Lake Resources Boosts Liquidity to $18M, Cuts Kachi Costs Sharply
Lake Resources has strengthened its financial position with a $12 million capital raise and delivered a 16% cut in capital expenditure for its flagship Kachi Lithium Brine Project, advancing its path toward low-cost lithium production.
- Completed $12 million capital raise enhancing liquidity
- Reduced Kachi project CAPEX by 16% to US$1.157 billion
- OPEX lowered by 3% to US$5,895 per tonne LCE
- Cash on hand of AUD 18 million with no debt
- Environmental approvals and power supply planning progressing
Capital Raise Strengthens Financial Flexibility
Lake Resources NL has successfully completed a capital raise of approximately AUD 12 million, significantly boosting its liquidity to advance the development of the Kachi Lithium Brine Project in Argentina. This infusion of capital, combined with proceeds from an At-the-Market (ATM) facility, has lifted the company's cash position to AUD 18 million at the end of September 2025, with no debt on the balance sheet. The improved financial flexibility supports ongoing operational priorities and strategic initiatives.
Cost Reductions Enhance Project Economics
The company released an updated Definitive Feasibility Study (DFS Addendum) for the Kachi project, highlighting a 16% reduction in capital expenditure (CAPEX) to US$1.157 billion and a 3% decrease in operating expenditure (OPEX) to US$5,895 per tonne of lithium carbonate equivalent (LCE). These improvements position Kachi among the lowest-cost lithium producers globally, with a robust pre-tax net present value (NPV) of US$1.47 billion and an internal rate of return (IRR) of 22.5% based on a long-term lithium price of US$20,500 per tonne.
Advancing Environmental and Infrastructure Approvals
Lake Resources continues to engage closely with the Catamarca Environmental and Mining Ministries to secure final approval of the Exploitation Environmental Impact Assessment (EIA). While the government has committed to completing approvals by the end of 2025, the company anticipates potential delays into 2026. Concurrently, power supply planning is progressing with YPF Luz, exploring grid and alternative energy solutions to ensure reliable, cost-effective, and sustainable power for the project.
Operational Efficiency and Cost Controls
In addition to capital improvements, Lake Resources is implementing organizational right-sizing and cost reduction measures, which have already resulted in approximately 40% lower cash outgoings in 2025 compared to the previous year. These initiatives are expected to further reduce expenditures in 2026, extending the company’s funding runway beyond three quarters when combined with available financing facilities and placement capacity.
Outlook and Strategic Positioning
With a strengthened balance sheet, improved project economics, and ongoing regulatory progress, Lake Resources is well-positioned to advance Kachi toward production. The company retains significant placement capacity, potentially enabling additional capital raises to support development milestones. However, timing of environmental approvals and final power supply decisions remain key variables to watch as the project moves forward.
Bottom Line?
Lake Resources’ enhanced liquidity and cost efficiencies set the stage for critical next steps in advancing Kachi, though regulatory timing remains a watchpoint.
Questions in the middle?
- When will the Exploitation Environmental Impact Assessment receive final approval?
- What power supply solution will Lake Resources ultimately select for Kachi?
- How will market conditions affect the company’s ability to utilize its full placement capacity?
