Scotia Capial UpgradeThis pretty much summarizes key drivers that make LAC a top pick for many analysts in the lithium space. Will likely be kicking myself 6 months from now for not owning more.
Following increases to her lithium price forecast, Scotia Capital’s Lola Aganga raised her target for LAC to US$42.50 from US$38.50 incto US$42.50 from US$38.50
“Lithium Americas remains our top pick as a fully-financed, near-term producer advancing the largest new brine operation in the last decade on track for initial production in Q1/23, and situated in the bottom quartile of the total cash cost curve,” she said. “Although there remains some headline risk pending a federal BLM ruling on its Thacker Pass project in Q1/23, we see a limited impact to the overall development timeline of the project which is currently on track for construction to begin in 2023. Upcoming catalysts include: guidance update at Argentinian operations by yearend, a feasibility study and partnership/financing agreement for the Thacker Pass project in 2023, construction decision at Pastos Grandes in H2 2023, and the completion of business separation into Argentinian and North American focused entities by year-end 2023.”