Lake Resources slashes global workforce

Photo: Lake Resources

In an attempt to further reduce costs, Australian lithium developer Lake Resources said it will cut its global headcount by 50% across its non-core operational and administrative workforce.

Furthermore, Lake said it will continue to evaluate the monetization of non-core assets and lithium tenements unrelated to its flagship Kachi project in Argentina.

Lake estimates a further 30% reduction in expenditures in the quarter ending 30 June 2024, compared to the previous quarter, in which it saw expenditures reduced by 40%.

“Despite the current backdrop of depressed short-term lithium pricing, we remain very enthusiastic about the Kachi project, and its potential to deliver long-term value. We are committed to taking all necessary actions to preserve our financial flexibility while we execute a thorough and prudent strategic partner selection process that results in the best outcome for Lake and its shareholders,” said CEO David Dickson.

“We are focused on delivering the Kachi project in 2028, which is forecast to align with the start of a prolonged period of structural deficit for battery-grade lithium chemicals.”

Kachi is located in Argentina’s Catamarca Province at the southern end of the Lithium Triangle, a world-renowned province responsible for 40% of global lithium production. Lake also has three additional early-stage projects in this region.

Source: Lake Resources