Have Lake Resources shares really surged 200% since their ASX debut?

The Lake Resources N.L. (ASX: LKE) share price has had a ripper few years amid the market’s growing appetite for lithium.

The company is focused on the development of Argentina’s Kachi Lithium Brine Project.

However, things weren’t always that way. When it first listed in 2001, the company was exploring projects in Sweden, Pakistan, and India for various minerals.

As of Tuesday’s close, the Lake Resources share price trades at $1.05.

So, if an investor bought into the company at its initial public offering (IPO), how much would they have gained from the stock over its 21-year listed life? Keep reading to find out.

How much were Lake Resources shares under the company’s IPO?

An investor who snapped up a parcel of Lake Resources shares at the company’s IPO would be laughing in 2022. However, for many years prior, their investment would likely have been a disappointing one.

Lake Resources issued 4.9 million shares under its oversubscribed 2001 IPO, raising $1.716 million while doing so. That suggests an offer price of 35 cents per share.

Interestingly, BHP Group Ltd (ASX: BHP) – at that point known as BHP Billiton – snapped up US$500,000 worth of the now-lithium favourite’s stock under its IPO. The pair were working together on certain tenements at Sweden’s Norrbotten Project at the time.

Today, a $1,000 investment in Lake Resources at the time of its IPO would be worth $3,000 – marking a 200% gain. That’s a pretty decent return.

However, at its 2015 record low, the Lake Resources share price was trading at less than a single cent. No doubt, such a tumble would have been disappointing for shareholders.  

Fortunately, Lake Resources snapped up a smaller lithium company shortly after its stock hit its all-time low. That saw it taking hold of the Kachi Project, and the rest is history.

The company is now an S&P/ASX 200 Index (ASX: XJO) lithium favourite and the Kachi Project is expected to produce at least 50,000 tonnes of battery-quality lithium annually.

The post Have Lake Resources shares really surged 200% since their ASX debut? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• If I’d bought $1,000 of Lake Resources shares a year ago, I’d be one happy investor today
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is ASX 200 lithium player Lake Resources profitable?

Motley Fool contributor Brooke Cooper 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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