Lithium Americas Corp T.LAC

False impressions

[templetooth2]

I was under the (obviously) mistaken impression that with GM and government financing that LAC wouldn't need to raise any more equity.

I suspect I'm not alone. I now turn my thoughts to just how reliable is that gov't loan under Trump v.2.0

[Moemoney42]

With the last reports I've read they still needed this financing to have the full amount to take Thacker to phaze one production witout further dilution.  After that production should be able to pay for phaze 2 ramp up.  Although its a bit of an abrupt setback, they still own 100% of the play and the economics of this project are very profitable, and by the time it gets to production

[1condor]

I think there will be plenty of time to buy this stock as these levels as the closing of this financing is still week away. Agree however it does look tempting.

[Moemoney42]

Well I'm taking the Buffet approach to buy when there's blood in the streets.. and today's action is way oversold IMO.. a 27.5% haircut is IMO overdone.  They will now have the ability to power ahead with construction without pause.. heck this might even enable them to speed up the plan, and lock in prices at today's levels, not the inflated levels a year or two out.. a smart

[Moemoney42]

That being said, I'm certainly disappointed they didn't do the raise at $6 USD instead of $5.. :-(

[neosceptic]

I am with you, but I am sure they would if they could....Not the best environment for Li investments

[neosceptic]

It would be nice without the dillution, but LAC would need another loan: Development cost (excluding admin etc): 3B Resources: cash 200M + loan 1.9B (capitalize interest does not count) + 300M GM = 2.4B Short: 600M + 200M (my guess admin. etc) = 800M, after selling shares, they are still short 500M, but that could be taken as a loan sometimes 2026 when something can be presented ot bank or more