Ann: Important Progress Towards DFS Completion, page-37

Never forget that you don't own 100% of the project. 25% belongs to Lilac. Also, keep in mind that Lilac and Lake had their strategic differences in the past, and a new fight is never far off. Lilac has its own agenda and is not here to protect the interests of Lake's shareholders.

Lake still needs to undergo a lengthy process of environmental licensing; they are significantly behind on various aspects. Additionally, it is evident that the electricity supply will be a major concern, considering their requirement of 60 MW.

The current market cap seems a bit high for this stage of the project. It is still in an experimental phase, and the current political conditions in Argentina are highly uncertain when it comes to obtaining the required permits to become a producer.

David Dickson is doing his best to explain to the shareholders that the project is complex. Investors need to understand that progress will take time, and the financial costs will be substantial. The attractiveness of the project will be highly dependent on the capex and the long-term price of lithium, which means there are no guarantees in that regard.

As always, David hides behind the upcoming DFS, for now, the financial aspect and the timeline for entering production are not major concerns for him. However, he does drop hints to investors that establishing a robust 30,000-ton-per-year lithium plant could cost between $1.2 billion and $1.5 billion USD.

Regarding Lake's current treasury, David indicates that they are spending an average of $5 million per month and currently have $60 million USD on hand. It is clear that Lake is placing all its resources and focus on the Kachi project. For shareholders, this is concerning as the company is not exploring other avenues. One could even infer that shareholders might have been misled into believing that the other projects were core assets as well.

David continues to discuss Lake's monthly expenditure of $5 million USD, and it's worth noting that a significant portion of this spending is occurring outside of Argentina. A crucial question for Lake is where the money is being allocated; are they paying Lilac for tests and technology while also giving them a 25% share of the project? Lake should prioritize transparency in this matter.

Folks this is very alarming from my point of view.

Not financial advice
Dyor
Cheers Michel