Lithium Americas Corp. (LAC) closed the latest trading day at $2.31, indicating a +0.87% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.15%. Shares of the lithium producer witnessed a loss of 15.81% over the previous month, trailing the performance of the Basic Materials sector with its gain of 1.99% and the S&P 500's gain of 2%. The investment community will be paying close attention to ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Lithium Americas Corp. (LAC) . Lithium Americas Corp. currently has an ave ...

[Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) As of June 30, 2024, the company's total assets significantly increased to $692.2 million from $439.5 million at the end of 2023, primarily driven by a rise in cash and cash equivalents and investments in property, plant, and equipment | | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | 384,565 | 205,883 | | **Total Non-Current Assets** | 307,671 | 233,617 | | **Total Assets** | **692,236** | **439,500** | | **Total Current Liabilities** | 19,090 | 24,563 | | **Total Long-Term Liabilities** | 8,566 | 7,475 | | **Total Liabilities** | **27,656** | **32,038** | | **Total Shareholders' Equity** | **664,580** | **407,462** | | **Total Liabilities and Shareholders' Equity** | **692,236** | **439,500** | - The increase in assets was mainly due to cash and cash equivalents rising to **$375.8 million** from **$195.5 million**, and property, plant, and equipment increasing to **$296.6 million** from **$206.1 million**[14](index=14&type=chunk) [Condensed Consolidated Interim Statements of Comprehensive Loss](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20Loss) For the six months ended June 30, 2024, the company reported a net loss of $12.3 million, a significant shift from a net income of $9.2 million in the same period of 2023 | | Six Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2023 ($ thousands) | | :--- | :--- | :--- | | General and administrative expenses | (9,094) | (5,358) | | Transaction costs | (2,181) | (6,830) | | Gain/(loss) on financial instruments | (4,484) | 26,959 | | Finance and other income | 6,076 | 52 | | **Net Income/(Loss)** | **(12,285)** | **9,167** | | **Basic and Diluted EPS** | **($0.07)** | **$0.06** | [Condensed Consolidated Interim Statements of Equity](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Equity) Shareholders' equity increased from $407.5 million at December 31, 2023, to $664.6 million at June 30, 2024, primarily due to $275 million in gross proceeds from a public offering, partially offset by net loss and share issuance costs | Description | Amount ($ thousands) | | :--- | :--- | | **Balance, December 31, 2023** | **407,462** | | Shares issued from public offering | 275,000 | | Share issuance cost | (12,854) | | Equity compensation amortization | 7,257 | | Net loss | (12,285) | | **Balance, June 30, 2024** | **664,580** | [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by financing activities was $261.7 million, primarily from a public offering, resulting in a significant increase in cash and cash equivalents to $375.8 million | Activity | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | | Net cash used in operating activities | (4,118) | | Net cash used in investing activities | (77,294) | | Net cash provided by financing activities | 261,726 | | **Change in Cash and Cash Equivalents** | **180,314** | | **Cash and Cash Equivalents - End of Period** | **375,830** | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1. Background and Nature of Operations](index=6&type=section&id=1.%20Background%20and%20Nature%20of%20Operations) Lithium Americas Corp. was formed following a separation on October 3, 2023, focusing on advancing the Thacker Pass lithium project in Nevada, and relies on equity financing as it has not yet generated significant revenue - The company's core asset is the **Thacker Pass lithium project** in Humboldt County, Nevada[3](index=3&type=chunk) - The company was created through a separation transaction from its former parent company, now named Lithium Americas (Argentina) Corp., on October 3, 2023[38](index=38&type=chunk) - To date, the company has not generated significant revenues and depends on equity financing to fund its operations and development activities[42](index=42&type=chunk) [Note 2. Basis of Preparation and Presentation](index=7&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The unaudited condensed consolidated interim financial statements are prepared in accordance with IFRS (IAS 34), with comparative periods presented on a carve-out basis from the former parent company - The financial statements are prepared in accordance with **IFRS**, specifically **IAS 34** for interim reporting[43](index=43&type=chunk) - Financial data for periods prior to the separation on October 3, 2023, are presented on a carve-out basis, including allocations of corporate costs from the former parent company[24](index=24&type=chunk)[40](index=40&type=chunk)[44](index=44&type=chunk) - The company's presentation and functional currency is the **US dollar (USD)**[61](index=61&type=chunk) [Note 3. Summary of Material Accounting Policies](index=8&type=section&id=3.