Q: This company is decreasing in price. Is there a good price to acquire for future growth? I know some buyers paid over $5 US. Why is it dropping, especially with lithium so important to EV Industry.
Thank you
Steve
Thank you
Steve
5i Research Answer:
LAC has been crushed this year. The are some reasons. The lithium bubble has deflated somewhat. Lithium prices are down. LAC does not have any revenue or earnings yet. Production is still likely two years away. It is a small cap company. Some investors do not think it has the ability to put a mine into production. Also, in April, it did a very large ($300M) dilutive financing. For the sector, we think it is becoming more attractive, but it is hard to catch a falling knife in price. It is almost half the price of its financing, barely two months ago. We think one could start accumulating at $3.50 to $3.75.