Lithium Americas (TSX:LAC)(NYSE:LAC) has just reported their 2018 first quarter financial and operating results. Lac’s first quarter ended as of March 31, 2018 with slightly less than expected results. Consisting of a $0.05 loss per share and sales of $1.1 million versus a $1.2 million expectation. Despite this seemingly bad news the consensus towards Lithium Americas has been extremely positive. Some highlights from Lithium Americas (Lac)’s report are as follows:
• As of March 31, 2018, LAC had US$43.5 million in cash and cash equivalents.
• Resulting from the completion of the Ganfeng Lithium and Bangchak investment agreements in 2017, Lithium Americas has US$205 million in an undrawn debt facility to finance its share of capital expenditures with respect to the Minera Exar joint venture.
• On April 5, 2018 LAC updated the measurement of indicated mineral resources at its Lithium Nevada project to 6.0 million tonnes of lithium carbonate equivalent (“LCE”) at 2,917 parts per million lithium (“ppm Li”) and the Inferred mineral resource to 2.3 million tonnes of LCE at 2,932 ppm Li.
• The updated to resources represents an approximate 80% increase in the Measured and Indicated mineral resource from the Company’s 2016 resource estimate, and establishes Lithium Nevada as the largest known lithium resource in the United States.
• On track to release results of NI 43-101 Preliminary Feasibility Study (“PFS”) by the end of Q2 2018.
• Continuing to evaluate potential partnership and financing scenarios to advance the Lithium Nevada project.
• Development activities continue as planned with the advancement of engineering, pond construction, camp construction, plant design and supply purchases, with Stage 1 production expected to start in 2020.
• Engineering for the infrastructure is over 80% complete with plant design near 70% complete.
• Evaporation pond construction commenced in early February and the filling of the ponds is expected to begin in the second half of 2018.
• There are currently close to 400 people working in Argentina, including direct employees and contractors.
• Facilities to provide an additional 400 beds to the construction camp are already commissioned.
• The sales for the three months ended March 31, 2018 were US$1.1 million (Q1 2017 – US$1.2 million)
Overall the news from the Q1 earnings report on this Canadian equity seems to have sparked interest in investors on the Canadian and American sides of the boarder. We here at HighTop StockWatch believe that some positive production news could spark investors even more in the right direction, putting TSE:LAC / LAC.TO back were it belongs in the 10-12 dollar range(Lithium Demand Expected to Continue Raising).
** We are currently long TSE:LAC but as always the opinions stated are that just opinions, you make and are responsible for your choices and investments, good luck!