Is ASX 200 lithium player Lake Resources profitable?

The company boasted a strong cash position and no debt at the end of FY22.

Key points
  • Lake Resources was added to the ASX 200 earlier this year, cementing it as one of the market's biggest lithium players
  • But the company hasn't yet turned a profit, instead posting a $5.7 million loss for financial year 2022
  • However, it closed June with $175 million in cash and no debt

Lithium has been the talk of the S&P/ASX 200 Index (ASX: XJO) in 2022, and shares in Lake Resources NL (ASX: LKE) have received particular attention.

The company was added to the iconic index in June after its value surged by more than 40% over the first six months of the year. Since then, it has fallen by around 20% amid its boss' resignation, a short seller attack, and a dispute between the company and its joint venture partner.

The Lake Resources share price is $1.037 at the time of writing.

But is the ASX 200 lithium share profitable? Keep reading to find out.

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.

Image source: Getty Images

Is ASX 200 lithium share Lake Resources profitable?

Those hopeful Lake Resources could be a profitable ASX 200 lithium share will be disappointed to learn it's still operating in the red.

The majority of the company's efforts go towards its wholly owned Kachi Lithium Brine Project, located in Argentina.

The project is expected to produce 50,000 tonnes of battery-quality lithium carbonate each year, as per its pre-feasibility study.

The company is also looking to double the project's capacity. It's pushing on with a drill campaign to help support its case.

But exploration and development bring plenty of costs. And, as the company isn't producing any lithium to sell, it doesn't yet have any income.

The company posted a $5.68 million loss for financial year 2022 ­– representing a 51-cent loss per share.

It also revealed an outflow from operating activities amounting to $8.68 million for the 12 months ended 30 June. Though, Lake Resources received $174 million from issuing shares.

All in all, the company ended last financial year with $175.4 million of cash and no debt. That leaves it financed through to the final investment decision on the Kachi Project.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Two business men looking at financial data, charts, and graphs on a digital tablet and a laptop computer.
Materials Shares

Alcoa posts higher net income, sets sights on AliGroup completion

Alcoa reported third quarter 2026 results, with higher net income and progress on the AliGroup acquisition.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Materials Shares

Orora FY26 earnings: Cans strong, Glass under pressure

Orora's FY26 results show strength in Cans but ongoing challenges for Glass, including a substantial non-cash impairment.

Read more »

Three people at a building site discussing a plan whilst eating.
Materials Shares

Fletcher Building posts higher volumes in Q1 FY27, residential lags

Fletcher Building posted Q1 FY27 sales volume growth in several key business units, though residential activity stayed challenging.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Materials Shares

2 ASX lithium shares to buy with 38% to 120% upside

Bell Potter sees potential for these shares to rise strongly over the next 12 months.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Materials Shares

Why are Lynas Rare Earths shares crashing 6% today?

Are Lynas Rare Earths shares a buy, sell, or hold now?

Read more »

Businessman planning and analysing investment data.
Materials Shares

Forget PLS, this ASX lithium stock could rise 80%

Is this lithium miner about to roar higher? Here's what Bell Potter is predicting.

Read more »

Couple using their digital tablet together.
Materials Shares

Orica updates on North American supply and land sales

Orica secures key North American supply and updates on land sales, supporting future growth and shareholder value.

Read more »

Man analysing data on his laptop.
Materials Shares

Forget BHP and buy this ASX copper stock

Bell Potter thinks there could be big returns on offer from this stock.

Read more »