The Lake Resources NL (ASX: LKE) share price is in the red on Wednesday after the miner posted its Q3 2024 cash flow update.
Shares of Lake Resources are currently swapping hands at 6.5 cents, about 3% lower as the market digests the company's figures.
Zooming out, the stock is up more than 62% in the past month. Here's what it posted.
Lake Resources share price slips on Q3 update
Lake Resources' quarterly report highlighted several key metrics, including the following:
- The company reported $5.9 million in net cash used in operating activities for the quarter
- Lake raised an additional $2.5 million through its At-the-Market (ATM) facility
- Cash and cash equivalents ended the quarter at $17.5 million, providing a buffer for upcoming activities
- The company continued efforts to streamline costs, resulting in a new multi-year low for quarterly outgoings
- Lake secured approximately $1.1 million from the sale of non-core equipment at the Kachi Project
What else happened in Q3?
The Lake Resources share price exploded at the end of the quarter, rallying from 4 cents to 7.8 cents apiece from October 1 through 18.
Such was the extent of the move that the ASX contacted Lake, seeking clarifications. Nothing company-specific was announced, but lithium stocks did catch a bid during the period.
Aside from this, Lake continued developing its flagship Kachi Project.
This included work on the Exploitation Environmental Impact Assessment (EIA) and progress on Front-End Engineering Design (FEED) needed to deliver power to the site. The FEED is part of its partnership with YPF Luz, relating to the construction of a high voltage power line to power Kachi.
Lake left the quarter with no debt on its balance sheet but held $17.5 million of cash and equivalents across various currencies.
It also raised $2.5 million via an ATM facility with Acuity Capital, issuing 65 million new shares to facilitate the subscription.
What's next?
Looking ahead, Lake Resources plans to continue reducing cash outflows and maximising the efficiency of its capital.
The company is in ongoing discussions with potential strategic partners for Kachi and has hinted at further non-core asset sales. According to the release:
Calendar year 2025 outgoings are expected to be materially lower than calendar year 2024, primarily benefiting from the organizational right-sizing achieved in 2024 and the financial benefit of the Company's active working capital management.
Lake's recent replenishment of annual placement capacity under Listing Rule 7.1 and the Company's ongoing self-advised process for the potential sale of non-core assets and lithium tenements located in Jujuy and Catamarca Provinces are both important potential sources of capital to improve our liquidity runway.
Lake Resources share price snapshot
The Lake Resources share price is in the red today as investors digest its Q3 update. While there are plenty of takeouts, the market's reaction suggests that there may have been value left on the table.
In the last 12 months, the stock is down more than 59%.
