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puna.jujuy

141 Posts.

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10/10/16

09:13

Post #: 19736180
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Originally posted by DoctorFouad ↑

IMO its the fault of orocobre management not being transparent enough about the quality of their lithium they were selling. if they told the truth from the beginning, things would have been better (marketing wise). Joe Lowry got criticized a lot and IMO unfairly by orocobre shareholders, because he told the truth about the quality of orocobre lithium reprocessed in china. As a general rule of thumb, shareholders should take seriously what independant experts/consultants have to say. True, no expert is 100% indepedant, they are all on a pay roll one way or the other, so they could be biased towards such company or another one, but generally they dont just lie like that about numbers. they live by their reputation telling the numbers to those who pay, if they loose their credibility, they are done.

This is another reason orocobre got lucky, not only higher lithium prices allowed the company a "life saving" 85M$ capital raise in january 2016, but also it allowed the company selling sub-quality material at a high price.

IMO, quality will improve over time, if the chinese are able to reprocess the lithium and purify it even further, then Orocobre can do it too. it just takes time to achieve most of the production at the highest quality possible.

Given the difficulties they ran into producing traditional lithium carbonate, i can only imagine what difficulties they will encounter if they go the hydroxide new tehnology plant route. IMO orocobre is not ready yet for that unknown adventure. Better they expand their production with lithium carbonate and use what they learned from the super lengthy commissioning and ramping up prodcution process. this is already a 3 years of trial and error process, they cant afford another 3 years of trial and error for a new process. Once they expand production, they have enough cash, they could start taking more risks and go hydroxide route. Until then, better they stick with what they learned.

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Again I totally agree with you DoctorF.

ORE has a lot of problem but the first one is the lack of transparency. Probably you are new here in the forum but if you have some time for reading my old posts you can discover that we were expressing here the same. Surely you are putting more emphasis in the things due to your better manage the language (sorry I am from Argentina with some English limitations).

I am only choosing one of my old post:
http://hotcopper.com.au/threads/ore...2876079/page-40?post_id=18931260#.V_eQ4GdkDDc

and extracting a paragraph:
……the nameplate capacity is so far. It’s so far if we think in the 17500 ton year of Battery Grade. It’s impossible to achieve in years this with the Battery Grade quality. The normal production of this quality is around a maximum of 20 ton day. No more.
A production of 50 ton day is possible only with Industrial grade. The three sources consulted said that the 17500 ton year is a reality only as Industrial grade. So surely ORE will inform soon about this achievement without talking about level of quality.
Remember only volume and nothing about quality……
DYOR

ORE Price at posting: $3.32 Sentiment: None Disclosure: Not Held
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