The lithium developer had a busy 3 months ended 31 March, and the market is reacting positively to its report.
At the time of writing, the Lake Resources share price is flat with its previous close, trading at $2.20. However, earlier today, it reached a high of $2.35, representing a 6.8% gain.
Additionally, while the broader market is enjoying a day in the sun – the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) have gained 0.34% and 0.41% respectively – many of the lithium stock’s peers are struggling.
The S&P/ASX 200 Materials Index (ASX: XMJ) is slumping 0.91% right now.
So, what’s driving the lithium developer’s share price to outperform its sector? Let’s take a look.
Lake Resources share price up on quarterly report
The Lake Resources share 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 Japan’s Hanwa, doubled the production base of its Kachi Lithium Project, and made progress on the project’s demonstration plant.
On top of that, it launched its TARGET 100 Program. The program aims to see Lake Resources produce 100,000 tonnes of lithium annually from the projects by 2030.
Finally, the company continued progressing discussions that could see debt finance provided for Kachi by UK Export Finance and Export Development Canada. The finance could provide around 70% of the cash needed for Kachi’s expanded production.
As of 31 March, Lake Resources held $111 million of cash and no debt. Its strong cash position was helped along by a $39 million capital raise performed in March.
That sees it financed through to the final investment decision and construction finance phase.
The Lake Resources share price gained 98% last quarter.