%20Summary%20of%20Material%20Accounting%20Policies) The company's accounting policies are consistent with 2023 Annual Financials, involving significant judgments in impairment assessment of Thacker Pass and fair value estimation of Ascend Elements investment, with no impairment identified for Thacker Pass despite a market capitalization decrease - Following a decrease in market capitalization, an impairment assessment was conducted for the **Thacker Pass project** as of June 30, 2024, which concluded that no impairment was necessary[63](index=63&type=chunk)[88](index=88&type=chunk) - Management applied significant judgment in estimating the fair value of its investment in **Ascend Elements**, a private company, based on market trends and peer company analysis[46](index=46&type=chunk) - The company is currently evaluating the impact of **IFRS 18**, a new standard for financial statement presentation effective January 1, 2027[28](index=28&type=chunk)[65](index=65&type=chunk) [Note 8. Property, Plant and Equipment](index=11&type=section&id=8.%20Property,%20Plant%20and%20Equipment) The net book value of property, plant, and equipment increased to $296.6 million as of June 30, 2024, primarily due to $90.2 million in additions to the Thacker Pass project, with no impairment recognized despite a market capitalization decline | PP&E Category | Net Book Value at Dec 31, 2023 ($ thousands) | Net Book Value at June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Thacker Pass | 202,819 | 292,970 | | Other PP&E | 3,263 | 3,645 | | **Total** | **206,082** | **296,615** | - The company conducted an impairment test on Thacker Pass, determining its recoverable amount based on a discounted cash flow model. Key assumptions included an average lithium price of **$27,079/tonne** over 25 years, a Phase 1 capital cost of **$2.93 billion**, and a discount rate of **11.6%**[75](index=75&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[77](index=77&type=chunk) - The company has commitments for royalty payments on Thacker Pass, including an **8% gross revenue royalty** up to a cumulative **$22 million**, which then reduces to **4%**[57](index=57&type=chunk)[59](index=59&type=chunk) [Note 10. Agreements with General Motors](index=13&type=section&id=10.%20Agreements%20with%20General%20Motors) The company has a strategic agreement with General Motors (GM) for a total investment of $650 million, with the second tranche contingent on funding for Thacker Pass Phase 1, and GM holding an offtake agreement for up to 100% of Phase 1 production - GM's investment is structured in two tranches: Tranche 1 (**$320.1 million**) is complete, and Tranche 2 (up to **$329.9 million**) is pending the company meeting certain funding conditions for Thacker Pass[80](index=80&type=chunk)[93](index=93&type=chunk) - The Tranche 2 agreement is accounted for as a derivative liability, with a fair value of **$360 thousand** as of June 30, 2024[94](index=94&type=chunk)[115](index=115&type=chunk) - GM has an offtake agreement to purchase up to **100%** of Phase 1 production at market rates for a term of **ten years**, with extension options[116](index=116&type=chunk)[86](index=86&type=chunk) [Note 12. Share Capital and Equity Compensation](index=16&type=section&id=12.%20Share%20Capital%20and%20Equity%20Compensation) In April 2024, the company completed a public offering of 55 million common shares, raising $275 million in gross proceeds to advance the Thacker Pass project, and maintains an equity incentive plan for employees and directors - On April 22, 2024, the company raised **$275 million** in gross proceeds (**$262 million** net) through a public offering of **55 million** common shares[119](index=119&type=chunk) | Equity Unit Type | Outstanding at Dec 31, 2023 (thousands) | Granted in H1 2024 (thousands) | Outstanding at June 30, 2024 (thousands) | | :--- | :--- | :--- | :--- | | RSUs | 1,650 | 1,936 | 2,739 | | DSUs | 95 | 42 | 137 | | PSUs | 628 | 442 | 750 | [Other Notes](index=9&type=section&id=Other%20Notes) Other notes detail the company's financial position and activities, including increased cash and cash equivalents, fair value losses on investments, transaction costs for DOE loan due diligence, and a subsequent grant from the U.S. Department of Defense - **Cash and Cash Equivalents (Note 4):** Increased to **$375.8 million** at June 30, 2024, from **$195.5 million** at December 31, 2023[48](index=48&type=chunk) - **Investments (Notes 6 & 7):** Recognized a fair value loss of **$1.9 million** on its investment in Green Technology Metals and a **$2.6 million** loss on its investment in Ascend Elements for the six months ended June 30, 2024[68](index=68&type=chunk)[52](index=52&type=chunk) - **DOE Loan (Note 17 & Background):** The company received a conditional commitment for a **$2.26 billion** loan from the U.S. Department of Energy (DOE) and incurred **$1.7 million** in related due diligence costs in H1 2024[9](index=9&type=chunk)[127](index=127&type=chunk) - **Subsequent Event (Note 22):** On August 5, 2024, the company received an **$11.8 million** grant from the U.S. Department of Defense to support local infrastructure upgrades[145](index=145&type=chunk)

