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  5. LAC: Your thoughts on purchasing LTH as a lithium developer play. [Lithium Americas Corp.]
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Investment Q&A

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Q: Your thoughts on purchasing LTH as a lithium developer play. Are there others you would prefer in this space?
Asked by philip on December 12, 2023
5i Research Answer:

It is important to note that lithium suppliers have been hit hard this year as reports came out that lithium may be in oversupply and EV demand has slowed. However, lithium demand is expected to be very high till 2030. LTH is still a very small speculative play in the industry with a market cap of just $212.8M. LTH has the second largest holding in Brazil’s “lithium valley.” BMO recently initiated coverage on LTH with an ‘outperform’ rating. Company has nearly no debt and a decent cash position which is nice to see. As a speculative play LTH is pretty solid with a large lithium property in Brazil which has displayed positive results thus far.

LAC is another develpmental lithium player as LTH but with a higher market cap and cash position. We would prefer LAC overall but see LTH as a decent small cap.