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The Lake NL Resources (ASX: LKE) the stock price ended the week on a disappointing note.
Shares of the heavily shorted lithium developer fell 6.5% to 98.5 cents.
Why did the Lake Resources stock price drop?
Although the company has released its Annual Report after the market closed yesterday, there was nothing of note to explain today’s drop.
Instead, Friday’s weakness in Lake Resources’ stock price appears to have been driven by a broad sell-off in the market. Especially given that sales were strongest in the materials sector and with higher risk shares.
And Lake Resources certainly ticks both of those boxes. While the company is betting on an unproven technology as an answer to its prayers at the Kachi Lithium project in Argentina, it still has an important and uncertain 12 months ahead of it.
This was described in its annual report, with management explaining:
A number of milestones are ahead for Lake in fiscal 2022, including first production from the Kachi demonstration plant, successful completion of EFD, an environmental and social impact assessment (ESIA) and the delivery of our very first sustainability report. Still, with supportive financiers and investors, an experienced team at the helm and very strong demand for our product, I am confident we have an exceptional year ahead.
Time will tell if Lake has a “bumper year,” but with 8.7% of its shares held short, many investors are definitely betting it won’t.