Excerpt from Petra Capital report.
Report Summary – Lake Resources N.L. (ASX: LKE)
- Action: BUY
- Target Price: A\$0.25 per share (fully diluted)
- Current Price: A\$0.082 per share
- Key Idea: Lake Resources (LKE) is advancing the Kachi lithium brine project in Argentina, targeting a 25ktpa lithium carbonate operation using Direct Lithium Extraction (DLE) technology, in partnership with Lilac Solutions. The project has an NPV12 of A\$2,121m, with strong economics and a low-cost profile (cash costs: US\$6,400/t; AISC: US\$8,400/t).
- Highlights:
- Large 11Mt LCE resource in the Lithium Triangle, Argentina.
- Clear de-risking milestones ahead: EIA approval mid-2026, offtake and funding late-2026, FID early-2027, and first production by FY30.
- Lilac Solutions, holding up to 25% of Kachi, brings proven DLE technology and funding support.
- Strong forecast returns: A\$560m EBITDA/yr at full production; IRR of 19% (base case), with post-tax IRR of 21%.
- Valuation assumes conservative operating parameters; upside from higher recoveries, expansion, or lower tax via Argentina’s RIGI regime.
- Key Risks: DLE technology performance, lithium price volatility, cost overruns.
ASX Ticker: LKE
Above is an excerpt from a report by Petra Capital. Clients of Petra Capital can be the first to access the full report from the Petra Capital website: http://www.petracapital.com.au/research-disclosures
