• We are resuming coverage on Lake Resources. The company’s flagship Kachi lithium brine project is located in Catamarca province in northwestern Argentina, near several advanced-stage projects owned by majors. 
  • Kachi hosts a large-tonnage/low-grade lithium brine resource totaling 10.6 Mt LCE (lithium carbonate equivalent) at 218 mg/L. A 2023 Definitive Feasibility Study (DFS) returned an After Tax-NPV8% of US$1.7B, using US$28k/t LCE vs the current spot price of US$10k/t. Although the DFS lacked NPV/IRR estimates for LCE prices <US$28k/t, we speculate it would have returned an AT-NPV8% of US$0.8-US$1.0B at a five-year average LCE price of US$21k/t.