The Lake Resources N.L. (ASX: LKE) share price is enjoying a day in the green after the company released its March quarter update.
Investors appear pleased with the report, which shows the clean lithium producer is flush with cash and financing options and has no debt on its books.
The Lake Resources share price has hit an intraday high of 44 cents, up 4.76% on yesterday's close.
Let's take a closer look at the numbers.
Lake Resources share price lifts off 52-week low
Today's bump in the Lake Resources share price is welcome news for shareholders after the ASX lithium share hit a new 52-week low yesterday.
Here are the key points:
- Cash and cash equivalents of $113,310,00 as of 31 March
- Unused financing facilities of $206,200,000
- Funding for 15.5 quarters available
Lake Resources says it is "well-funded" as it continues to progress its flagship Kachi project in Argentina.
What else happened during the quarter?
Going clean
Lake's biggest advancement during the quarter was receiving independent verification of above 99.8% grades and purity for lithium carbonate produced at Kachi Project using its ion exchange DLE technology.
The Lake Resources share price went up 6.7% on the news.
Lake Resources CEO David Dickson said this was "a new process now proven". This was an important development as it debunked one of the concerns raised by United States short-seller J Capital.
The DLE technology is essential to Lake Resources establishing itself as a cleaner lithium producer.
In its statement, the company said Project Kachi was "poised to lead the industry in the production of high-quality lithium with minimal environmental footprint".
Lake Resources continued to work on its definitive feasibility study for producing 50,000 tonnes of lithium carbonate per year. It expects to complete the study by mid-2023.
New leaders on board
The company welcomed two corporate recruits during the quarter.
Gentry Brann joined the company as chief people and administration officer. She has 25 years of HR experience and previously worked at energy industry engineering services provider McDermott.
The company also appointed energy industry lawyer, Amalia Sáenz, as Argentina country Manager and head of Argentina corporate affairs.
Based in Argentina's capital, Buenos Aires, Sáenz has served on Lake's board as a non-executive director since July 2021 and has significant expertise in Argentine regulatory affairs.
She was previously a partner at law firm, Zang, Bergel & Viñes in Buenos Aires, where she led the firm's energy and natural resources practice.
What did management say?
In its statement, the company said:
Lake continues to make good progress in its transition from the evaluation and exploration phase to the next stage of development.
With the ongoing recruitment of talented experts, the realignment and new focus of the organization and the enrichment of the Lake Board, Lake is well positioned to complete the development of Kachi, while pursuing the development of Cauchari, Olaroz and Paso.
What's next?
Earlier this month, Lake Resources announced another "major milestone" for Kachi with first production of 2,500kg of lithium carbonate equivalents (LCE).
In a joint statement from Lake and its DLE technology partner, Californian company Lilac Solutions, the two company CEOs commented:
Today, we've proven that it is possible to produce high-purity lithium faster and without evaporation ponds – all while protecting surrounding communities and ecosystems.
Investors were impressed with the Lake Resources share price soaring 19.5% on the day.
Lake Resources said Kachi is now "on track to move from its pilot phase into commercial-scale development".
It added:
[Kachi will be] the first lithium brine project in South America to produce lithium at commercial scale without the use of evaporation ponds for lithium concentration.
Lake Resources share price snapshot
It's been a dismal 12 months for the ASX lithium share.
The Lake Resources share price is down 78% over the past 12 months and down 43% in 2023 to-date.
