Does ASX 200 Share Lake Resources Still Sell Lithium?


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Lake NL Resources (ASX: LKE) is one of S&P/ASX 200 Index (ASX:XJO) most recent lithium stockshaving joined the iconic index in June.

The company operates its flagship Kachi Project, located in the Argentine Lithium Triangle. Interestingly, no mining should ever be done in Kachi.

Instead, the company is working to extract the lithium from the project’s brine using direct extraction technology from its partner Lilac Solutions.

But does Lake Resources still sell lithium? And if not, when will it start? We’ll take a look.

Currently, shares of Lake Resources are trading at $1.07.

Does ASX 200 shares Lake Resources sell lithium?

Unfortunately for investors looking to produce ASX 200 lithium stocks, Lake Resources doesn’t quite fit the bill. However, hope is on the horizon.

Kachi Lithium Processing Demonstration Plant began to process brine earlier this month. More excitingly, it has already delivered an on-spec product and achieved 80% lithium recovery.

Lithium chloride from the demonstration plant is expected to be converted into lithium carbonate and qualified by a Tier 1 battery manufacturer in the near future. Previous pilot plant activities have lithium product with a purity of 99.97%.

The next stage will see the demonstration plant move to a stable state before being validated by a third party. This will allow it to complete its definitive feasibility study.

The project aims for 50,000 tons of production per year in the future.

This has already been retrieved under conditional agreements with WMC Energy and SK On, for periods of 10 years and 5 years respectively.

Lake Resources is expected to make a final investment decision on the project next year. Of course, this means that the first sale of Kachi lithium is probably still a long way off.

There is, however, one factor that might soothe the market’s spirit. The ASX 200 lithium stock does not hold any debt. And this despite the fact that it burns money without any noticeable income.

Lake Resources had $158.9 million in cash at the end of September. It recorded a cash outflow of $9 million from operating activities for September quarter.

In addition, the Kachi project pre-feasibility study thought it could be a high margin project, with a earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 62% and operating costs of US$4,178 per tonne.


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