Lake Resources
Financials:
Primary ticker: ASX:LKE, OTC:LLKKF
Stage of development: Exploration, Development
Primary minerals: Lithium
Project to promote: Kachi Project
Project location: Argentina
Website: www.lakeresources.com.au
Lake Resources NL (ASX:LKE; OTC:LLKKF) is providing a clean solution to the delivery of high quality lithium into the battery supply chain powering the energy transition to electric vehicles. Lake uses disruptive, direct extraction technology from its partner, Lilac Solutions in California, for efficient production of high purity lithium with significant ESG benefits, demonstrated in a pilot plant.
The flagship Kachi Lithium Brine Project is indicatively financed into production at 50,000 tonnes/year lithium carbonate in 2024 with long dated low cost project finance from the UK Export Finance and Canada’s EDC.
Lake’s ambition is to produce 100,000 tonnes/year of the cleanest battery quality lithium carbonate, with ESG benefits, by 2030 for use in the accelerating battery and electric vehicle (EV) market.
Cash: A$70M (31 Dec 2021)
Debt: NIL
Major shareholders:
Citicorp Nominees – 4.75%
Acuity Capital – 4.57%
Merrill Lynch Nominees – 2.83%
Simon Kalinowski – 1.97%
Steve Promnitz – 1.58%
Management Ownership – ~3%
Management Profile
Stephen Promnitz – Managing Director
Experienced natural resources and finance executive involved in establishing teams and operating in South America, Asia/Pacific and Australia. Currently managing Lake Resources, a clean-tech lithium developer using efficient disruptive clean technology to produce sustainable, high purity lithium from its flagship Kachi Project in Argentina. Previously CEO of mid-tier companies, manager with majors (Rio Tinto, WMC) and director with global banks including Citigroup. He holds a Bachelor of Science Honours (Natural Resources) from Monash University and is fluent in Spanish.
What is your rationale for taking part 121 Mining Investment?
Lake Resources is developing its lithium projects in Argentina and is seeking development partners and off take partners for its Kachi project as they distribute samples from the Lilac pilot plant using direct extraction.
What recent news would you like to highlight to investors attending?
Mar 8 2022 – $39 Million At-The Market Raise
Lake Resources N.L. (ASX:LKE) (“Lake” or “the Company”) is pleased to announce that it has utilised its At-theMarket Subscription Agreement (“ATM”) with Acuity Capital (previously referred to as a Controlled Placement Agreement – see announcements on 31 July 2018, 1 September 2020, 22 September 2020, 27 November 2020, 19 January 2021, 4 June 2021 and 5 November 2021) to raise $39,000,000(inclusive of costs) by agreeing to issue 40,000,000 LKE fully paid ordinary shares to Acuity Capital at an issue price of $0.975 per share.
Mar 3 2022 – Lilac Demonstration Plant being delivered to Kachi Lithium Project
• Demonstration plant assembled and dispatched from California USA to the Kachi Project by Lake Resources’ technical partner, Lilac Solutions, after extensive successful test work.
• Disruptive lithium processing technology cuts operating costs and boosts lithium recovery from Kachi Project brines, while protecting scare water resources.
• Producing high purity product on site further derisks project for offtakers, financiers and investors.
• Test work in California continues to produce data for the Definitive Feasibility Study and product samples for testing
Jan 19 2022 – Kachi Production increased to 50,000 tonnes/year lithium carbonate as Base Case for DFS
• Planned production at Lake’s flagship Kachi Lithium Brine Project will be set at 50,000 tonnes/year (tpa) lithium carbonate in the Definitive Feasibility Study (DFS).
• Supported by demand, financing, host-country investment policies and Lake’s technology partner Lilac Solutions.
Dec 16 2021 – New Drilling at Olaroz, Cauchari & Paso to Expand Lake’s Lithium Projects
• New 10 hole drilling program to test brines from Lake’s other 100 percent owned Olaroz, Cauchari and Paso projects to assess resource potential in Jujuy province, Argentina.
• Brines will be sampled and tested with environmentally friendly lithium extraction processes.
• Program runs in parallel with DFS development at Lake’s flagship Kachi Lithium Project, as Company eyes expanded resource base in response to accelerating lithium demand
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Construction Finance discussions advanced – Capex US$540m.
Kachi – Complete DFS & approvals.
Kachi Production 25,500tpa LCE (End 2023/ H1-2024).
Demonstrate scale up to 50,000 tpa LCE.
Olaroz, Cauchari – Drill, Resource, PFS.
6 Months:
Construction starts – 2024 production, 50,000tpa LCE rate
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Ensuring we have the right partner who requires sustainable, high purity lithium and scalable production to fast track development of our projects to feed into the lithium supply chain.
What do you think makes your company such a compelling investment?
Lake is one of only two near-term new producers of sustainable, high purity lithium in demand by Electric Vehicle makers. The direct lithium extraction technology is supported by some of the best known and largest investors in the world. Lake’s production is being sought after and yet trades currently at a discount to peers.
What are the top key investor takeaways?
1. High Purity Battery Materials – are being sought to avoid performance issues – Lake is one of few near term producers with this desired product at scale.
2. Responsibly Sourced, Traceable, Sustainable Battery Materials – Transition to electric vehicles demands a smaller CO2, water, physical, energy footprint. Lake is one of few near term producers with this ESG benefit.
3. Project Finance indicatively in place – Export Credit Agencies to indicatively debt fund 70% of total project finance over 10 years at low interest rates.