Lake Resources (OTCPK:LLKK.F) Conference Transcript

Summary of Lake Resources Conference Call Company Overview - Company: Lake Resources (OTCPK: LLKK.F, ASX: LKE) - Focus: Development of lithium assets in Argentina, specifically the Kachi project located in Catamarca province - Background: Established in 2016-2017, with David Dickson as CEO since 2022, bringing experience from oil and gas sectors [2][3] Key Points on Kachi Project - Resource Size: Kachi has 11.1 million tons of lithium carbonate equivalent (LCE), with 8.2 million tons measured and indicated [4] - Production Plans: Phase one aims for 25,000 tons per annum of battery-grade lithium carbonate at over 99.5% purity [4] - Brine Quality: Average lithium content improved from 249 mg/L to 268 mg/L, enhancing project economics [5][11] - Mine Life: Project expected to have a lifespan of 25 years [5] Financial Metrics - Capital Expenditure (CapEx): Estimated at $1.16 billion for the initial phase [10] - Operating Expenditure (OpEx): Projected at just under $5,900 per ton, with power costs constituting over 55% of OpEx [10][11] - Net Present Value (NPV): Estimated at $1.5 billion with a return rate of 22.5% [11] Technological Developments - Direct Lithium Extraction (DLE): Collaboration with Lilac Solutions, focusing on Ion Exchange technology for lithium extraction [12][13] - Demonstration Plant: Successfully operated a demonstration plant using Kachi brines, with ongoing improvements in technology [13][14] - Commercial Scale Production: Lilac has established a facility in Nevada capable of supplying beads for production of up to 100,000 tons of lithium carbonate per year [14][15] Environmental and Regulatory Milestones - Environmental Impact Assessment (EIA): Application submitted in March 2024, with expected approval in the first half of 2026 [18][19] - Ramsar Site Zonification: Received approval to protect surrounding wetlands, a significant regulatory milestone [8][19] Market and Economic Context - Lithium Price Volatility: Prices fluctuated from $82,000 per ton in December 2023 to $8,000 in 2025, currently stabilizing around $20,000-$21,000 [27][28] - Supply-Demand Dynamics: Shift in forecasts indicating a supply deficit may occur as early as 2025, driven by increased demand from battery energy storage systems [29][30] - International Relations: Strengthening ties between Argentina and the U.S. under the Critical Minerals Framework, enhancing investment attractiveness [22][24] Future Outlook - Operational Focus: Continued emphasis on securing final permits, optimizing power supply solutions, and advancing discussions with potential offtake partners [20][21][32] - Investor Engagement: Plans for increased market communication and updates on project developments as lithium prices stabilize [37] Community Engagement - Local Involvement: Active communication and collaboration with the local community near Kachi, ensuring transparency and involvement in project developments [36]