T.ORL Orocobre C$2.29
Posted: Wednesday Jan 25 8:33:31AM 2017
ORL.to/OROCF +.36 to C$4.90 Big pop today in Orocobre. No news so could just be a new recommendation from a newsletter?? Orocobre matched it's 52 week hi intraday at C$4.94. This is still the best pure play in lithium. They are slowly but surely headed towards nameplate capacity and prices are slowly but surely moving towards the market. They had a fair number of orders at below market prices that were sold before the recent price runup. They shouldn't have many more of those.
Posted: Thursday Dec 15 8:43:21AM 2016
ORL.to -.17 to C$3.94 positive feasbility study to double production capacity to 35,000tpa. Not sure why stock is selling off. Should be good news. Additional studies are being done on building a lithium hydroxide plant in Japan.
Posted: Monday Aug 8 8:46:28PM 2016
T.ORL Orocobre continues to make progress towards full capacity. Interview with CEO as of 7/26/16 revealed that plant is at 80% capacity and guidance is for 3300 to 3600 tonnes in Q3 at US$10000/tonne or 33 to $36million gross revs for the lithium plant. He stated that costs are around $3500/tonne so gross margins will be 21 to 23million dollars.
I'm not sure if plant has to be at nameplate capacity before they declare commercial production and start showing revs and costs in P&L but it would certainly help Orocobre's market cap if they could show the huge jump in revs and cashflow that has happened since lithium carbonate prices have doubled to $10,000+. They are about done filling low priced commitments and should start receiving full market pricing in Q3.
Full production is 4375 tonnes/qtr so not that far away.
Posted: Wednesday Jul 27 2:32:17PM 2016
Orocobre sold off today and so I added a few shares at C$4.08. I still think Orocobre is the best way to play the lithium market. It is a producer, unlike most of the other lithium stocks. The biggest actual producers are diversified industrial chemical companies and are not pure plays. ORL.to is a pure play and will soon be amongst the biggest producers of lithium in the world. I will probably trade these latest shares if ORL.to climbs back towards C$5.
Posted: Saturday Jul 23 6:41:02PM 2016
Orocobre sold off because they missed guidance by a small amount. But on 7/29, Tesla is due to open their Gigafactory. Should light up lithium stocks and ORL.to should be one of them.
Posted: Saturday Jul 9 6:44:26PM 2016
T.ORL +.29 to C$4.62 Orocobre has proven to be a good stock, flirting with a double. Lithium production expected to get to full capacity by the end of this year. Lithium prices seem to be holding up due to increased demand from both auto makers as well as utility grade battery units to store excess energy from sporadic wind and solar utility power generation.
Posted: Friday Mar 18 10:37:48AM 2016
Sorry, didn't post the interview that I referenced:
Orocobre talks production and lithium market environment
March 16, 2016 02:30 PM
Carolyn Herbert: Hello I’m Carolyn from the Finance News Network and joining me from Orocobre (ASX:ORE) to discuss the company’s progress is Managing Director and CEO Richard Seville. Richard, welcome to FNN.
Richard Seville: Pleasure, great to be with you.
Carolyn Herbert: Now before we get into the questions, can you perhaps introduce the company to us?
Richard Seville: Certainly. We had our IPO at the back-end of 2007. Olaroz was our focus then and it has remained that way ever since. We completed our feasibility study in 2011 on the development of the project, kicked off construction in the beginning of 2013 and produced our first purified tonne of lithium carbonate in early 2015 and since then we’ve been ramping up production.
The company is listed on the ASX and the TSX, we’re in the ASX300 and we’ve got a market cap of about $500 million.
Carolyn Herbert: Ok, now Richard to your progress at your Olaroz lithium facility, what have been the highlights there?
Richard Seville: Well, over recent times our focus has been about ramping up production. We had a number of bottlenecks left over from construction and so over the last 12 months we’ve been working through those. We hit breakeven in January with a production level of just less than 700 tonnes, increase that in February to 761 and should be at nameplate capacity in September that’s a bit over 1400 tonnes per month.
