Lithium Americas Corp. (LAC) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 868.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 749
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.08
• Shares Outstanding: 241,662,810
• 10 Day Avg. Volume: 918,599
• 30 Day Avg. Volume: 868,427
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: -56.65M
• Enterprise Value/Gross Profit: -5.12K
• Enterprise Value/Ebitda: -27.36
• 1Y Price Target: $5.09
• Price Target Upside: 12.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• 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

Negative Factors

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. 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-17.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-188.02K	-992.00K	0.00	0.00	0.00	0.00
EBITDA	-35.20M	-41.64M	-28.61K	-60.06K	-43.84K	-22.59K
Net Income	-53.39M	-42.53M	-5.09M	-67.80M	-47.03M	-25.22M
Balance Sheet
Total Assets	1.34B	1.04B	436.89M	27.84M	10.85M	326.72M
Cash, Cash Equivalents and Short-Term Investments	508.85M	593.88M	195.52M	636.00K	933.00K	148.07M
Total Debt	206.68M	22.64M	3.89M	45.19M	41.76M	124.77M
Total Liabilities	303.25M	99.60M	32.04M	62.26M	52.54M	136.02M
Stockholders Equity	616.32M	635.00M	384.93M	-34.42M	-41.69M	190.70M
Cash Flow
Free Cash Flow	-512.18M	-190.71M	-227.79M	-57.62M	-44.87M	-20.92M
Operating Cash Flow	-58.28M	-13.01M	-37.96M	-49.93M	-45.55M	-21.32M
Investing Cash Flow	-453.90M	-177.69M	-188.94M	-20.64M	2.25M	-661.00K
Financing Cash Flow	645.20M	589.08M	430.71M	72.34M	41.11M	21.20M

Lithium Americas Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.53 is above the 20-day moving average (MA) of 4.10, above the 50-day MA of 4.02, and above the 200-day MA of 4.11, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 92.13 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	50 Neutral	923.64M	-14.13	-47.88%	―	-25.68%	-637.02%
LAC	49 Neutral	$1.09B	―	-8.20%	―	―	―
AVL	41 Neutral	22.32M	-3.43	-0.50%	―	0.00%	-10100.00%
CRE	41 Neutral	91.50M	-75.00	0.00%	―	0.00%	-152.83%
LTHM	27 Underperform	1.39M	-0.96	0.00%	―	0.00%	67.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.