Lithium Americas Corp T.LAC

Back of the napkin

[Moemoney42]

Considering LiOH prices right now are ~$72,500/ton and LAC's first years production (on a full year basis) for Cauchari will be 19,600 tons, LAC could be looking at ~$1.42 billion in cash flow for a full years production.. now consider they're already ramping up for another 20,000 tons in phase 2 at Cauchari, we could see some incredible cash flows within a couple of years if prices stay at these levels.. and one would think that with crude prices and gas prices rising the demand for EV's is going to accelerate.. this should maintain today's LiOH price levels fairly well IMHO..??

[Moemoney42]

Now considering that and just over 134 million shares out, that would equate to ~ $10.60/share cash flow.. what multiple would be applied to that going forward with room to expand production.. at 5X we're looking at a $53 CDN stock price.. Hmm? ;-) 

[Sideout]

I like your thinking but aren't contracts are in the range of $20-$30k and pushing $35k/ton now. Maybe half of your estimate if not more which still makes that part of the company look great.

[Crispix14]

Spot isn't what is used to calculate FCF or NPV, rather a barometer of price trend. The spot price you quoted represents a tiny volume of sales, not what majors are selling their annual output at, as another user just mentioned. 25-30k is what should be used for any kind of valuation attempt. I expect this to remain elevated and continue upwards for the remainder of the decade. You also

[Moemoney42]

Agreed Crispix.. I should have been quoting Li2C03 prices not LiOH.. and my earlier post was referring to full year production which I know will take time to acheive.. that's why my emphasis was on the "full year"..  The fact that Ganfeng/Bankchak will be taking LCE at "market" prices is good and if the spot price is much higher (?) we still get to participate in some

[tiger2201]

Hi Moe, LAC is still building their Phase 1 project, and will start comissioning the 2nd half this year, and it possibly takes 1 year to get full capacity, if they are luck. They possibly can do this since they are JV with Ganfeng. LAC's neighbour Allchem (or Orocobra) has been in productionn for about 5 years now, they are only about 70-75% capacity, 50% is battery grade. LAC's phase 2

[Moemoney42]

  Lithium Americas submits formal application to DOE   2022-04-14 13:29 ET - News Release   Mr. Jonathan Evans reports LITHIUM AMERICAS SUBMITS FORMAL APPLICATION FOR DEPARTMENT OF ENERGY ATVM LOAN PROGRAM Lithium Americas Corp. has submitted a formal application to the U.S. Department of Energy (DOE) Loan Programs Office (LPO) for funding to be used at its 100-per