- A resolution of Orocobre's (ORE.AU) tight working capital position appears to be more critical than getting its Olaroz lithium project in Argentina operating at capacity, Canaccord Genuity says.
The broker thinks liquidity at Orocobre and at the Olaroz JV will be A$3 million and US$4 million at end-March, respectively. "As such, we await updates on options to address working cap shortfalls such as product prepayments, additional debt facilities or even new equity,"
Canaccord says. Some assistance may come from any fall in the Argentinian peso. Orocobre has been striving to lift output rates at Olaroz toward its planned capacity of 17,500 tons/year. Canaccord keeps a buy call, and lifts its price target by 9.7% to A$3.40/share.
ORE last traded at A$2.25. ([email protected]; @dwinningWSJ)
(END) Dow Jones Newswires
ORE Price at posting:
$2.32 Sentiment: Buy Disclosure: Held
