LITHIUM AMERICAS C (OTCMKTS:LACDD) Stepping Up To The Big Leagues

Today, we are going to talk once again about a business profile that has delivered outstanding returns this year. It is LITHIUM AMERICAS C (OTCMKTS:LACDD), which runs lithium projects in Argentina and Nevada.We covered this name several times in the past, when the ticker was "LACDF."We said very good things about it.It had a great financial situation and its returns were expected to be after-tax IRR 28.4% in 3 years and 5 months.Additionally, it had respected PricewaterhouseCoopers LLP as its auditor. Finally, we appreciated that the President of Argentina was familiar with the project.We believe that we were not wrong in saying all that. LACDD LogoThe readers who were able to get in on the back of our articles are very happy with the returns.Have a look at the share price action in the following stock chart: 1 year chart for LACDDLet's revisit the company's business model for those who may not know the lithium opportunity yet.Laptops, smart phones and electric cars need electric batteries to function and these batteries require a lot of lithium to be manufactured. Thus, the demand for lithium in the past years has exploded and lithium price has increased.LITHIUM AMERICAS C (OTCMKTS:LACDD) is trying to profit from this opportunity by developing lithium mines wherever lithium is hidden. The flagship project is located in Argentina, which is called the Cauchari-Olaroz lithium project.Watch the following video, wherein the project in Argentina is explained:https://youtu.be/OR5qCE-sGfkSourceRecent DevelopmentsSince our last piece called "LACDF On A Tremendous Bull Run" was published in October, something very interesting has been announced.On November 3, 2017, the company noted a share consolidation and an application for listing on the NYSE American Stock Exchange. It is a great news. If it is accepted, the company will be able to find cheaper financing and its reputation will grow. Additionally, it will be able to execute transaction in an easier manner.Let's assess the news.What's the share consolidation?The company decided to diminish the amount of shares. One new common share is equal to five shares. This means that the amount of shares outstanding diminished from 442,281,126 common shares to 88,456,225 shares outstanding.We believe that the business decision was smart. It resulted into an increase in the share price, which is much more appropriate for trading on the NYSE.Lithium America's CEO, Tom Hodgson, said the following about the NYSE:

"We look forward to a U.S. listing for Lithium Americas. We believe the share consolidation and U.S. listing will improve trading liquidity of our common shares and enable us to broaden our shareholder base." Source

When will shares trade on the NYSE?In the press release, it was highlighted that after all the required approvals are received, it is expected that the NYSE will welcome the company before the end of 2017.What may happen then?Usually, the share price increases when the announcement is made. This is what, we believe, will happen and what research shows:

"It is contended that a stock should rise in price, relative to the market, after the announcement to list and should continue to rise through the time it is listed and first traded on the exchange" Journal of Finance

The project in ArgentinaLike we did in other articles, we want to note once again the expected returns that the company expects to obtain in Argentina. Other articles have been published in other sites, like Seeking Alpha, about this project. We all highlight that the IRR returns are extraordinary:

• Project capital costs: $425 million
• Operating costs: $2,495/t Li2CO3
• Average annual EBITDA: $233 million
• Pre-tax NPV 10% discount: $1,266 million
• After-tax NPV 10% discount: $803 million
• Pre-tax IRR: 34.0%
• After-tax IRR: 28.4%
• Payback period: 3 years, 5 months

Financials and Market participantsWe believe that it is good once again to show the strong balance sheet of the company. Have a look:

• Total cash: $49 million
• Property Plant and Equipment: $19 million
• Total assets: $86 million
• Total long term debt: $0.8 million
• Total liabilities: $3.1 million

Additionally, the following are some market participants who bought big stakes:

HolderSharesDate Reported% OutValueVanEck Vectors ETF Tr-Rare Earth/Strategic Metals ETF3,862,236Jul 30, 20170.88%3,051,166Global X Fds-Global X Lithium ETF3,621,976Jul 30, 20170.82%2,861,361BlackRock Global SmallCap Fund1,178,423Mar 30, 20170.27%824,896U.S. Global Investors Fund-World Precious Minerals Fund750,000Mar 30, 20170.17%524,999Managed Account Ser-Advantage Global Small Cap Fund160,285Apr 29, 20170.04%110,596Source

ConclusionCurrently trading with a market cap of $678 million, LACDD is an exciting story among small caps. The company continues to grow its business and is making great decisions in terms of financing.If the company trades on the NYSE, look for shares to keep running. To sum up, there continues to be a lot to like on this name and we congratulate all those that got in early on the back of our coverage.For the full story, check out our complete coverage on LACDD!We will be updating our subscribers as soon as we know more. For the latest updates on LACDD, sign up below!Image courtesy of Dimitry B. via FlickrDisclosure: We have no position in LACDD and have not been compensated for this article.