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home / news releases / LAC - Lithium Americas: With DoE Financing Imminent Large Value Is Unlocked


LAC - Lithium Americas: With DoE Financing Imminent Large Value Is Unlocked

2024-03-18 11:34:09 ET

Summary

  • According to recent news and the company's last presentation, a $2.26bn loan from the Department of Energy could be imminent.
  • This news is material and unlocks the funding of the phase I project, associated with a 40k/year expected production of Lithium LCE by 2028.
  • Using a long-term Li price of 25k/t, calibrated on the marginal producers of the cost curve, and a WACC of 9%, I estimate the NPV of phase I at $1.5bn.
  • This represents a $10/share price target and a 59% upside on the current price. On top of that, you have a free option on phase II.
  • I rate the company as a strong BUY.

My thesis

For further details see:

Lithium Americas: With DoE Financing Imminent, Large Value Is Unlocked
Stock Information

Company Name: Lithium Americas Corp.
Stock Symbol: LAC
Market: NYSE
Website: lithiumamericas.com

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