The Lake Resources share price has had a stellar month. The company’s share price has surged nearly 56% from $1.25 at close on 14 March to today’s price of $2.00.
At the time of writing, shares in the lithium explorer are up 8.7%, trading at $2.00 despite no news from the company.
So what has been impacting this share in the last month?
Why has the Lake Resources share price soared?
The Lake Resources share price reached a high of $2.45 on 4 April before retreating. This was more than double the company’s share price a month ago.
Company news and market sentiment towards electric vehicles (EV) have likely impacted the Lake share price. Lake explores lithium, a critical component of EV batteries.
On 29 March, the Lake share price surged nearly 15% amid an agreement with Japan company Janwa Co.
Lake signed a non-binding memorandum of understanding for offtake of up to 25,000 tonnes per annum (tpa) of lithium carbonate from the Kachi project in Argentina.
Company management hopes to produce 100,000 tonnes of lithium by 2030.
Meanwhile, on 11 April, the company’s share price leapt nearly 7% higher amid an agreement with Ford Motor Company. Under the deal, Lake will provide Ford with 25,000 tpa of lithium from the Argentina project. Shares charged up 16% in early trade on this day before pulling back.
On 12 April, Bell Potter lifted its price target on the Lake Resources share price by 55% to $2.83. Bell Potter said:
LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direction lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods
Lithium explorers could see the entrance of a new high profile entrepreneur into the market in the future. On Saturday, Elon Musk tweeted Tesla may take up lithium mining.
Lake Resources share price snapshot
The Lake Resources share price has exploded 533% in the past 12 months and is up 97% this year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.
Lake Resources has a market capitalisation of about $2.5 billion.
The post The Lake Resources share price has surged 56% in a month. What’s happening? appeared first on The Motley Fool Australia.
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More reading
- Why is the Lake Resources share price powering down by 8% today?
- Lithium watch: Broker tips Lake Resources share price to rocket 42% higher
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- Why IGO, Lake Resources, Regis Resources, and ResApp shares are charging higher
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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