Ann: Advantage Lithium release study on Cauchari JV, page-5

savvy - also I'm still not sure why Orocobre has to raise $100m in debt when it says that it has fully funded phase 2 with the cap raising. Maybe the US$285m capex figure provided is another Richard Seville special and there are other associated costs of phase 2 that have not been included in the capex calculation (???). But on the face of the information provided Cauchari runs a distant second to phase 2 of Olaroz as an investment by Orocobre.

Just on the Cauchari project, Orocobre has a 25% direct interest through its jv with Advantage but has another 21.75% indirect interest in the project by way of its 29% holding in Advantage (as of 2 July presentation). So all up Orocobre is into funding 47% of the equity side of the Cauchari project. To me this makes it an either or situation between the Cauchari project and a phase 3 of Olaroz. Being involved in Cauchari and Advantage has given Orocobre some dilution of financial risk I suppose but the fact that the two projects are next to each other means that Cauchari carries pretty much the same risk profile as Olaroz so again it comes down to a simple financial calculation of which project offers Orocobre shareholders the better return.