC and GM has recently expanded to a joint venture structure, ensuring full alignment and commitment to project funding.
Resource and Production Expansion
LAC previously issued an updated reserve report growing M&I resource/P&P reserves and increased long-term volumes by 2x to 160 ktpa LCE in a project expansion.
Negative Factors
Commodity Prices and Market Conditions
There are uncertainties around commodity prices and the ultimate capital budget and timelines, affecting risk and reward considerations.
Neutral Analyst Outlook
Analyst is neutral on LAC considering valuation and risk/reward due to uncertainties around commodity prices, ultimate capital budget, and timelines.

Lithium Americas Corp. (LAC) vs. S&P 500 (SPY)

Lithium Americas Corp. Business Overview & Revenue Model

Company DescriptionLithium Americas Corp. operates as a resource company in the United States and Argentina. The company explores for lithium deposits. It owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina; Thacker Pass project located in north-western Nevada; and Pastos Grandes project located in the Salta province of Argentina. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyLithium Americas Corp. generates revenue through the exploration and development of its lithium projects, which involves the extraction and processing of lithium compounds. The company earns money by selling these lithium compounds to manufacturers of batteries and other applications. Key revenue streams include the sale of lithium carbonate and lithium hydroxide, which are used in various industries, particularly the growing electric vehicle market. Significant partnerships with other mining companies and strategic investors help fund the development of its projects, contributing to its earnings. Additionally, LAC may engage in joint ventures or collaborative agreements to enhance its production capabilities and market reach.

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
20
Very Negative
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
65
Positive
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
30
Negative
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
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
-468.44K-1.52M-658.00K-483.00K0.00
EBIT
-27.63M-117.69M-40.98M-28.86M59.66M
EBITDA
-27.36M-59.77M-43.45M-24.10M60.72M
Net Income Common Stockholders
-3.93M-48.13M-58.35M-35.22M51.66M
Balance SheetCash, Cash Equivalents and Short-Term Investments
195.52M636.00K933.00K148.07M83.61M
Total Assets
439.50M1.02B817.34M326.72M293.80M
Total Debt
3.11M207.58M264.98M124.77M120.22M
Net Debt
-192.40M206.94M264.05M-23.30M36.61M
Total Liabilities
32.04M232.55M281.03M136.02M134.18M
Stockholders Equity
407.46M784.00M536.32M190.70M159.62M
Cash FlowFree Cash Flow
-227.79M-71.90M-55.06M-92.65M-47.50M
Operating Cash Flow
-37.96M-65.22M-53.18M-30.88M-17.65M
Investing Cash Flow
-190.12M-230.88M-115.83M-42.60M-8.36M
Financing Cash Flow
422.96M-23.46M531.41M137.82M67.91M

Lithium Americas Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.02
Price Trends
50DMA
3.98
Positive
100DMA
4.26
Negative
200DMA
4.21
Negative
Market Momentum
MACD
<0.01
Negative
RSI
53.51
Neutral
STOCH
74.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LAC, the sentiment is Positive. The current price of 4.02 is above the 20-day moving average (MA) of 3.79, above the 50-day MA of 3.98, and below the 200-day MA of 4.21, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LAC.

Lithium Americas Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$1.93B-1.47-21.02%3.74%0.80%-29.57%
TSLAC
49
Neutral
$824.45M-4.13%
27
Underperform
C$2.79M-788.70%14.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LAC
Lithium Americas Corp.
4.02
-2.09
-34.21%
AVLNF
Avalon Advanced Materials
0.02
-0.03
-60.00%
TSE:LTHM
Idaho Champion Gold Mines Canada Inc
0.01
-0.06
-85.71%
CRECF
Critical Elements
0.28
-0.42
-60.00%
SGML
Sigma Lithium
8.15
-7.83
-49.00%

Lithium Americas Corp. Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Lithium Americas Secures Funding for Thacker Pass Phase 1
Positive
Apr 1, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Lithium Americas Advances Thacker Pass Project with Strategic Investments and Partnerships
Positive
Mar 28, 2025

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.

Business Operations and StrategyFinancial Disclosures
Lithium Argentina AG Reports Strong 2024 Results and Future Optimizations
Positive
Mar 17, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.