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Lake Resources N.L. (AU:LKE)
ASX:LKE

Lake Resources N.L. (LKE) AI Stock Analysis

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AU

Lake Resources N.L.

(Sydney:LKE)

Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Lake Resources N.L. faces significant financial and technical challenges, marked by declining revenues, negative cash flow, and a bearish technical outlook. The company's strong equity position and low leverage offer some stability, but the lack of profitability and poor valuation metrics are critical concerns. The stock is under pressure with limited near-term catalysts for improvement.

Lake Resources N.L. (LKE) vs. iShares MSCI Australia ETF (EWA)

Lake Resources N.L. Business Overview & Revenue Model

Company DescriptionLake Resources NL explores for and develops lithium brine projects in Argentina. Its flagship project is its 100% owned the Kachi lithium brine project that consists of 39 mining leases covering an area of approximately 74,000 hectares located in Catamarca province, Argentina. Lake Resources NL was incorporated in 1997 and is based in Sydney, Australia.
How the Company Makes MoneyLake Resources N.L. generates revenue primarily through the exploration, development, and commercialization of its lithium-brine projects. The company's key revenue streams include the sale of high-purity lithium products to battery manufacturers and technology companies. Additionally, Lake Resources may engage in strategic partnerships or joint ventures with other mining and technology firms to enhance its production capabilities and market reach. Factors contributing to its earnings include the global demand for lithium, driven by the increasing adoption of electric vehicles and renewable energy solutions, as well as the company's ability to efficiently extract and supply high-quality lithium products.

Lake Resources N.L. Financial Statement Overview

Summary
Lake Resources N.L. is navigating a complex financial situation characterized by decreasing revenue, negative profitability, and cash flow challenges. Despite a strong equity position and low leverage, the company is under pressure due to operational inefficiencies and declining asset values.
Income Statement
45
Neutral
Lake Resources N.L. has experienced a significant decline in total revenue, decreasing from $43.7 million in 2023 to $21.8 million in 2024, representing a revenue decline rate of approximately 50%. The company has consistently reported negative net income, with the net loss widening from $45.8 million in 2023 to $52.5 million in 2024. The negative EBIT and EBITDA margins indicate ongoing operational challenges and cost inefficiencies. The gross profit margin remains positive, but overall profitability is compromised by high operational losses.
Balance Sheet
60
Neutral
The company's balance sheet shows a strong equity position with stockholders' equity of $153.1 million against total assets of $177.6 million, resulting in an equity ratio of 86.2%. The debt-to-equity ratio is low at 0.02, indicating minimal leverage. However, Lake Resources has seen a decrease in total assets and equity from the previous year, which could impact future financial stability. The low level of debt reduces financial risk, but the decline in equity and assets may warrant caution.
Cash Flow
50
Neutral
Lake Resources N.L. is facing cash flow challenges, with negative operating and free cash flows. The free cash flow has shown a slight improvement, decreasing from -$95.5 million in 2023 to -$79.7 million in 2024, yet remains negative. The operating cash flow to net income ratio is concerning as it reflects ongoing cash deficits. The company has been relying on financing cash flow to sustain operations, indicating potential liquidity risks.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue5.57M21.84M43.70M9.36M0.000.00
Gross Profit5.57M21.84M43.49M9.31M-337.00-881.00
EBITDA-35.62M-29.72M-45.25M-4.94M-2.89M-4.45M
Net Income-28.49M-52.46M-45.75M-5.68M-2.89M-4.90M
Balance Sheet
Total Assets183.12M177.63M193.42M223.89M47.92M17.71M
Cash, Cash Equivalents and Short-Term Investments22.56M22.90M89.22M175.44M25.66M55.51K
Total Debt2.01M2.38M1.67M277.86K0.000.00
Total Liabilities20.91M23.06M17.09M5.05M1.05M664.13K
Stockholders Equity160.40M153.15M171.25M218.83M46.87M17.05M
Cash Flow
Free Cash Flow-34.74M-79.72M-95.49M-32.89M-7.23M-7.17M
Operating Cash Flow-24.83M-39.80M-27.73M-8.68M-2.43M-2.95M
Investing Cash Flow7.95M-18.00M-24.06M-25.37M-4.80M-4.22M
Financing Cash Flow16.51M14.03M1.77M183.83M32.83M5.50M

Lake Resources N.L. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
30.72
Neutral
STOCH
20.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LKE, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LKE.

Lake Resources N.L. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AULKE
45
Neutral
$45.84M-19.25%65.04%
44
Neutral
C$958.62M-6.68-13.31%2.80%17.55%-32.28%
AUBSX
40
Underperform
AU$61.71M-51.66%59.92%
AUCOD
39
Underperform
AU$18.97M-18.44%45.75%
AULEL
39
Underperform
AU$41.44M-16.58%-131.72%
AUMEU
35
Underperform
AU$44.78M-2.31%-33.33%
AUPHO
28
Underperform
AU$28.05M
-126.25%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LKE
Lake Resources N.L.
0.03
-0.02
-37.21%
AU:BSX
Blackstone Minerals Ltd
0.09
0.04
80.00%
AU:MEU
Marmota Limited
0.04
-0.01
-20.00%
AU:COD
Coda Minerals Ltd
0.08
-0.02
-20.00%
AU:PHO
PhosCo Ltd
0.06
0.04
200.00%
AU:LEL
Lithium Energy Ltd.
0.37
-0.01
-2.63%

Lake Resources N.L. Corporate Events

Lake Resources N.L. Announces Cessation of Securities
Jun 24, 2025

Lake Resources N.L. announced the cessation of 5,550,000 securities due to the expiry of options or other convertible securities without exercise or conversion as of June 15, 2025. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth potential.

