LAC continues to be in the developing stage with a strong balance sheet, holding cash of $346.8M. LAC has an interesting asset portfolio with the only Lithium Project in the US, with scale and exploration to provide organic growth. The lithium market is expected to do well in 2024 which is a positive for LAC, but it is still pre-revenue and producing negative cash flows. Since splitting with the Argentina side of the business, LAC shares have been down -13.4%, but the Thacker Pass project remains intriguing. National Bank has recently initiated coverage for LAC and has given an 'outperform' rating. We like LAC for sector exposure but see it more as a hold right now and will need to see more concrete progress in Thacker Pass. The sector excitement has cooled, and we would contribute the decline more to the sector than anything specifically wrong at the company.
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