Today we’re talking about a banger of an OTC penny stock, Lake Resources, ticker symbol LLKKF.
I’m going to dive deep into Lake Resources to aid you in a decision to watch, buy or sell this stock. Yes, the LLKKF stock is up 972% year-to-date, and analysts are forecasting an exciting increase in value for this stock, that I’ll reveal later. I’ll also share details of the stock’s authorized shares, and a somewhat concerning float. Then we’ll take a look at LLKKF’s stock charts.
Lake is focused on increasing shareholder value primarily through the development of clean, high purity, responsibly sourced lithium from its flagship Kachi Project, together with its other lithium projects in the Lithium Triangle of Argentina.
Lake’s technology partner, Lilac Solutions Inc, has been backed by world-leading sustainability investors, including the Bill Gates-led Breakthrough Energy Fund and MIT’s The Engine Fund. Support from such global investors provides a high level of credibility for Lake’s key technology and its potential to deliver shareholder value.
Lake Resources is a clean lithium developer utilizing direct extraction technology for the development of from mines in Argentina. What’s exciting abut Lake Resources is that they are offering a much higher quality product at a fraction of the time: product produced in 2 weeks versus 2 years.
Before we continue, remember that OTC stocks are highly risky, so I only invest money in OTC’s that I can afford to lose. High risk versus high potential reward. And remember, this is not financial advice, and for entertainment only.
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Lake Resources projects are in a prime location within the Lithium Triangle, where 40% of the world’s lithium is produced. Lake has the largest lithium lease holding in Argentina with acreage totaling close to 2,000 sq km or 772 square miles
Lake Resources offers the world’s cleanest lithium. The company has Four lithium projects in heart of the Lithium Triangle. Here, the World’s five largest producers all have equity in operations in the Lithium Triangle
Here is a slide deck from a recent Lake Resources presentation. Lake Resources claims to offer the World’s Cleanest Lithium. Their product has a 99.97% purity – far lower impurities vs 99.5% battery grade lithium carbonate. Lake Resources claims that a higher purity equals a higher battery performance. • The company’s product utilizes a Lilac direct lithium extraction method that is superior to traditional process. And, their process is supported by the tech sector and battery/EV makers.
Lake Resource process results in a CLEANER ENVIRONMENT with low CO2, less water, and land use.
After their initial tests, Lake Resources now has a clearer path to production; They have a successful pilot plant module; a scalable project with high margins. And have located debt funding for 70% of their Kachi project. And their product has been Confirmed in batteries. + Significant ESG benefits.
Process and ESG Benefits with a Cleaner Technology. Lake Resources Process leverages Lilac’s Ion Exchange Direct Lithium Extraction ESG or Environmental, social and governance benefits through Low Carbon, Low Land & Water Use
This direct Lithium Extraction via Lilac Solutions displaces the legacy evaporation process of Brine in – Lithium chloride out. This new Lilac process offers High purity, Faster processing, High lithium recovery, while being sustainable. No brine heating with related damage and costs are included, resulting in a Cost competitive product through Durable beads. All of these claims have been substantiated in scalable, Proven in pilot plant through Extensive test work.
Bill Gates-led fund invests in making lithium mining more sustainable
Breakthrough Energy Ventures, helmed by Bill Gates, and MIT’s The Engine fund did an investment round of $20 million for Lilac Solutions, a US startup aimed at making the extraction of lithium less water-intensive and more sustainable.
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Breakthrough Energy Ventures looks to invest in startups that are each capable of cutting emissions by 500 million metric tons annually. The fund’s investors include Jeff Bezos, Jack Ma, the co-founder of Alibaba, and Mike Bloomberg. As the world looks to cut carbon emissions, people are increasingly turning to lithium-ion batteries for solutions such as powering electric vehicles or storing renewable energy. While there’s enough lithium available to meet today’s demand. BloombergNEF expects the market could see a shortfall for lithium as soon as 2023.
BNEF estimates that each ton of lithium extracted from brine requires 70,000 liters of fresh water. Evaporation pond extraction can take up to 2 years for brine to yield usable lithium. And, the process is able to recover only about 50% of the lithium. Lilac uses ion-exchange beads that are able to selectively remove lithium and leave behind unwanted minerals. What’s really great is that the time needed to extract lithium from the brine is cut down to mere hours, and approximately 90% of the lithium is removed from the brine. Lilacs process cuts energy use and related greenhouse-gas emissions.
Now you may be wondering if this technology proprietary to Lilac, and about Lilac’s relationship with Lake Resources?
Lilac deploys unique technology around ion exchange beads or resin. This is Lilac’s unique IP. Although ion exchange methods have been around for more than 50 years, they haven’t been used efficiently on lithium brines. Now, Lilac has produced a highly selective and durable ion exchange bead, and is currently in talks with a number of companies regarding using this technology. Lilac is also in a partnership with Lake Resources, hoping to transform lithium production in Argentina, Lilac has agreed to exclusivity with Lake Resources over key geographies. Lilac is also working with oil and gas producers in the U.S.
(Partnership Lilac & KCHI Slide) Lilac had also committed to contribute $50 million dollars to Lake’s Kachi Project, once earn in is complete, or the pro-rata And, Lilac completed a $150 million Series B funding round from successful tech investors and battery/EV makers
(Kach9i Project slide – proposed design) Here you can see a slide for eh Kachi Project Proposed plant design, including the one building with Ion Exchange Modules that replaces old technology’s Evaporation Ponds
(Slide 10 maket proj) Here you can see the Lithium Market projects. It is estimated that there will be a s 10x to 18x more lithium production required by 2030. This need has been an impetus to Lithium being added to critical raw materials list for the first time in 2020 Lithium-ion batteries are one of the 21st Century’s largest growth areas, and Lake’s world’s purest lithium is exactly what an electric world wants.
(Slide) Lake Resources now is pursuing a Clearer pathway, now that their high purity lithium has been tested and proven in batteries
The company’s product supports a premium battery quality, and Performs like Tier 1 products. It’s interesting to note that only 50-60% of lithium production is rated to be of battery quality.
This slide covers the current Project Production Timeline (slide 12) .Q2, 2022, includes a Definitive Feasibility and Expansion Study, including the construction of a Demonstration Plant. Lake will be offering Samples in Batteries during later 2021 and 2022 with Samples available to Off takers. In Q3 & Q4, 2022 Construction is to commence with 2024 Production.
Now, if you are invested in Lake Resources, or considering an investment you’ll want to understand how the security details can affect your investment as well as short sellers’ pressures on this stock.
This OTC short report shows that LLKKF is consistently heavily shorted, with an average of 40% shorted over the recent 5-day period.
In looking at the stock’s security details, Lake Resources has a market cap of 916 million, and right now unlimited authorized shares. So, dilution could be a concern in the future if the company dilutes with a large number of shares to raise capital. It’s interesting to note that the number of outstanding shares and the share float are the same at 1.2 billion shares.
In looking at TipRanks recent analysts price target for the stock in 12-months, Lake Resources is rated as a “moderate Buy” with a target price of 92 cents. Reg Spencer is the analyst providing the forecast and investors have received an average 9.60% return from his forecasts. This analyst also has a 100% success rate in providing profitable forecasts for LLKKF.
In looking at Lake Resources stock chart for 2020 & 2021, the stock has made a big run-up in price, beginning in late January, 2021. Then a slide back down in price stretched from March to the end of May. Since then, the stock went from a price of 17 cents to the current price.
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