Some of you may have noticed, that LAC has published its quarterly letter. Nothing really special, just an update about the progress, lot of an environmental garbage, ESG and stuff like that to make LAC look good. Waste of the time to read that sections, unless you are one of the protestors, trying to make the life of LAC in Thacker Pass misearable.

Few points, I have considered interesting:

• Cost Estimate of Phase 1 went up to $2.9 bill. Take into consideration the loan + cash and you know, what is coming (again), for detail see Page 7.
• An update of the feasibility study is available. That is lot of reading, I have skipped that for the time being. It would be interested to see, what is their actual cost structure.
• It seems to me, GM has agreed to complete 2nd tranche (page 9)

Financials:

• Revenue exactly the same as prior Quarter and prior year :-)
  
• Net loss $6.4 mil, higher than LY, but thanks to overall dilution, it is $0.01 per share better.
• So the share price should not plunge this time
• Admin expense are almost double, so is equity compensations to the management. Mr. Evans is apparently having better times than all of us :-). But it is probably all driven by the fact, that LAAC has not taken its portion of cost, post-split.
• Enough cash to keep lights on.

Net, net, the financials are irrelevant. We are nowhere near of production, so LAC suffer mainly from external factors outside of their control: that smart money are gone from the sector, that Spot price of Li2CO3 is below $11 000/tonne, that supply chain in China is overloaded by lithium on all levels and the off-take elsewhere is non-existent, that China does not hesitate to process grabage raw material, that $TSLA is (finally) going downhill and with exception of China, EV segment is not doing exactly grade. Too bad, that all those idiots do not see, that GWh of produced batteries are going up, but that is for another debate.

My outlook: sooner or later LAC is going below $2/share, unless some supply chain miracle appears and price of Li2CO3 reverses. Trump is going to lose the election, my most favourite pathological liar will be finally prosecuted  and Tesla will continue to shrink its revenue/profit. All of which will depress LAC share price. Thank you for reading :-)