Australian company Lake Resources announced that, following the completion of the Definitive Feasibility Study for the first phase of the Kachi lithium project (DFS), they are rationalizing the size of their employee base and general administrative expenses to extend their financial horizon and better position the company, amid the search for a new strategic partner to assist in financing subsequent stages.
By Panorama Minero
The company had previously announced an approximate 40% reduction in expenses for the quarter ending March 31 compared to the quarter ending December 2023. Now, Lake is implementing additional cost-saving measures by reducing the global workforce by approximately 50% of its operational and administrative staff, as well as further optimizing other general expenses. As a result of these actions, the company anticipates an additional approximate 30% reduction in expenses for the quarter ending June 30, 2024, compared to the quarter ending in late March.
Additionally, they indicated that these actions will not affect the planned schedule or the submission of the Environmental Impact Assessment, scheduled for March 31, 2024. "In line with this, Lake will continue its rigorous focus on optimizing the cost structure and will explore new ways to reduce expenses while continuing to evaluate the monetization of non-essential assets and lithium concessions unrelated to the Kachi Project," they added.
Commenting on the outlook for Kachi, the company's CEO, David Dickson, stated: "Despite the current context of depressed short-term lithium prices, we remain very excited about the Kachi Project and its potential to deliver long-term value. We are committed to taking all necessary measures to preserve our financial flexibility as we execute a comprehensive and prudent strategic partner selection process that results in the best outcome for Lake and its shareholders. We are focused on delivering the Kachi Project by 2028, which is expected to align with the beginning of an extended period of structural deficit for battery-grade lithium chemicals."
Lake Resources seeks to reduce costs to streamline Kachi's progress while seeking a new partner
