Ann: Company Presentation, page-40

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Cassandra

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18/11/15

09:00

Post #: 16420024
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Originally posted by niu ↑

Don't forget TTC - they also contribute SBLC funding in proportion to their 25% equity position.

Revenue to date on 934 saleable t @ 6,000 USD/t = 5.6m USD
Revenue should now be running at better than 1.9m USD/m based on October production rate, and improving month by month.

There will be some lag in receivables but this should be minimal - they are booking the sales as quickly as they can prepare B/L and get them on a vessel. In the current market environment I would be surprised if they haven't got payment against shipping docs.

If breakeven at SDJ Olaroz is at around 650 t/m with selling price of say 6,000 USD/m, then monthly cash costs at Olaroz will be less than 3.9m USD/m (assuming lower reagent consumption at lower throughputs up to this point)

Irregular outgoings
remedial works - circa 8m to 9m USD. One would equally expect that they have made the effort to extract favourable terms out of their suppliers .

P&I -
first installment 7.0m USD in Sept
next installament 13.5m USD in March

Is March a problem?
It depends on what happens in December and January. We need to see the expected step change in output...
And then there are the project level measures - prepayments etc

SDJ SA won't be distributing profit to ORE/TTC/JEMSE for some time. What will happen is that as they become cash flow positive they will reduce the overdraft which will release funds from the SBLCs back to ORE and TTC respectively - a much quicker process than waiting for a dividend.

The pilot plant - the announcement states clearly that a mini pilot plant will be built at BATs site in Israel as stage 1 of the hydroxide investigations. This is a laboratory exercise - the main cost here is time and disbursements. They will be using lots of well used laboratory test equipment - it will have seen recent service on Western Lithium and Pure Energy investigations. There should be very very little in the way of capital type expenditure. I would be surprised if stage 1 runs to more than a couple of hundred thousand... Stage 2 (pilot plant) will cost more but does not need to start until March 31. The dollars will flow out a little further down the track.

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Hi niu, you wrote “SDJ SA won't be distributing profit to ORE/TTC/JEMSE for some time:” I thought that JEMSE’s capital contribution to Sales de Jujuy was financed by Toyota Tsushu and Orocobre and that JEMSE’s profit share goes to repay this funding. Is that your understanding?

Cassandra

ORE Price at posting: $1.61 Sentiment: Hold Disclosure: Held
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0 Great analysis

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