On TOB was mentioned, that this afternoon, LAC is going to release its Q2 results. I am quite surpriced, that there is no formal communication from LAC, since LAC is listed on NYSE, some practice should be observed. So as your new “treasurerer” (Agora has sent me an email, pointing that out :-)), here are my  “take aways” for later today.

Firstly the chosen date and time: that is typically a bad signal to present results on Friday afternoon, so there may be some bad news in the pipeline, investors have to digest over weekend (Tesla typically does that when results are bad, despite intensive book cooking).

From the operational point of view, there is not much to expect. The P&L is going to be boring as always, the only figure I would be interested to see is their operating cash flow or how much $$$$$$$$ :-) LAC burned during the last quarter. I expect something in a range of $10-12 mill USD, that spending will securely keep the lights on for few quarters to come. Note, that this figure excludes any capex spending, which is given and funded from secured loans, so that part of the cash flow isn’t that important, except may tell how late Mirera Exar is with the site construction. Lot of “fat” (namely property plant and equipment’s line)  is going to disappear from the Balance Sheet as Cauchari-Olaroz should not be incorporated in LAC books any more.

We should also see in the press release (assuming there wont be, as usual, any conference call) some unspecific news about DFS status (such as “great progress”, “advancing toward competition”) and hopefully another reassurance, that the latest ddl – Q420, won’t be missed). I don’t expect any info about that mysterious solid state battery factory. Main reason for my skepticism is, that this type of battery is not in production anywhere in the world so it cannot be possibly produced at the production site anytime soon. IMHO, LAC does not have any trumps up in its sleeves, they have just put that into the application form in order to have it there “just in a case” that such facility would be needed. Potential partner needs to see the DFS first, so unless someone is already reading, no news on the Thacker Pass financing. I wild bet is, that should pumpers push LAC share price high enough, LAC may consider something like 50% dilution and finance the site internally. That, plus some “pocket money” from the federal government could do the trick.

Other than that, we could see, how things are going “down there”, when Cauchari-Olaroz is going to return to construction (my bet is not till October), who is going through the experience of a jail in  Jujuy (well, that is indeed a rubbish, close friend of the governor cannot possibly end up in a jail for a minor abuse of local Indian workers who do not have any rights anyway) and how much that affair is going to cost Minera Exar. New date for production start would be good, but at this stage it would be just an empty promise.  

Now it is your turn :-)