LAC - Lithium Americas Corp

[rukawa]

Usually I can justify a company on either an asset, earnings or revenue basis. But Lithium Americas I really just don't get unless people are speculating on future production capacity of its mines and future demand for lithium which I guess they are based on the following:

 

https://www.valueinvestorsclub.com/idea/LITHIUM_AMERICAS_CORP/141204

 

Financials here:

https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00027103

 

Anyways I just though it was odd to have over half a billion dollar market cap with 100 million in book value, 1 million in revenue, losing money and diluting shareholders.

[Spekulatius]

The intangible here is Lithium in their name, that may be all there is too it.

[glorysk87]

I'm a little confused. Cauchari is a real asset. The partnerships with SQM and Ganfeng offer them a deep bench of industry knowledge and expertise.

 

Obviously there's some risk in terms of funding the project as well as some execution risk (although that's substantially less with SQM and Ganfeng on board) - but you can discount that as you see fit.

 

Otherwise you have real ownership of one of the highest quality lithium assets in the world.

 

In your view, just because it's not currently operating means it's not worth anything?

[Contra123]

A few rambling thoughts on LAC and lithium in general:

 

1. For anyone interested in lithium miners or any other type of miner, highly recommend LSigurd's blog. See link below

https://reminiscencesofastockblogger.com/?s=lithium

 

2. If considering a position in any type of lithium mining company, it's useful to have a view on lithium prices. No one really knows, on that front. It's a hotly debated topic. There's a bunch of forecasts floating around. But IMO if SQM behaves as a profit maximizer, $/LCE price will go (a lot) lower.

 

3. If considering a position in a lithium mining company that is not currently producing much, $/lb or $/kt a good exercise to bolster the general sense about the quality of the asset e.g. location & position on cost curve.  E.g. from LSigurd's blog:

https://reminiscensesofastockblogger.files.wordpress.com/2017/10/peer_comp.png