Lithium Americas returns to Q3 profit on financial gains
Overview
U.S. lithium developer reported Q3 net income after a loss in prior-year quarter
Company's return to profit driven by gains on financial instruments and convertible debt
Thacker Pass Phase 1 capex estimate raised to $3.83 bln due to higher labor and logistics costs
Outlook
Company targets Thacker Pass Phase 1 mechanical completion in late 2027, ramp-up through 2028
Lithium Americas sees fiscal 2026 Thacker Pass Phase 1 capex at $1.7-$2.0 bln
Company says inflation in labor and logistics costs driving higher capex estimates
Result Drivers
GAINS ON FINANCIAL INSTRUMENTS - Co said Q3 net income was driven by gains on JV Warrant obligation and convertible debt fair value changes
HIGHER ADMINISTRATIVE EXPENSES - Increased hiring, share-based compensation and regulatory fees raised general and administrative costs
LOGISTICS AND LABOR COSTS - Thacker Pass Phase 1 capex estimate rose due to higher labor wage rates, logistics challenges and inflation
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Loss Per Share | $0.05 | ||
Q3 Net Income | $90.1 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty mining & metals peer group is "buy."
Wall Street's median 12-month price target for Lithium Americas Corp. is $4.50, about 172.7% above its November 11 closing price of $1.65
Reuters Recommended Reads
Nov 11 - Lithium Americas raises Thacker Pass cost estimate by 31%
Nov 10 - India's NMDC in talks with Russia's Rosatom over lithium investments, sources say
Nov 10 - Canada's Discovery Mining Q3 revenue rises 57% on gold output, prices
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)