The simple answer is – nothing. When you look at Q2 result, you can clearly see (at the end of the presentation), that Cauchari-Olaroz has not moved at all and the Thacker Pass is still a power point presentation based on the preliminary FS.

However, many stock in these days do trade not on actual results, but on bright future. Tesla is a classic example of this trend – a minor producers of low-quality cars has achieved valuation of Toyota, which make the same amount of car as Tesla in about a week or so. Musk is able to picture the future so colorfully, that especially the younger population gets excited. And since nobody reads financial reports anyway, that is what sells.

You can see the same on TOB, everyone talks about LAC being, in some distant future the greatest Lithium producer in the US and as a bonus, it is in a close proximity of Tesla. What else they need to know?

Nobody cares, that Lithium is at all time low at the moment, that C-O has not progressed in entire quarter and that LAC is likely not sure, how to scale up conversion of “mud” into Lithium. Their only research is reading articles about “EV powered planes” and new “giga” factories. The more advanced one actually did read the Q2 letter to investors to confirm that everything is in order.

Just accept the fact, that LAC is becoming a “hot” stock, where conventional metrics of a mining company do not apply. On Friday, I got really perplexed to see, that quite few people was buying LAC for almost $9/shares. Some of the blocks were 2000 shares. Should this madness continue, then  $60/share, I was mentioning here some time ago is just few months away. In this environment a carefully worded DFS could easily do the trick. Eventually Evans would not need a financing partner at all. He can just issue new shares.

Everything is possible, assuming that FED will continue to print new money. Once they stop, the party is over. No more subsidies to EVs. My answer to this is a rolling “stop loss” order maybe 15% below current LAC price to protect recent gains. Cheers.