The most recent analyst rating on (AU:LKE) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Lake Resources N.L. stock, see the AU:LKE Stock Forecast page.

Lake Resources N.L. Updates Resource Report to Enhance Clarity and Accuracy
Jun 3, 2025

Lake Resources N.L. has announced amendments to its Resource Update initially released on 14 May 2025, following a request from the ASX. These amendments include clarifications on future drilling activities, additional details on cut-off grades, and further information on the Competent Person Statement, among others. These changes are expected to enhance the transparency and accuracy of the company’s reporting, potentially impacting stakeholder confidence and the company’s positioning within the lithium industry.

The most recent analyst rating on (AU:LKE) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Lake Resources N.L. stock, see the AU:LKE Stock Forecast page.

Lake Resources Boosts Lithium Resource Estimate at Kachi Project
May 14, 2025

Lake Resources N.L. has announced an update to its Mineral Resource Estimate for the Kachi lithium brine project, increasing the Measured and Indicated Resource to 8.2 million tonnes of lithium carbonate equivalent (LCE), up from 7.3 million tonnes. This update, which includes results from recent drilling and testing, highlights a higher-grade lithium zone in the southern sector of the salar and incorporates advancements in lithium recovery technology. The increase in resources is expected to enhance the project’s feasibility and operational efficiency, potentially benefiting stakeholders by positioning Lake Resources as a more competitive player in the lithium market.

The most recent analyst rating on (AU:LKE) stock is a Buy with a A$0.14 price target. To see the full list of analyst forecasts on Lake Resources N.L. stock, see the AU:LKE Stock Forecast page.

Lake Resources Explores Strategic Alternatives for Kachi Project
May 6, 2025

Lake Resources N.L. has announced the formation of a Special Committee to explore strategic alternatives for maximizing stakeholder value, driven by the belief that the Kachi project’s market value is undervalued. Despite current low lithium prices, the company remains optimistic about long-term demand growth and aims to address valuation discrepancies through potential sales, mergers, or partnerships.

Lake Resources Issues New Performance Stock Units
May 6, 2025

Lake Resources N.L. announced the issuance of 22,084,586 performance stock units as part of an employee incentive scheme. This move reflects the company’s strategy to incentivize its workforce, potentially enhancing productivity and aligning employee interests with company growth, which could strengthen its position in the competitive lithium market.

Lake Resources Issues Restricted Stock Units to Bolster Talent Retention
May 6, 2025

Lake Resources N.L. announced the issuance of 22,084,586 restricted stock units as part of an employee incentive scheme. This move is part of the company’s strategy to incentivize and retain talent, which is crucial for advancing its lithium projects and maintaining its competitive position in the rapidly growing lithium market.

Lake Resources N.L. Announces Cessation of Securities
Apr 29, 2025

Lake Resources N.L. announced the cessation of 2,256,293 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth potential.

Lake Resources N.L. Reports Cash Flow Decline Amid Exploration Investments
Apr 28, 2025

Lake Resources N.L. reported a decrease in cash and cash equivalents by $7.558 million for the quarter ending March 31, 2025. The company’s cash flow was negatively impacted by operating activities, which saw significant outflows due to administration and corporate costs, and investing activities, which included payments for exploration and evaluation. Despite these challenges, the company managed to generate some cash from financing activities and investments, indicating ongoing efforts to manage its financial position amid industry demands.

Lake Resources N.L. Announces Quotation of New Securities
Apr 14, 2025

Lake Resources N.L. has announced the application for quotation of 56,000,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as part of previously announced transactions. This move is likely to enhance the company’s capital base, potentially strengthening its position in the lithium market and offering new opportunities for stakeholders.

Lake Resources N.L. Issues New Shares to Acuity Capital
Apr 14, 2025

Lake Resources N.L. has issued 56,000,000 fully paid ordinary shares to Acuity Capital Investment Management Pty Ltd at a price of 4.00 cents per share under its At-the-Market Subscription Agreement. This move is part of the company’s strategy to raise capital without disclosure to investors, ensuring compliance with relevant sections of the Corporations Act 2001. The issuance of new shares is expected to support the company’s financial position and operational capabilities, potentially impacting its market presence and stakeholder interests.

Lake Resources N.L. Announces Proposed Securities Issue
Apr 11, 2025

Lake Resources N.L. announced a proposed issue of 56,000,000 ordinary fully paid securities, scheduled for April 14, 2025. This strategic move is expected to enhance the company’s capital structure, potentially strengthening its market position and providing additional resources to advance its lithium projects, which are vital for the growing demand in the electric vehicle and renewable energy sectors.

$2.25 Million Raised by Lake Resources to Boost Kachi Project
Apr 11, 2025

Lake Resources N.L. has successfully raised $2.25 million through its At-the-Market Subscription Agreement with Acuity Capital by issuing 56 million fully paid ordinary shares at a premium price of 4.0 cents per share. The funds will be used to strengthen the company’s balance sheet, support its strategic priorities for the Kachi project, and provide working capital, highlighting the company’s ongoing commitment to advancing its operations and maintaining a strong market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025