LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) On A Tremendous Bull Run

The share price of LITHIUM AMERICAS C COM NPV (OTCMKTS:LACDF) keeps going up. We have written a long list of articles about the stock repeating that its announcements should be followed closely. The company has promising projects, a solid balance sheet, and remarkable market participants owning big stakes in it.In October, the share price went up from approximately $1.25 to cross the $1.58 share price level. It is more than 25% stock returns in only one month, whereas approximately 110% stock returns if we compare with the share price in June 2017. 1 year chart for LACDFWhat happened?In October, a long list of documents including a new quarterly report, a new updated feasibility study, and other technical materials were delivered to the market.In our opinion, market participants continue to appreciate the solid financial situation of LACDF. Additionally, the market appreciated supplemental information received about the project in Argentina. Once the market digested the information, the share price took off. Have a look at it before we provide more details in this article: 1 month chart for LACDFFor those who are learning about the company now, we are reviewing briefly its business objective. LACDF, which is based in British Colombia, Canada, is focused on the development of lithium mines. Its most well known projects are located in Argentina and north-western Nevada. Company LogoFurthermore, if this is the first time that you are hearing about the opportunities in the lithium business, listen carefully. The large amount of sales of laptops, mobile phones, electric vehicles and other devices has recently increased the demand of lithium in the world. We have reviewed many companies dealing with lithium mines. They are all being pumped up. LACDF is a big winner, but there are many others that you may appreciate.Recent DevelopmentsAfter the release of our most recent article, the company filed many documents on the OTC Markets website, which you can consult here. Many of them are updates and old documents that should not create any reaction on the share price. We will talk about the most relevant ones only.On October 12, 2017, an interim report for the period ended December 31, 2016 was released. We would like to note the balance sheet at that time and compare it with its state right now. It is surprising. The following are the assets and liabilities on December 31, 2016:

• Cash and Cash Equivalents: $8 million
• Total Assets: $45 million
• Total Liabilities: $2.8 million

On the same day, the market received the financial statements for the period ended June 30, 2016. Have a look at the same financial figures:

• Cash and Cash Equivalents: $49 million
• Total Assets: $86 million
• Total Liabilities: $3.1 million

Additionally, on October 12, 2017, the market received a technical report, wherein we could read a more concrete report regarding the project in Argentina. We believe that the most interesting, what everybody wanted to see, is the following image, wherein the reserves are highlighted: Updated Feasibility Study of LITHIUM AMERICAS C COM NPV OTCMKTS:LACDFAdditionally, the company noted that the profits from this project are expected to be extraordinary. The following economic figures are interesting:

• IRR: 33%-23.5%
• Payback: 3 to 4 years
• EBITDA: From $282 million to $184 million

In addition, we continue to see big shareholders holding shares of the company:HolderSharesDate Reported% OutValueVanEck Vectors ETF Tr-Rare Earth/Strategic Metals ETF3,254,477Jun 29, 20170.74%2,213,044Global X Fds-Global X Lithium ETF3,174,330Jun 29, 20170.72%2,158,544BlackRock Global SmallCap Fund1,178,423Mar 30, 20170.27%824,896SourceAdditionally, a small amount of market participants is short the stock. According to OTC Markets, only 2.6% of the total outstanding shares is shorted.Finally, Morningstar recently issued a report, wherein the fair value was said to be $1.67. Going back to the stock chart, we see that the share price jumped up on October 19, 2017, when the report was released.ConclusionCurrently trading with a market cap of $479 million, LACDF is an exciting story among small caps. We believe that the company is a hidden gem and many market participants are not studying it, because it trades in the OTC Markets. The report from Morningstar or the fact that PricewaterhouseCoopers is the auditor shows that it is a very serious company.Additionally, we continue to believe that the market is not correctly valuing the lithium project in Argentina. If it is expected to return that type of IRR, the share price should be valued even more. To sum up, there's a lot to like with LACDF. After all, it's a name we've been bullish on since the stock was $.75 a share.We will updating out subscribers as soon as we know more. For the latest updates on LACDF, sign up below!For the full story, check out our complete coverage on LACDF.Image courtesy of Xavier via FlickrDisclosure: We have no position in LACDF and have not been compensated for this article.