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: AUD$175M (as of 30 Jun 2022)
Debt: NIL

Major shareholders:

Citicorp Nominees – 13.62%
BNP Paribas Noms Pty Ltd (DRP) – 3.93%
HSBC Custody Nominees (Australia) Limited – 3.79%
Merrill Lynch (Australia) Nominees Pty Ltd – 3.36%
Acuity Capital – 2.98%

Management Profile

Stu Crow, Executive Chairman
Stuart has global experience in financial services, corporate finance, investor relations, international markets, salary packaging and stock broking.
 
Stuart is passionate about assisting emerging listed companies to attract investors and capital and has owned and operated his own businesses.

What is your rationale for taking part in 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?

2 Nov 2022 – Lilac Solutions demonstration plant delivers “at spec” product from Kachi project

• Initial test work delivers “at spec” product from Kachi demonstration plant.

• Kachi brine test work underway, commission phase completed.

• One month after wet commissioning already achieving 80 percent lithium recoveries.

• Plant optimisation work underway.

• Third Party Validation by Hatch to commence shortly to allow DFS completion.

• Continued de-risking of the project for financiers and investors

 

12 Oct 2022 – Strategic investment and offtake agreement with SK On

Lake Resources and SK On execute Conditional Framework Agreement (CFA) involving a 10 percent strategic investment in Lake Resources and offtake for up to 25,000tpa battery grade lithium (LCE) from Kachi Project subject to a set of conditions under the CFA. Offtake of up to 25,000 tonnes per annum of high purity lithium from the Kachi Project.

 

•SK On to acquire 10 percent of Lake via strategic investment underpinning the development

of a Clean Lithium Supply Chain to meet the global environmental demands for Electric

Vehicles particularly in North America.

•Continued de-risking of the project for financiers and investors.

 

6 Oct 2022 – Strategic investment and offtake agreement with WMC Energy

Lake Resources and WMC Energy execute Conditional Framework Agreement involving a 10

percent strategic investment in Lake Resources and offtake for up to 25,000 metric tons per

annum (mtpa) battery grade lithium (LCE) from Kachi Project

 

• Offtake of up to 25,000 tonnes per annum of battery grade lithium from the Kachi Project.

• WMC Energy to acquire 10 percent of Lake underpinning the development of a Clean

Lithium Supply Chain to meet the global environmental demands for electric vehicles

particularly in Europe and North America.

• Continued de-risking of the project for financiers and investors

 

19 Sep 2022 – Lake Updates Kachi Demonstration Plant Activity

Lake Resources NL (Lake) advises that work proceeds with Lilac Solutions, Inc. (Lilac) on site at the Kachi Project in Argentina, with commissioning now underway on the demonstration plant.

What are your key goals in 3 months, 6 months, 12 months?

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 3 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.