Let's take a look at what these Wall Street heavyweights have to say about Lithium Americas Corp. (LAC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Of the 14 recommendations that derive the current ABR, seven are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 50% and 14.3% of all recommendations. While the ABR calls for buying Lithium Americas Corp., it may not be wise to make an investment decision solely based on this infor ...

Company Performance - Lithium Americas Corp. is expected to be closely monitored by analysts and investors during its upcoming earnings disclosure [1] - The company's stock closed at $2.58, reflecting a daily increase of 1.57%, outperforming the S&P 500's gain of 1.02% [4] - Over the past month, shares of Lithium Americas Corp. have decreased by 14.77%, which is significantly worse than the Basic Materials sector's loss of 3.78% and the S&P 500's gain of 4.44% [8] Analyst Estimates - Recent adjustments to analyst estimates for Lithium Americas Corp. are crucial as they indicate the changing nature of near-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [6] - The Zacks Consensus EPS estimate for Lithium Americas Corp. has remained unchanged over the last 30 days, and the company currently holds a Zacks Rank of 2 (Buy) [9] Industry Context - The Mining - Miscellaneous industry, which includes Lithium Americas Corp., is part of the Basic Materials sector and currently ranks 179 in the Zacks Industry Rank, placing it in the bottom 29% of over 250 industries [2] - The Zacks Rank system indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [7]

分组1: Lithium Americas (LAC) - Lithium Americas has $147 million in cash, providing some operational runway despite recent challenges [1] - The company's stock has declined over 35% in the past month, significantly underperforming the basic materials sector and the S&P 500 [4] - Major construction at the Thacker Pass lithium mining site is expected to begin in the second half of the year, with a $2.26 billion federal loan secured [4][13] 分组2: Sirius XM Holdings (SIRI) - Sirius XM shares are currently trading at half their price from the previous year, presenting a compelling value case [6] - The company has exclusive content deals with major sports leagues, contributing to steady revenue growth averaging 9% annually over the past decade [7] - Despite a decline in business, Sirius XM maintains a price-to-earnings ratio of 8x and continues to return value to shareholders through buybacks and dividends [14] 分组3: Pioneer Power Solutions (PPSI) - Pioneer Power Solutions is trading at nearly $4 per share, with a strong position in power solutions and a revenue of $40.8 million in 2023 [9] - The company experienced a robust 30% revenue growth in 2024, supported by strong demand for electrical products [16] - PPSI stock trades at just 7x estimated 2025 earnings, positioning it attractively amidst growing trends in electric vehicles and AI [16]

