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Lake Resources NL (LKE AX)
J Capital Research ("J Cap") is a stock-research company. J Cap has analyzed the Australia-listed company Lake Resources (“LKE”) and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. We may be short shares of LKE ASX and, for this reason, there might be a conflict of interest.
Update November 7, 2022
We made a Freedom of Information Act (FOIA) application to the UK government to verify Lake Resources' (Lake) claim that it has “confirmed” funding from UK Export Finance (UKEF). These documents seem to reveal that Lake has made statements about the expression of interest (EOI) from UKEF that are incorrect. UKEF says that Lake is just at the start of the application process. Despite Lake's spin to promote the stock, the facts are the project has:
• no export financing in place
• no binding offtake agreements
• no definitive feasibility study
• no export financing in place
• no binding offtake agreements
• no definitive feasibility study
Initiation Report: July 11, 2022
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Lake Resources (LKE ASX) “Lake” is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine. If Lake can get the DLE technology to work then it plans to build a $1 bln processing facility in a remote location in the
Andes. Lake is claiming to produce “cleaner lithium.” We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would. Lake insiders have successfully sold $8.1 mln in stock in the last year. Lake granted 41.5 mln options to financial institutions that published favorable research on the company. Insider share sales have followed a pattern of Lake announcement, followed by favorable research, stock price rise and then insider sales. Investors had been expecting the delivery of the pilot plant to site and a definitive feasibility study (DFS) by the end of June. Instead, they got the resignation of the CEO and Managing Director Steven Promnitz without a replacement. |
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Resources: Lake Resources documents released by UK Export Finance
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