VANCOUVER, British Columbia - Lithium Americas Corp (TSX:LAAC). (TSX: LAC) (NYSE: LAC), currently valued at $744 million and trading at $3.41, has reported a substantial increase in the estimated mineral resources and reserves at its Thacker Pass lithium project in Humboldt County, Nevada. The company’s stock has shown strong momentum, gaining nearly 15% in the past week and 29% over six months, according to InvestingPro data. According to the company, the project, which is a joint venture with General Motors (NYSE:GM) Holdings LLC, now boasts the world’s largest measured lithium reserve and resource.
The updated mineral reserve estimate shows a 286% increase to 14.3 million tonnes of lithium carbonate equivalent (LCE) at an average grade of 2,540 parts per million (ppm) lithium. This supports an anticipated 85-year mine life with the potential for up to five expansion phases. The measured and indicated mineral resource estimate has also risen by 177% to 44.5 million tonnes LCE at an average grade of 2,230 ppm lithium since the November 2022 Feasibility Study.
The project’s expansion plan is targeting a production capacity of 160,000 tonnes per year of battery-quality lithium carbonate across four phases, with a fifth phase expected to provide additional capacity. While InvestingPro analysis indicates the company maintains a strong financial health score of 2.75 (GOOD), investors should note that LAC is currently burning through cash rapidly. For deeper insights into LAC’s financial metrics and access to 8 additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools. The company projects average annual EBITDA of $2.2 billion for the first 25 years of production and $2.1 billion for the base case scenario of an 85-year mine life.
Operating costs are estimated at $6,238 per tonne of lithium carbonate produced for the first 25 years, with a base case operating cost of $8,039 per tonne. Capital expenditure estimates for the initial phase of construction are $2.93 billion, with subsequent phases totaling $12.4 billion, including a 15% contingency based on Q2 2024 cost estimates.
Phase 1 construction began in early 2023, with completion targeted for late 2027. The final investment decision for Phase 1 is expected in early 2025, and Bechtel is contracted as the engineering, procurement, and construction management contractor for this phase.
The company emphasizes its commitment to sustainable development and community engagement, with Phase 1 expected to create nearly 2,000 jobs during construction and about 350 full-time jobs during operations. Over the life of the mine, an average of approximately 1,100 full-time employees are expected to support mining and processing operations.
This news release is based on a press release statement, which includes technical reports dated effective December 31, 2024. The reports are available on SEDAR+ and EDGAR. Analyst price targets for LAC currently range from $3 to $11, reflecting diverse views on the company’s prospects. InvestingPro subscribers can access detailed financial analysis, including Fair Value estimates and comprehensive financial health metrics to make more informed investment decisions.
In other recent news, Lithium Americas (NYSE:LAC) Corp. has seen significant developments. The company appointed Luke Colton as its new Executive Vice President and Chief Financial Officer, a move seen as crucial for the upcoming construction of its Thacker Pass lithium project in Nevada. In partnership with General Motors Holdings LLC, Lithium Americas aims to establish a North American lithium supply chain with this project, which is set to create nearly 2,000 direct jobs.
The company also secured a substantial $2.26 billion loan from the U.S. Department of Energy to finance the construction of its Thacker Pass lithium processing facilities. This financial backing is expected to support up to 800,000 electric vehicles annually, aligning with U.S. initiatives to secure a domestic supply chain for critical minerals.
Analyst firms have offered varying perspectives on Lithium Americas. Stifel reaffirmed its Buy rating on the company’s shares with a price target of $8.50, while Scotiabank (TSX:BNS) reduced its price target to $2.50, maintaining a Sector Perform rating. B.Riley raised its price target for Lithium Americas to $4.50, maintaining a Buy rating, and Deutsche Bank (ETR:DBKGn) revised its price target, maintaining a hold rating.
These recent developments reflect Lithium Americas’ strategic moves as it advances the Thacker Pass project, which is currently the largest known Measured and Indicated lithium resource in North America. The company’s partnership with General Motors and its securing of a significant loan underscore its commitment to this project and its contribution to North America’s lithium supply.
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