Group 1: Surge Battery Metals - Surge Battery Metals recognized as one of the 2024 Top 50 mining companies on the TSX Venture Exchange, attributed to share price appreciation, trading volume, and market capitalization growth [2] - Completion of four drill holes for the 2024 Nevada North Lithium Project confirmed mineralized clay horizons, with four additional holes underway to expand the mineralized clay footprint [3] - The existing inferred resource of lithium carbonate equivalent is 4.67 million tonnes, indicating potential for future mining activity [13] Group 2: Nikola - Nikola continues to grow its hydrogen fuel cell truck business, securing orders for 140 trucks from 12 customers in Q1 2023 and delivering 40 fuel cell electric vehicles [6] - Plans to expand hydrogen and battery-electric offerings in 2024, aiming for 14 hydrogen fueling solutions to position hydrogen vehicles as a viable alternative to electric vehicles [7] - A 1-for-30 reverse stock split announced, reducing authorized share count to 1 billion, leading to a significant stock decline [14] Group 3: Lithium Americas - Lithium Americas has a market capitalization of $610 million, contrasting with the Thacker Pass asset's estimated $5.7 billion after-tax net present worth, expected to generate strong EBITDA and cash flows upon production starting in 2027 [8] - The U.S. Department of Energy provisionally agreed to a $2.26 billion loan for the company, indicating confidence in the asset's ability to cover the loan [8] - Recent partnerships and funding include a $650 million investment from General Motors for its Nevada project and $275 million raised through equity dilution to complete the project on schedule [17]

To follow LAC in the coming trading sessions, be sure to utilize Zacks.com. Analysts and investors alike will be keeping a close eye on the performance of Lithium Americas Corp. in its upcoming earnings disclosure. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outsideaudited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.37% lower within the past month. Righ ...

Financial Data and Key Metrics Changes - In Q1 2024, the Caucharà project achieved a production milestone of 4,500 tons of lithium carbonate, representing a 20% increase compared to Q4 2023 [19] - The company noted a meaningful inventory build at the end of Q1, which is substantial and linked to improved shipment plans as part of the ramp-up [30] Business Line Data and Key Metrics Changes - The ramp-up of production at the Caucharà project is ongoing, with the team addressing challenges as they arise to limit downtime and improve operational efficiency [9][19] - Improvements in product quality were noted between Q4 2023 and Q1 2024, with the company meeting most technical and battery specifications [50] Market Data and Key Metrics Changes - The company expects improved pricing to be reflected in Q2 due to enhanced product quality and regular shipment plans [31] - The Pastos Grandes transaction is on track to be finalized around the end of Q2, providing an additional $70 million to support operations in Argentina [37] Company Strategy and Development Direction - The company is focused on ramping up production, maintaining a strong balance sheet, and advancing the regional development plan for the Pastos Grandes Basin [22][35] - The company is exploring additional long-term debt options to leverage improved lending conditions in Argentina to support future growth plans [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to address challenges during the ramp-up and highlighted the importance of operational efficiency [19][20] - The primary objective for the remainder of the year is to continue ramping up production consistently towards the 2024 target of 20,000 to 25,000 tons of lithium carbonate [36] Other Important Information - The company has initiated a corporate cost reduction program while remaining committed to the communities where it operates [20] - The KCL plant's improvements are expected to significantly impact production volumes and quality [54] Q&A Session Summary Question: Can you clarify what the ramp-up testing means? - Management indicated that they are testing higher production levels and addressing issues as they arise, which is typical during ramp-ups [24] Question: What does planned maintenance look like at Caucharà? - Management elaborated on the planned downtime in April to replace piping and seals, which is common during ramp-ups [28] Question: How is the inventory situation at the end of the quarter? - The company confirmed a healthy pond inventory, which is not a bottleneck for achieving nameplate capacity [83] Question: What are the motivations for using DLE at Pastos Grandes? - Management noted that advancements in DLE technology are being considered due to the lower lithium concentration at Pastos Grandes [67] Question: How is the power situation now? - Management stated that power disruptions experienced earlier were seasonal and that mitigation plans are being implemented to address these issues [91]

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