The Lake Resources N.L. (ASX: LKE) share price has ended the week in a disappointing fashion.
The heavily shorted lithium developer's shares fell 6.5% to 98.5 cents.
Image source: Getty Images
Why did the Lake Resources share price tumble?
Although the company released its annual report after the market close yesterday, there was nothing notable in it to explain the fall today.
Instead, the weakness in the Lake Resources share price on Friday appears to have been driven by broad market selling. Particularly given how the selling has been strongest in the materials sector and with higher risk shares.
And Lake Resources certainly ticks those two boxes. With the company betting on an unproven technology being the answer to its prayers at the Kachi Lithium Project in Argentina, it has a big and uncertain 12 months ahead.
This was outlined in its annual report, with management explaining:
A number of milestones lie ahead for Lake in fiscal 2022, including first production from the demonstration plant at Kachi, the successful completion of the DFS, an Environmental and Social Impact Assessment (ESIA) and the delivery of our first ever Sustainability Report. Yet with supportive financiers and investors, an experienced team at the helm and very strong demand for our product, I have every confidence we have an outstanding year ahead.
Time will tell if Lake has an "outstanding year," but with 8.7% of its shares held short, a lot of investors are definitely betting that it won't.
