The news- induced stock price rally of Lithium Americas Corp (TSE:LAC) (PINK:LHMAF) started showing weakness by the end of the week.
LAC ended the last trading session flat, despite heavy price volatility over the previous two days. The stock price didn’t manage to stay above its 200-day moving average of $1.64 per share. It was a rather natural market reaction to expect since LAC has traded below this indicator for nearly half a year and thus made a pretty strong resistance out of it.
The stock price still holds the nearly 45% premium it gained over the last week of trading, therefore it has a lot of space for selloff. On the other hand, there was substantial news that got the price running, so some of the profits are likely to stick for longer.
On November 8, Lithium Americas said in a statement they have completed the construction of pilot plant and already started production of battery grade lithium carbonate.
The facility was built in Lakefield, Ontario and should be producing around 30 kilograms of lithium carbonate per day. The plant is currently on pilot production which is expected to continue throughout 2012. The plant should later be shipped to the Cauchari-Olaroz project site where it would start industrial scale production.
