Why is Lake Resources stock price beating its sector today?

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the Lake NL Resources (ASX:LKE) The stock price outperformed on Thursday after the release of the company’s quarterly business and cash flow report.

The lithium developer had a busy 3 months ending March 31, and the market is reacting positively to its report.

At the time of writing, Lake Resources stock price is flat with its previous close, trading at $2.20. However, earlier today it hit a high of $2.35, representing a gain of 6.8%.

Additionally, as the broader market benefits from a day in the sun – the Index of all ordinaries (ASX: XAO) and the S&P/ASX 200 Index (ASX:XJO) gained 0.34% and 0.41% respectively – many peers in the lithium stock are struggling.

the S&P/ASX 200 Materials Index (ASX:XMJ) is down 0.91% right now.

So what is driving the lithium developer’s stock price to outperform its sector? We’ll take a look.

Lake Resources share price up according to quarterly report

Lake Resources’ stock price is doing well after the company released its report for a busy March quarter.

Over the period, Lake Resources signed offtake agreements with Ford Motor Company and the Japanese company Hanwa, doubled the production base of its Kachi Lithium Projectand advances the project’s demonstration plant.

The company also continued drilling to advance the development of its lithium brine projects at Olaroz, Nightmareand Notin Argentina.

In addition to this, it has launched its TARGET 100 program. The program aims to see Lake Resources producing 100,000 tonnes of lithium per year from the projects by 2030.

Finally, the company continued discussions which could see debt financing provided to Kachi by UK Export Finance and Export Development Canada. The financing could provide approximately 70% of the cash needed to expand Kachi’s production.

As of March 31, Lake Resources held $111 million in cash and no debt. Its strong cash position was helped by a $39 million capital raise completed in March.

It is thus financed until the final investment decision and the construction financing phase.

Lake Resources’ stock price has gained 98% in the last quarter.

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