Why has the Lake Resources share price rocketed 16% today?

Woman jumping for joy at great news with wide open country around her.

Woman jumping for joy at great news with wide open country around her.

It’s been a great start to the trading week for ASX shares this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has gained a healthy 0.34% and is now closing back in on 7,000 points. But it’s been even better for the Lake Resources N.L. (ASX: LKE) share price.

Lake Resources shares closed at 81 cents each last week. But the ASX 200 lithium stock opened at 84 cents this morning and is now up to 88 cents a share, a gain worth a pleasing 8.64%. Earlier today, the company rose as high as 94 cents, a whopping 16% gain at the time.

So what’s going on here to elicit such a decisive share price gain for Lake Resources?

Well, it’s not clear. Lake Resources has not come out with any fresh news or announcements today. So perhaps this move is just a continuation of the trend we have seen emerge with Lake shares in recent weeks.

Why are Lake Resources shares shooting the moon on Monday?

After a rough couple of months, the past fortnight has been incredibly kind to the Lake Resources share price. It was only as recently as 15 July that this company traded at 61 cents per share. That means that Lake shares have risen an incredible 45% or so over the past two weeks. That includes a gain worth around 30% over the past five trading days alone.

Many other ASX lithium shares have been experiencing similar moves. The Pilbara Minerals Ltd (ASX: PLS) share price is up almost 18% since 15 July. The Liontown Resources Limited (ASX: LTR) has also put on around 40% over the same period, while Core Lithium Ltd (ASX: CXO) shares have gained more than 31%.

But we also had an update from Lake shares last week that could boost sentiment. Last Friday, Lake released its quarterly results covering the three months to 30 June 2022.

As we covered then, this report contained several updates for Lake investors. These included details about the company’s discussions with Ford Motor Company, a second drilling rig at Lake’s lithium brine projects, and a declaration that production at Lake’s Kachi Project aims to commence in 2024.

Upon the release of this report, investors reacted positively, sending Lake shares up almost 4% last Friday.

So the stellar performance of the Lake share price today is likely a continuation of the trend we have seen recently, perhaps helped by the quarterly update last week.

No doubt investors will be pleased with what they are seeing today.

At the current Lake Resources share price, this ASX 200 lithium stock has a market capitalisation of $1.23 billion.

The post Why has the Lake Resources share price rocketed 16% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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 Scott Phillips.

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