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Lithium Americas Corp. LAC has announced an increase in the mineral resource and mineral reserve estimates for the Thacker Pass lithium project in Humboldt County, NV. It has also released an independent National Instrument 43-101 technical report and an independent S-K 1300 technical report, both dated Dec. 31, 2024. The project is indirectly owned by Lithium Nevada Ventures LLC, a joint venture between Lithium Americas and General Motors Holdings LLC.
The Thacker Pass Technical Report exhibits the multigenerational potential for the transformative growth of the project. Thacker Pass is presently the largest measured lithium reserve and resource globally, with the potential to become an unrivaled district, creating American employment and helping the United States regain energy independence. The company is committed to the safe and sustainable development of Thacker Pass while engaging with its partners to improve the domestic production of essential minerals.
The highlights from the reports include a proven and probable mineral reserve estimate of 14.3 million tons (Mt) of lithium carbonate equivalent (LCE) at an average grade of 2,540 parts per million (ppm) lithium, a 286% increase since the November 2022 Feasibility Study. It also highlights a measured and indicated mineral resource estimate of 44.5 Mt LCE at an average grade of 2,230 ppm lithium, a 177% rise since the November 2022 Feasibility Study.
The project's expansion plan aims to produce 160,000 tons per year (t/y) of battery-quality lithium carbonate (Li2CO3) in four phases of 40,000 t/y each, with a sulfuric acid plant that does not include an extra Li2CO3 production circuit because Phases 1-4 are predicted to have excess capacity. Phase 4 expansion includes a direct rail line from Winnemucca to Thacker Pass. Construction of each of Phases 1 through 4 is projected to be spaced four years apart, with Phase 5 starting at the same time as Phase 4. Phase 1 is expected to create nearly 2,000 jobs during construction and is targeted for completion in late 2027.
Shares of LAC have lost 42.7% over the past year compared with a 18% decline of its industry.
Image Source: Zacks Investment Research
LAC’s Zacks Rank & Key Picks
LAC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Sylvamo Corporation SLVM and Silvercorp Metals Inc. SVM.
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 176.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
Sylvamo, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.7%, on average. SLVM’s shares have rallied 60.5% over the past year.
Silvercorp, currently carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters and matched once, with the average earnings surprise being 16.5%. SVM has gained around 24% in the past year.