Lake Resources (ASX:LKE) share price on fire today up 14%

Lithium company Lake Resources is up 14% today. What’s going on?
The post Lake Resources (ASX:LKE) share price on fire today up 14% appeared first on The Motley Fool Australia. –

The Lake Resources N.L. (ASX: LKE) share price is on fire today. At the time of writing, Lake Resources shares are up a hefty 13.77% today to 34 cents a share. That comes after the company closed at 30 cents a share last week, and opened at 32 cents this morning.

So what’s going on with this ASX lithium company’s share price today?

Lake share price shoots higher

It’s not exactly clear what’s lighting the rocket under Lake Resources shares today. There hasn’t actually been any major official news or announcements out of the company this morning. Or indeed since 4 June, when a financial update for its Kachi project was released.

It’s worth noting that Lake Resources’ fellow ASX lithium miners are not enjoying the same sentiment today either. Pilbara Minerals Ltd (ASX: PLS) shares are down 1.43% at the time of writing to $1.38 a share. Similarly, Galaxy Resources Limited (ASX: GXY) shares are also on the nose this morning, falling 2.22% to $3.30 a share.

There might be another factor at play here though.

Last week, Lake released a research report from Orior Capital on its business fundamentals. This Orior report found that the company looks incredibly cheap. It compares the current Lake Resources share price to that of US-based fellow lithium company Standard Lithium Ltd (OTCMKTS: STLHF).

It found that Standard Lithium is currently trading at 107% of its adjusted attributable posttax net present value (NPV). Orior reckons that if Lake was valued with the same model, its shares are worth around $1.89 a share. That would imply a potential upside of 456% from the current share price, and 530% from the share price that Lake Resources closed at last week.

It’s possible that investors have taken some of the findings of this report to heart today.

About the Lake Resources share price

The Lake Resources share price has been a solid performer for investors over the past few months and years. The company’s shares have enjoyed gains of 21.4% over the past week alone, 26% over the past month, a whopping 375% year to date, and 750% over the past 12 months.

At the current share price, Lake Resources has a market capitalisation of $343.4 million.

The post Lake Resources (ASX:LKE) share price on fire today up 14% 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 Bruce Jackson.

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