Massif Capital – Lithium Americas: Why We Still Own LAC And LAAC

Summary:

  • Investing in the Lithium mining and processing industry has gotten very tricky.
  • Currently, we remain, at a small size, invested in two lithium mining firms, Lithium Americas and Lithium Argentina.
  • We view LAAC as a compelling value play with a de- risked producing asset and the potential to reinvest capital at high rates of return via the development.
  • LAC has many strengths: strong management, strong backing, a first-of- a-kind flow sheet.

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The following segment was excerpted from this fund letter.


Lithium Americas (NYSE:LAC)

Lithium Overview and Position Update

Investing in the Lithium mining and processing industry has gotten very tricky; this is perhaps no surprise; after all, the sector was nascent just a

EV/Target Production Capacity ($/t LCE)

Ticker

Current EV

2023E

2024E

2025E

2026E

ALB US Equity

$17,191

$106,411

$93,835

$77,901

$68,131

AKE AU Equity

$5,128

$105,491

$48,312

$30,195

$25,564

LAAC US Equity

$935

$230,345

$32,906

$28,793

$23,034

LTR AU Equity

$3,017

N/A

$132,895

$66,447

$66,447

LTHM US Equity

$2,743

$73,496

$48,806

$40,046

$40,046

MIN AU Equity

$13,755

$131,088

$131,088

$131,088

$131,088

PLS AU Equity

$7,907

$106,934

$99,137

$99,137

$67,498

SGML US Equity

$3,171

$120,437

$46,907

$42,848

$42,848

SQM US Equity

$15,498

$77,364

$67,693

$55,073

$53,796

Source: Company Reports, Bloomberg, TD Cowen & Massif Capital Estimates

(LCE)

Oct-21

Zijin Mining Group Co Ltd

Neo Lithium Corp

$737

7.63

$97

Nov-21

Lithium Americas Corp

Millennial Lithium Corp

$390

5.3

$74

Dec-21

Rio Tinto PLC

Rincon Mining

$825

11.8

$70

May-22

Zijin Mining Group Co Ltd

DunAn Holding Group

$1,125

2.14

$526

Jul-22

Ganfeng Lithium

Lithea Inc

$962

3.6

$267

Dec-22

Lithium Americas Corp

Arena Minerals Inc

$227

0.6

$378

Sep-23

Albemarle Corp

Liontown Resources Ltd

$4,359

5.4

$807

Average

$317

Source: Company Reports, Bloomberg, TD Cowen & Massif Capital Estimates

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