Q: Hi Team,
Can you comment on the news of the loan. Obviously good news. Would you be a buyer here or not?
Can you comment on the news of the loan. Obviously good news. Would you be a buyer here or not?
5i Research Answer:
LAC announced that it won a commitment for a US$2.26B loan from the US government, giving it the funds to complete it Thacker Pass mining project in Nevada even as costs rise. We do like this news as it bodes well for LAC's Thacker Pass project becoming operational, as well, of course, as a huge endorsement. LAC does have some cash on its balance sheet, but it has been reporting losses and negative cash flows so this will help speed development up and provides a safety net. LAC is still risky all things considered, but we do like this company in the lithium sector and would be comfortable starting a speculative position.