Q: Can you provide any update information on LI. It was looking good in Jan./23 but has fallen . Is it a hold or can you compare it to LAC.
5i Research Answer:
Li is about 1/8th the size of LAC, and not yet producing, so comparables are not so easy. It last month decided to defer its planned spin out of its Macusani project, which resulted in some weakness and shareholder confusion. It continues to advance its projects in Peru and Nevada, has filed a PEA and recently received some drilling permits. But there is lots of work still to do and it will need more capital. It has $10M cash, but cash flow was negative $26M in the last year. Insiders own 2% and there has been some insider buying this year. Overall, we would consider it OK for the sector, but speculative. We would prefer LAC but as noted it is a bit of an apples/oranges comparison.