Lithium Americas Corp. (LAC) AI Stock Analysis

• Market Cap: $851.54M
• Dividend Yield: N/A
• Average Volume (3M): 351.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 749
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -0.07
• Shares Outstanding: 218,904,880
• 10 Day Avg. Volume: 486,586
• 30 Day Avg. Volume: 351,546
• PEG Ratio: 0.71
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.08
• 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: $5.68
• Price Target Upside: 46.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 49 Neutral
• Price Target: ―

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

Lithium Americas has secured a US$250M strategic investment from Orion Resource Partners, providing full funding for Phase 1 of the Thacker Pass lithium project in Nevada.

Government Support

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.

Partnership

The partnership between LAC and GM has recently expanded to a joint venture structure, ensuring full alignment and commitment to project funding.

Negative Factors

Commodity Prices

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

Valuation

Analyst is neutral on LAC considering valuation and risk/reward due to uncertainties around commodity prices, ultimate capital budget, and timelines.

Lithium Americas Corp. Business Overview & Revenue Model

Company Description

Lithium Americas Corp. (LAC) is a resource company focused on the exploration and development of lithium projects. The company operates primarily in the mining sector, with its core products being lithium compounds, which are essential for the production of lithium-ion batteries used in electric vehicles, energy storage systems, and consumer electronics. LAC's main projects include the Cauchari-Olaroz project in Argentina and the Thacker Pass project in Nevada, USA, both of which are strategically positioned to supply the growing demand for lithium globally.

How the Company Makes Money

Lithium 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

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: 3.89
• 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 3.89 is below the 20-day moving average (MA) of 4.11, below the 50-day MA of 4.00, and below the 200-day MA of 4.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.12 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
AVL	53 Neutral	$15.37M	―	-5.23%	―	―	-11500.00%
SGML	51 Neutral	C$903.80M	―	-30.69%	―	11.53%	-154.63%
Sector *	50 Neutral	$2.00B	-1.01	-21.27%	3.72%	2.06%	-31.33%
LAC	49 Neutral	$851.54M	―	-8.91%	―	―	―
CRE	41 Neutral	C$84.96M	8.28	13.24%	―	―	―
LTHM	27 Underperform	C$2.79M	―	-1126.39%	―	―	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.