Impact: Very Positive
Lake Resources has increased the planned production at its flagship Kachi project in Argentina from 25.5ktpa to 50ktpa lithium carbonate equivalent (LCE). The upcoming Definitive Feasibility Study (DFS) will use 50ktpa as its base case, and the increased production is expected to be supported by an updated resource estimate. We view this production increase very positively, as the PFS which utilized a 25.5ktpa scenario had already shown robust economics. We anticipate the DFS to demonstrate even stronger economics and are therefore increasing our target price for Lake to A$2.20/sh (was A$1.25/sh).