Australia's Lake Resources announces job cuts to further reduce costs (updated)

Lake Resources NL

03/03/2024 22:16

(Updates throughout with details and background)
       March 4 (Reuters) - Australia's lithium developer Lake
Resources  LKE.AX  on Monday said it would reduce global
headcount by nearly 50% across its non-core operational and
administrative workforce as it implements further cost-saving
measures.
    Furthermore, Lake will continue to evaluate the monetization
of non-core assets and lithium tenements unrelated to its
lithium developer's flagship Kachi project in Argentina, in a
bid to further reduce expenses.
        This comes at a time when signs have shown that the
lithium market has been 
    stabilising
     after falling around 70% over the past year as EV sales
growth slowed.
  
        The company estimates further 30% reduction in
expenditures in the quarter ending June 2024, compared to the
previous quarter, in which it saw expenditures reduced by 40%.
  
        The lithium developer is also in middle of selecting a
strategic partner for its operating entity of the Kachi project.
  
        "Company is now actively conducting outreach to a wide
array of potential strategic partners as it progresses the
initial phase of the strategic partner selection process," Lake
Resources said in a statement.
  
        Lake Resources expects the partner selection process to
conclude in the second half of 2024, it added.
  
        
  
        
  
        
  

 (Reporting by Ayushman Ojha; Editing by Mark Porter and Diane
Craft)
 ((Ayushman.Ojha@thomsonreuters.com;))