Ham Child, for what it's worth, I've bought lots of Lake because I think it will be a life-changing investment. I took these sorts of things into account:
Great sector – the energy storage phenomenon has barely started, and will last for years. That somewhat de-risks battery metals stocks like Lake.
Ideal location … - Lake's projects are in Argentina – perhaps the best place in the world for lithium development, having regard to the superb brine acreage (c.f. Australia – more hard rock) and politics (c.f. Chile and Bolivia politically too left-wing)
Vast, high quality acreage – Lake has 4 prime project areas (3 brine and I hard rock), totalling over 170,000 Ha – a huge and valuable footprint. It also gives us development flexibility. With world class lithium producers right near us, we're in the right spot.
Great management – the Board has shown great vision in getting in early and securing such great acreage, and in how they've handled the share capital. The directors' individual skill sets are just right for what Lake needs now.
Excellent capital structure – with only 227m shares currently on issue (and just under 300m fully diluted) – this is tight, giving flexibility for clever corporate deals without undue dilution. The directors have shown they will manage this well.
Drilling underway – with Kachi drilling now underway and expected good results - we are drilling in a salt lake (which gives some degree of predictability), and with an LOI from the Catarmaca State mining and energy entity to advance the project, Lake's value could multiply soon, just from Kachi. And Kachi is perhaps not even be our best project area.
Undervalued (comparatively and in absolute terms) – with a current market cap. of ~$45M, Lake is a bargain – IMO it's the buy of the lithium explorers I've reviewed.
Right time (big upside) – it's good to buy early in the story, before the upside has been realised with drilling results, further lease approvals, corporate deals etc.
Big lithium users (particularly from China) are starting to flop out cheque books to secure supplies. Multi-hundred million $ deals are the norm, for slices of equity only – not even full ownership. Other than Great Wall, with their recent deal with PLS, the car companies haven't got started yet. If a scramble develops, we'll be right in the frame. I like that.
I understand the dilemma you're facing. You can buy a few now – you don't have to fill your boots on the first order, and can buy more later (or sell, if you like) as the story unfolds.
The energy storage phenomenon will affect us all for the better – but you can also enjoy it as an investor. If you buy a few Lake I'll be stunned if you don't have a chance to make a few bucks.
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