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.
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