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Lake Resources Cuts Over 50% Headcounts and Sells Non-Core Assets

iconJul 8, 2024 12:24
Source:SMM
On 30 June, Lake Resources announced plans to cut headcounts and sell non-core assets to optimize its financial stability.

On 30 June, Lake Resources announced plans to cut headcounts and sell non-core assets to optimize its financial stability. The company says it is actively seeking strategic partners despite a challenging market environment with lithium prices performing unfavorably in recent past years.

The CEO David Dickson highlights ongoing discussions with potential partners, aiming to secure equity investment and offtake agreements. Lake Resources is also eyeing the sale of its non-core assets, including lithium tenements in Argentina's Jujuy and Catamarca provinces, namely Paso de Jama, Olaroz, Cauchari and Ancasti, to streamline operations and focus on its flagship project Kachi's development.

To mitigate financial strain, Lake Resources is implementing significant cost-cutting measures, reducing its global headcount by over 50%, including six executive team members, and deferring a portion of the CEO's salary.

According to the disclosure, Lake Resources' cash reserves stood at A$30.8 million as of March 31, 2024, with additional reductions in expenditure expected to preserve capital. The company aims to bolster its financial position as it navigates the current market downturn, while still targeting 2027 for Kachi's production start, contingent on a recovery in lithium prices.

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