Lake Resources (LKE) H2 2024 earnings summary

Executive summary

• Achieved major milestones at the Kachi lithium brine project, including a maiden Ore Reserve and a Phase One Definitive Feasibility Study (DFS) showing a post-tax NPV of US$2.3B and IRR of 21%.

• Kachi resource estimate increased to over 10.6 Mt LCE, with Measured and Indicated Resources rising from 2.9 to 7.3 Mt year-over-year.

• Implemented significant cost reductions, including a 70% global headcount reduction and sale of non-core assets to preserve capital.

• Engaged in a strategic partnering process for Kachi, with Goldman Sachs as advisor; process ongoing due to challenging lithium market conditions.

Financial highlights

• Net loss after tax of $54.0M for FY2024, compared to $47.3M loss in FY2023.

• Revenue primarily from gains on Electronic Payment Market (MEP Dollar) transactions: $21.7M in FY2024, down from $43.7M in FY2023.

• Cash and cash equivalents at 30 June 2024: $22.9M, down from $89.2M at prior year-end.

• No debt outstanding as of 30 June 2024.

• Exploration and evaluation assets increased to $145.6M from $98.2M year-over-year.

Outlook and guidance

• Focus remains on advancing Kachi to final investment decision (FID), with strategic partner selection expected to take longer due to market conditions.

• Ongoing cost control and potential non-core asset sales to extend financial runway.

• Anticipates approval of Kachi Phase One Environmental Impact Assessment in first half of 2025.