Lithium Americas Corp (LAAC)

[info-trex]

If we apply total Lithium Carbonate production in 2020 at 425,000 tons

If LAC/LACDF is 10% share of world production at average retail of $16,500/tonne this comes to gross sales for LAC of $595,212,000.

Gross margin of 54.6% comes to $325,202,000
Take out selling GA and interest depreciation, taxes - 10%
That Leaves Earnings to apply to shares of 292,682,000

The 10-15% profit of gross sales is not a true reflection of pricing at 16,500 levels.

If shares are at 411,970,000 then EPS is $0.71
If shares are at 1,000,000,000 then EPS is 0.293

If we apply a 19 PE ratio to these EPS then 2020 targets are: 13.50 / 5.56
If we apply a dismal 10 PE ratio then 2020 targets are: 7.10 / 2.93