Cutting|Financial|Gas|Oil And Gas|PROJECT|Resources
Cutting|Financial|Gas|Oil And Gas|PROJECT|Resources

Lake Resources deepens cost-cutting actions

4th March 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


Font size: - +

Lithium developer Lake Resources on Monday announced further cost reductions to extend its financial runway and better position the company to complete a strategic partner selection process for its Kachi project, in Argentina.

The ASX-listed company previously announced a 40% reduction in expenditure for the March quarter, but is now implementing further savings. These include reducing its workforce by 50% across its noncore operational and administrative staff and additional streamlining of other general and administrative expenditures.

As a result of these actions, Lake expects a 30% reduction in expenditure in the June quarter, compared with the March quarter.

“We are committed to taking all necessary actions to preserve our financial flexibility while we execute a thorough and prudent strategic partner selection process that results in the best outcome for Lake and its shareholders,” said CEO David Dickson.

Goldman Sachs is acting as financial adviser to find a strategic partner for Kachi. Lake has reached out to a wide array of potential partners, including car and battery manufacturers, lithium producers, oil and gas companies, sovereign wealth funds and private equity.

The company expects the process to conclude in the second half of the 2024 calendar year, with a final investment decision to follow about nine to 12 months thereafter.

Dickson stated that Lake planned to deliver the Kachi project in 2028, which would align with the start of a prolonged period of structural deficit for battery-grade lithium chemicals.

A definitive feasibility study (DFS) for Phase 1 of the Kachi brine project has shown strong and competitive economics. The DFS estimates a post-tax net present value of $2.3-billion and an internal rate of return of 21%. The Phase 1 development is estimated to require an initial capital expenditure of $1.38-billion.

Kachi's total resource is estimated at 10.6-million tonnes of lithium carbonate equivalent and the project has a projected mine life of 25 years. Phase 1 is expected to deliver 25 000 t/y of lithium.

Edited by Creamer Media Reporter




John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...


Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.112 0.149s - 108pq - 2rq
1: United States
Subscribe Now
2: United States