Orocobre’s Share Price Jumps 7.37% following Half-Year Results

After releasing its first half results earlier this week, shares of Orocobre Limited [ASX:ORL] have been edging higher over the last five days.

At time of writing, Orocobre’s share price is $3.79, up 7.37%.

Orocobre’s future expansion projects

Orocobre Managing Director and CEO, Mr Martin Perez de Solay gave shareholders details of the company’s half-year results.

Orocobre has continued to bolster its position as a mainstream, profitable, low cost producer of lithium carbonate.

During Q4 FY18 Orocobre signed three pivotal agreements with our joint venture partner TTC — a new Olaroz Shareholders Agreement, Sales and Marketing Agreement and Orocobre Management Agreement.

Orocobre, TTC and JV boards also gave their approval to the FID for the Stage 2 Expansion of the Olaroz Lithium Facility.’

Mr Perez de Solay also added:

Construction activities for our Stage 2 Expansion are progressing well with development of key items such as production boreholes, a secondary liming plant, evaporation/harvest ponds, roads and camp upgrades.’

ORL reported a half year revenue of US$63.5 million, from sales of 5,163 tonnes of lithium carbonate. The cost production reached $4,251/tonne, with a strong gross cash margin of US$8,044/tonne.

Over the December quarter ORL saw soft lithium carbonate prices, which led the company to anticipate an average sales price for the March 2019 quarter to be around US$9,000 per tonne.

Orocobre’s 2019 outlook

Orocobre is still focused on building a portfolio of lithium, potash and boron projects and facilities in the Puna region of northern Argentina.

While it’s hard to predict where a stock’s share price will trade in the next year or two, these are positive signs from Orocobre — namely the full-year production set to match that archived in 2018 in its Olaroz lithium facility.

But as always, investors will have to wait and see whether there’ll be long-lasting effects.


Ryan Clarkson-Ledward,
For Markets & Money

Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

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