Our focus right now is all about improving operating practices, maintenance practices, and getting the efficiencies out of the plant that would be necessary for nameplate capacity.
Carolyn Herbert: Now moving to Argentina, can you talk about the recent change in government there, policy changes and what this means for the company?
Richard Seville: Look, the last few years weren’t easy operating in Argentina; everything was tight, importation controls, high inflation, but with the change in government life has become a lot easier. Inflation will work its way into the system and that’s the plan by government but from us directly we’ve had the dollar clamp removed which allows us access to foreign currency. Importation controls have been removed and export duties have also been removed. It’s moved back to what we’d all consider a normal environment; the kind of environment you’d operate in Australia, for example.
So, for us, it’s a major change; we did really well to keep things going at the right pace with the previous administration. With the current administration the shackles are off and we’re in a great position.
Carolyn Herbert: And a more general question now Richard, there’s a lot of interest in lithium given demand from electric carmakers and battery producers; what’s Orocbre’s approximate share of annual production and what’s your current view of the lithium market and market outlook?
Richard Seville: Well it’s a very exciting place to be at the moment, when we’re at capacity we will be producing less than 10 per cent of the world’s demand. We’re entering the market at a great time – supply is tight, there hasn’t been the increase in supply that people were expecting. In fact, we’re really the only new supplier that has come to fruition.
From all the other projects that were around some years ago, and demand is growing strongly, you mentioned carmakers, you mentioned battery producers. The battery sector is not only the portable electronics and electrical equipment but also stationary battery farms, power smoothing where they’re working on the grid, all that kind of stuff, you’ve seen Tesla’s power wall. There’s big demand then in applications in power and then of course the automotive sector which you referred to as well. So for us it’s a great time, prices are rising strongly, everybody’s seen the current spot prices in China. Contract pricing may not be achieving those levels of pricing but we’re achieving prices now that we would not have thought possible back a few years ago.
In terms of our customers, we are supplying to all three sectors; chemicals manufacture, technical greyed into industrial usage, and to the battery sector. And there are strong prices in all of those sectors. So, a very good time to get into the market for us.
Carolyn Herbert: And now to your recent capital raising, can you tell us a bit about that?
Richard Seville: Yes, we really wanted to make sure we would never have to raise money again. We raised $85 million. We have a very good support from existing shareholders, we also brought on board Australian, Asian, US and UK new institutions. The kind that have a profile of long only, sticky investors so they’re in it for the long haul. People who wanted to be in the sector and to be there for, let’s say, 3 to 5 years time frames, they’re a very good calibre of register we’ve built up. The $85 million basically covers principle interest paid for the project over the next 12 months and money to go in the debt service reserve account whne we have completed successfully our completion tests and then buffer.
So it’s about providing the balance sheet that takes us through for the long haul.
Carolyn Herbert: And finally Richard, what are the key targets for the company in 2016?
Richard Seville: Really there is only one worth talking about and that’s achieving nameplate capacity in September or before September this year at Olaroz. That’s what the focus is on the year and we’re going to work very, very hard to achieve that.
Carolyn Herbert: Richard Seville, thank you for the update.
Richard Seville: That’s a pleasure, good to talk.
Posted: Thursday Mar 17 12:34:49PM 2016
ORL.to +.27 to C$3 Orocobre is the only major producer to build a new lithium plant in the last few years. This interview with the CEO in Australia sparked the Australian market and today the Canadian markets. In the interview he states their one goal is to reach nameplate capacity by 9/16 of 17,500 tonnes/year. This production level would mean Orocobre is producing 10% of the world's lithium production. I like Orocobre because it's producing, has just passed break even operating margins and looks to be a major player. The other big players are diversified chemical companies with less than 50% revs from lithium. Orocobre is the newest, biggest pure play lithium producer. It's not cow pasture, it's not hype, they are producing now into a near term shortage that could last 1-2 years. Should still have upside, especially if they decide to double production. They begin studies to determine feasbility of that this qtr.
