IB Net Payout Yields Model

Lithium Americas: EV Battery Play

Update - Mar. 1
No huge surprise, Lithium Americas starts construction at Thacker Pass, though it ironically happens the day after Tesla talks about stripping out rare minerals from EV production. Buy any weakness caused by Musk and Tesla. 

-Lithium Americas (NYSE:LAC) said Thursday it has started construction at its Thacker Pass lithium project in Nevada, following the receipt of notice to proceed from the U.S. Bureau of Land Management.

-The announcement follows the 9th U.S. Circuit Court of Appeals' denial of a request by environmental groups for an emergency injunction that would have stopped work on the project.

-The court order did not impose any restrictions expected to impact the construction timeline, the company said.

Update - Dec. 22
Lithium Americas testing the $20 lows with this brutal market and concerns about EV demand. 

Finviz Chart

Update - Dec. 20
In no surprise, Lithium Americas agreed to acquire the remaining interest in Arena Minerals. The company already owned a 19.9% position plus warrants. For a $3 billion market cap, Lithium Americas has a large lithium project list now. 

-Lithium Americas (NYSE:LAC) -2.5% said Tuesday it would buy Arena Minerals (OTCQX:AMRZF) for an implied equity value of $227 million (C$311 million), in a move to boost its dominance in the Pastos Grandes basin in Argentina.
Under terms, Arena’s shareholders will receive 0.0226 of a Lithium Americas common share for each Arena Share held, which translates to Lithium Americas paying C$0.67 for every Arena share.

-“The significant synergies between our two projects and a better understanding of the basin will enable us to advance development planning and maximize our growth pipeline in Argentina," LAC president and CEO Jonathan Evans said.

Original article posted on Dec. 16 
  • Lithium Americas is quickly moving from a lithium story stock to a production story.
  • The lithium miner has multiple projects in the works in both the U.S. and Argentina while lithium faces possibly supply shortages due to massive EV demand.
  • The stock appears cheap based on the current valuation and the potential profits produced from LCE sold at prices far above original expectations.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
The lithium sector has been red hot, yet demand for lithium has only started as electric vehicle production ramps up. Lithium Americas (NYSE:LAC) is a pre-revenue lithium producer working on constructing multiple mines around the world. My investment thesis is Bullish on the stock with lithium mining production around the corner right as prices have surged.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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