Why Lithium Americas Stock Crashed Today
Shares of lithium miner Lithium Americas (NYSE: LAC) crashed on Tuesday, ending the session down by 5.2% after having been off by almost 10% earlier in the day. Investors were reacting to both the company's quarterly numbers and an analyst's downgrade.
Lithium Americas suffered a net loss of $17.2 million in the third quarter, deeper than its net loss of $6.5 million in the year-ago quarter. While consensus estimates had called for a loss of $0.08 per share, it ended up reporting a loss of $0.14 per share as it spent more heavily than expected on its Thacker Pass mine in Nevada.
That's not necessarily a bad thing. Thacker Pass is thus far the largest known lithium resource in the U.S. The mine has faced opposition from ranchers, indigenous tribes, and environmental groups, but it is nonetheless inching closer to construction, having received most of the necessary permits from regulators. Lithium Americas now expects to start early-works construction in the first half of 2022, and said it is in discussions with potential partners and customers.
Source Fool.com