They have already identified massive reserves that will last decades at nameplate capacity.
Posted: Monday Mar 7 6:38:15AM 2016
ORL.to +.18 to C$2.56 lithium plant moving towards full production in fall 2016. Lithium carbonate prices in China have more than doubled in 2016
Orocobre Limited (TSX:ORL) Olaroz February Production Above Target
Brisbane, Australia (FSCwire) - Orocobre Limited (ASX:ORE) (TSX:ORL) (OTCMKTS:OROCF) (Orocobre or the Company) wishes to advise on production for February at the Olaroz Lithium Facility.
Production continued to rise in February with 761 tonnes of lithium carbonate produced, in excess of the internal target of 725 tonnes for the month. This is an improvement on the 699 tonnes produced in January and the 427 tonnes produced in December.
Production guidance for the quarter of approximately 2,400 tonnes remains unchanged.
Managing Director, Richard Seville commented; "We are pleased with the continued improvement and above target performance for February and we look forward to achieving our quarterly production target."
To view figures, please visit:
Read more at http://www.stockhouse.com/news/press-releases/2016/03/03/orocobre-limited-tsx-orl-olaroz-february-production-above-target#Qt6RzWEGPogramd6.99
Posted: Friday Jan 22 9:34:08AM 2016
Orocobre has done a fairly large capital raise of A$85million. The size of the raise may have been their bankers wanting more cash to make sure they get to commercial production. Stock is trading little changed from before the halt. Probably due to the strong market for lithium and the dearth of near term producers of any size. There was also a new presentation that says they may have trouble reaching their nameplate capacity of 17,500 tonnes/year. So something must not be working properly. They have had several delays in production but this raise should be the last.
Orocobre Limited (ASX:ORE, TSX:ORL ) (Orocobre or the Company) is pleased to announce it has raised A$85,000,000 through a placement (the Placement) of 40,476,190 shares to domestic and international institutional and sophisticated investors at an issue price of $2.10 per share, representing a 10.7% discount to the 5 day VWAP of the Company’s shares prior to the Company entering into a trading halt on 20 January 2016. The Placement will significantly strengthen Orocobre’s financial position and available cash balance. The proceeds of the Placement will be used principally to service financing costs related to the Olaroz project, including principal and interest payments due in March and September 2016 and payments to the Debt Service Reserve Account. Other uses of funds are detailed in the Company’s latest presentation, released to the market today. Of the total Placement approximately 25,350,551 shares (representing $53,236,157 of the Placement) will be immediately issued pursuant to Orocobre’s existing 15% capacity under ASX Listing Rule 7.1, with the balance of the shares (15,125,639) to be issued subject to and upon receipt of shareholders’ approval, to be sought at a General Meeting to be held on or about 29 February 2016. The Lead Manager and Bookrunner for the placement was Canaccord Genuity (Australia) Ltd.
Posted: Wednesday Jan 13 4:34:11PM 2016
Bought some this week. Lithium is one of the few commodities with rising prices. Tesla is attracting attention not only for their cars but also their energy storage battery packs for homes with solar panels. Several large players are planning/building battery factories like the Tesla Giga factory over the next several years. Not sure if it's long term but prices in China have been spiking to extreme levels recently. Normal prices have been in the high 5,000/tonne range but recently there have been rumors of prices in the 10,000+ range in China, where most batteries are produced.
Here is the latest presentation by Orocobre:
Orocobre is bringing their new lithium mine online in Argentina. The recent election brought in a more mining friendly government and many of the onerous restrictions on mining and finance have been modified in favor of the miners wanting to do business in Argentina.
The mine is in production and the company is gradually increasing production. Breakeven is reported to be around 650 tonnes/month and they are very close to achieving those levels. Forecasted commercial production capacity is 17,500 tons of lithium carbonate per year or 1,458 tonnes/month. Mine should be declared commercial in early 2016.
Orocobre has a Toyota sub as a minority partner and a government agency also has an equity interest. This is a big lithium mine and has reserves to last decades as well as exploration potential.