Lake Resources cost reduction and strategic partner update

Lake Resources N.L. (ASX: $LKE) has announced a significant reduction in expenditures and a rationalization of its employee base and general administrative expenses. The company aims to extend its financial runway and facilitate a robust strategic partner selection process following the completion of the Kachi Phase One Definitive Feasibility Study ('DFS'). The cost-saving measures are expected to result in a further approximate 30% reduction in expenditures for the quarter ending 30 June 2024 compared to the quarter ending 31 March 2024. These actions will not impact the planned timing of the Environmental Impact Assessment submission or the strategic partner selection process.

Executive commentary on cost reduction and strategic partner selection

Chief Executive Officer David Dickson expressed the company's commitment to preserving financial flexibility while executing a thorough and prudent strategic partner selection process. Despite the current backdrop of depressed short-term lithium pricing, Dickson remains enthusiastic about the Kachi Project's potential to deliver long-term value. The company is focused on delivering the Kachi Project in 2028, aligning with the start of a prolonged period of structural deficit for battery-grade lithium chemicals.

Summary of cost reduction measures and strategic partner selection process

Lake Resources N.L. (ASX: $LKE) has implemented significant cost reduction measures to extend its financial runway and facilitate a robust strategic partner selection process following the completion of the Kachi Phase One Definitive Feasibility Study. The company remains committed to delivering the Kachi Project in 2028, aligning with the anticipated structural deficit for battery-grade lithium chemicals. The strategic partner selection process is expected to conclude in the second half of the year (2H CY24), with the final investment decision (FID) to follow approximately nine to twelve months thereafter (CY25). The company continues to explore further ways to reduce expenses and evaluate the monetization of non-core assets and lithium tenements unrelated to the Kachi Project.