Lithium Americas Corp. (LAC) stock prices were down by 4.69% as of the market closing on July 23rd, 2021, bringing the price per share down to USD$13.01. Subsequent premarket fluctuations have seen the stock rise by 10.53%, bringing it up to USD$14.38.
LAC Stock Regains Excavation Approval
July 24th 2021 saw Lithium Americas Corp gain approval from a U.S federal judge ruling for the continuation of its excavation work. LAC stock is set to resume excavating at the Thacker Pass lithium mining site in Nevada. LAC came across a hiccup when environmental lobbyists claimed the company’s activity could harm sage grouse and other wildlife. This is in line with increasing pressure from environmental groups to courts and regulators in attempts to block mining projects. The favorable ruling was a rare win for critical U.S mineral projects, some of which produce metals essential for building electric vehicles.
LAC Excavation in Limbo
The excavation project was given the green light by the Trump administration in January of 2021. Continued digging has been allowed while the courts determine the lands historical import for Native Americans. The judge handling the case has said she expects to publish her decision in early 2022. As a part of the deliberations, LAC stock paused its digging operations until July 29th, 2021.
Hopeful for Positive Outcome
A major factor in the consideration of the case is the size of the land being affected. With a meagre quarter of an acre possibly being affected in a project that spans 18,000 acres, this will play a contributing role in the ultimate decision. Furthermore, those opposing the excavation have not yet been able to concretely prove what specific damage the digging executed by LAC stock will cause.
Clash with Environmentalists
With only hypothetical guesses to go on, the court places the onus of proof on environmentalists to show the potentially irreparable damage. The environmental groups that sued to block the project have expressed their disappointment in the court’s ruling. One of their main concerns besides the wildlife is the removal of cultural and historical artifacts. The lobbying groups expect to continue challenging LAC stock in order to facilitate the cancellation of the entire project.
Future Outlook for LAC Stock
Armed with the positive development of the excavation project, LAC stock finds its outlook considerably brighter. The company is poised to continue its trajectory of success as it continues pushing for the continual development of its digging operations. Investors are hopeful for long-term gains in shareholder value as LAC carries on effectively executing its business strategy.
