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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)

Rating:49Neutral
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
Construction Progress
Construction at Thacker seems to be progressing well against the late-2027 start-up target.
Funding Status
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.
Partnership and Alignment
The partnership between LAC and GM has recently expanded to a joint venture structure, ensuring full alignment and commitment to project funding.
Negative Factors
Labor Risks
Labor seems to be the key risk — management remains confident but acknowledged staffing keeps them up at night.
Tariff Exposure
LAC views tariff exposure ~$50M, mainly building materials, though this is fluid, and concerns exist this could increase.

Lithium Americas Corp. (LAC) vs. iShares MSCI Canada ETF (EWC)

Lithium Americas Corp. Business Overview & Revenue Model

Company DescriptionLithium 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 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. faces significant financial challenges with negative revenue growth, substantial net losses, and negative cash flows. The balance sheet shows some stability in equity, but profitability metrics are concerning. The company must address operational inefficiencies and cash flow issues to improve its financial health.
Income Statement
15
Very Negative
The income statement shows significant challenges, with negative revenue growth and substantial net losses. The gross profit margin and net profit margin are deeply negative, highlighting inefficiencies. The EBIT and EBITDA margins are also negative, indicating operational losses. Despite a slight revenue in TTM, the overall trajectory remains troubling.
Balance Sheet
40
Negative
The balance sheet reflects a moderate financial position with a relatively high equity ratio of 60.76% in TTM, suggesting some stability. However, the debt-to-equity ratio is low at 0.04, indicating limited leverage. The return on equity remains negative due to losses, which is a concern for profitability.
Cash Flow
30
Negative
The cash flow statement reveals ongoing negative free cash flow and operating cash flow. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash generation issues. However, substantial financing cash flows suggest external funding availability, offering some liquidity support.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.000.00
Gross Profit
0.00-468.00K-1.52M-658.00K-483.00K
EBIT
0.00-27.63M-60.86M-44.49M-23.07M
EBITDA
0.00-27.36M-59.77M-43.45M-24.10M
Net Income Common Stockholders
0.00-3.93M-65.80M-47.03M-25.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
593.88M195.52M636.00K933.00K148.07M
Total Assets
1.04B439.50M27.84M10.85M326.72M
Total Debt
22.64M3.89M45.19M41.76M124.77M
Net Debt
-571.25M-191.62M44.55M40.82M-23.30M
Total Liabilities
99.60M32.04M62.26M52.54M136.02M
Stockholders Equity
635.00M407.46M-34.42M-41.69M190.70M
Cash FlowFree Cash Flow
-190.71M-227.79M-57.62M-44.87M-20.92M
Operating Cash Flow
-13.01M-37.96M-49.93M-45.55M-21.32M
Investing Cash Flow
-177.69M-188.94M-20.64M2.25M-661.00K
Financing Cash Flow
589.08M430.71M72.34M41.11M21.20M

Lithium Americas Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.57
Price Trends
50DMA
3.88
Negative
100DMA
4.01
Negative
200DMA
4.27
Negative
Market Momentum
MACD
-0.10
Positive
RSI
39.26
Neutral
STOCH
20.74
Neutral
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 3.57 is below the 20-day moving average (MA) of 3.71, below the 50-day MA of 3.88, and below the 200-day MA of 4.27, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.74 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$754.49M-30.69%11.53%-154.63%
51
Neutral
$2.01B-1.27-21.11%5.15%2.92%-30.46%
TSLAC
49
Neutral
$794.62M-8.91%
TSAVL
49
Neutral
$17.65M-5.23%-11500.00%
TSCRE
41
Neutral
$86.05M8.2813.24%
27
Underperform
C$1.39M-1126.39%14.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LAC
Lithium Americas Corp.
3.47
-0.30
-7.96%
TSE:AVL
Avalon Advanced Materials
0.03
-0.03
-49.09%
TSE:CRE
Critical Elements
0.37
-0.32
-47.10%
TSE:SGML
Sigma Lithium
6.59
-10.20
-60.75%
TSE:LTHM
Idaho Champion Gold Mines Canada Inc
0.01
-0.02
-66.67%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.