Lake Resources

Primary ticker: ASX:LKE
Stage of development: Development
Commodity: Lithium
Project to promote: Kachi Project

Live financials

Lake Resources (ASX:LKE) is Australian listed, developing four lithium projects in Argentina’s Lithium Triangle, where half of the world’s lithium is produced at the lowest cost. Lake has the largest lithium lease holding in Argentina of over 2,000 sq km ,100% owned.
Pre-production of lithium products is scheduled in early 2020 from a pilot plant using an efficient direct extraction process for high purity lithium carbonate or hydroxide from the Kachi lithium brine project. The Kachi Project hosts a JORC resource of 4.4Mt of contained lithium carbonate equivalent (LCE), one of the world’s top 10 brine resources, 100km south of FMC/Livent’s producing lithium brine operation. Lake successfully drilled the Cauchari project this year locating high grade lithium brines extending from the adjoining Lithium America’s Cauchari Project.

Management Profile

Steve Promnitz, Managing Director

Stephen Promnitz joined Lake as Managing Director in November 2016. Prior to Lake, Stephen was CEO or 2IC of listed Australian gold miners, including Kingsgate Consolidated, with assets in Chile and Thailand. Before this time, he held senior corporate finance roles including with Citibank. He started his career as a geologist with Rio Tinto before managing Western Mining Corporation’s mining operations in Argentina.

What is your rationale for attending 121 Mining Investment?

Lake Resources is progressing its four lithium projects in Argentina and is currently seeking cornerstone investors and development partners for its Kachi project as well as potential off take partners as their lithium projects advance.

What recent news would you like to highlight to investors attending?

23/09/2019 Lake Targets 2020 Pre-Production with Pilot Plant Construction
04/09/2019 Lake raises $2m in Placement
23/08/2019 Cauchari 506M High Grade Lithium Brine Discovery
25/07/2019 Higher Lithium Grades Wider Interval at Cauchari
15/07/2019 Cauchari Discovery Multiple Lithium Zones
07/05/2019 Pilot Plant Engineering underway at Kachi Lithium Project

What is the focus of your management team for the next 12 months, and what are the key milestones you are looking to reach that you think will add value to the business?

3 Month:

Pre-Feasibility Study Completed at Kachi Project

6 Month:

Samples from Pilot Plant in qualification process with Cathode/Battery makers

12 Month:

Development partner and off-takers confirmed after pilot plant samples tested

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 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?

We are currently trading at a significant discount to three different analysts valuation on our projects from North America, UK and Australia. The direct extraction method allows for rapid, efficient development producing a premium product which is desired in the downstream battery market despite recent lithium pricing weakness.