Lithium Americas Corp (LAAC)

[Psyban]

SQM reports EPS tonight. Important for LAC investors.

Investor days are usually designed to talk about positives so I expect overall good news tonight re SQM's earnings call.

Since the announcement of the LAC-SQM deal, there has been limited information flow about the Cauchari project. A recent poster suggested SQM may lay out some very exciting plans for Cauchari at its investor day. They are already in the press saying that Cauchari could be 40,000 tons per year of lithium. A great question was asked; Could they go larger? Does larger bring the costs down substantially due to economies of scale? If SQM were to announce a 50,000 ton per year operation at Cauchari, then this could be the biggest, lowest cost operation in the world. This would be a big positive for LAC that is not currently reflected in the stock price.

From a regulatory standpoint, if they were to suggest that Cauchari will produce greater than 40k tons, that's material information and they would be required to disclose that info on the conference call tonight, so we may see activity in LAC before the investor day next week. If Cauchari estimates move to 25% more than currently expected, the sell-side will raise LAC targets. Institutions digest earnings numbers then meet 1 on 1 with SQM management next week. Wonder if LAC will be in NYC too. Either way - if this happens - LAC NAV moves higher as well as its price multiple.