Lithium Americas Earnings: Construction Continues on the US' Largest Lithium Resource

Lithium Americas reported a fiscal 2024 fourth quarter in line with our expectations. Management announced on March 15 two key updates, which can be found in our note from March 14, regarding the status of Thacker Pass, a lithium clay mining project in Nevada. First, Lithium Americas received a commitment from the US Department of Energy for a USD 2.26 billion loan to fund most of the project. Additionally, management announced a slight delay and enhanced capital cost; the project is now expected to begin production in 2027 at a total capital cost of USD 2.9 billion. We are maintaining our USD 18 per share fair value estimate (CAD 24) and no-moat rating. At current prices, Lithium Americas is significantly undervalued, with shares trading at a more-than 60% discount to our fair value estimate.