On April 29, lithium stocks rallied on the news of China's recently issued automobile subsidy. Consumers who trade in an older vehicle and buy a new vehicle that meets energy-saving requirements, including electric vehicles, can get a subsidy of up to CNY 10,000 (about $1,381) to reduce the purchase price through the end of 2024.
Lithium Argentina will become a low-cost lithium producer generating profitability regardless of lithium prices.
Lithium prices will fall as new supply comes online faster than demand, which will weigh on profitability. Lithium Argentina’s investment in its two projects will prove value-destructive in the wake of lower prices.
|
Metric
|
LAAC
|
ALTM
|
ALB
|
|---|---|---|---|
Price/Earnings (Normalized) | 166.20 | 5.64 | 10.71 |
Price/Book Value | 1.02 | 1.14 | 1.65 |
Price/Sales | — | 2.50 | 1.83 |
Price/Cash Flow | 0.68 | 5.35 | 10.19 |
|
Metric
|
LAAC
|
ALTM
|
ALB
|
|---|---|---|---|
Quick Ratio | 8.70 | 1.90 | 1.64 |
Current Ratio | 9.16 | 3.46 | 2.84 |
Interest Coverage | −0.06 | — | −7.94 |
|
Metric
|
LAAC
|
ALTM
|
ALB
|
|---|---|---|---|
Return on Assets (Normalized) | 0.39% | 18.77% | 7.72% |
Return on Equity (Normalized) | 0.49% | 26.41% | 15.06% |
Return on Invested Capital (Normalized) | −1.09% | 22.73% | 10.72% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BHPLF
| BHP Group Ltd | XR | Wsprdc | $144.8 Bil | |
BHP
| BHP Group Ltd ADR | Ptycljm | Hxzc | $144.8 Bil | |
RTNTF
| Rio Tinto Ltd | — | Ccmzy | $139.3 Bil | |
RIO
| Rio Tinto PLC ADR | Hnnwxhf | Dsrd | $114.0 Bil | |
VALE
| Vale SA ADR | Pfqcs | Qyns | $54.0 Bil | |
NGLOY
| Anglo American PLC ADR | Scvktyy | Yfcv | $44.4 Bil | |
TECK
| Teck Resources Ltd Class B (Sub Voting) | Ltpsjqskl | Dld | $25.7 Bil | |
LAC
| Lithium Americas Corp | Kqcrxpzry | Cznn | $991.2 Mil | |
CMP
| Compass Minerals International Inc | Kspyqwlh | Mckxyz | $556.1 Mil |
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