Lithium Americas Delivers Wider Q3 Loss than Expected

Lithium Americas (LAC) delivered unaudited financial and operating results for Q3 2021 characterized by a widened net loss and significant cash increase. LAC shares fell 2.41% to close at $33.56 on November 15.

Lithium Americas is a resource company that specializes in advancing lithium development projects. The company operates through Lithium Nevada and Cauchari-Olaroz business segments. (See Top Smart Score Stocks on TipRanks)

Q3 Results

Net loss in the quarter totaled $17.2 million compared to $6.5 million delivered the same quarter last year. The company posted a wider than expected loss per share of $0.14 compared to the consensus estimate of $0.08 loss per share.

Lithium Americas cash and cash equivalent more than doubled to $482.1 million in Q3 2021. The company ended the quarter with total assets worth $716.2 million.

Corporate Highlights

During the quarter, Lithium Americas continued construction activities at Cauchari-Olaroz as it targets first production mid-next year. The company is eyeing up to 40,000 tons per annum (tpa) Lithium carbonate equivalent. Equipment is already on the ground, with the construction of processing plants poised to commence.

The company is on course to secure permits from environmental regulators in Nevada for the Thacker Pass project. Additionally, Lithium Americas completed a strategic investment in Arena Minerals worth $5 million for a 12.9% equity interest.

Stock Rating

Early November, Jefferies analyst Laurence Alexander reiterated a Buy rating on the stock with a $39 price target, implying 16.2% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on six Buys and four Holds. The average Lithium Americas price target of $29.28 implies 12.8% downside potential to current levels.

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