Todays announcement has left me feeling immensely confident in the company's future, since my initial investment in 2014 this company has had its ups and downs but I feel now it is truely on it's way to join the big 3 as a significant lithium player.
- Current/future operating costs stated (higher than expected but will fall with time)
- $10,000+/tonne next quarter (even with higher operating costs we have an extremely high profit margin)
- Timeline for phase 2 stated (Doubling production at 40% less CAPEX than stage 1)
What are your fair value estimates when taking into account what the company released today ? What would the company look like @ 35,000ktpa? (Once I finish exams I will try to construct a DCF model)
In the announcement I noticed on page 6: "Olaroz production can expand in line with market growth" --- Is this referring to phase 2 expansion or can Olaroz expand further if the market demand is there?
Obviously the company should focus on one thing at a time and ensure that phase 2 expansion goes to plan however as I'm a LT holder I'm intrigued how much the company could potentially produce by say 2020 and onwards.
From the company presentation in March 2016:
"SALAR DE CAUCHARI:
- Immediately south of Olaroz plant, inferred resource 470Kt LCE, 1.6Mt KCL & 122Kt B
- Potential for incremental production for Olaroz
- Drilling of Cauchari planned for
Q3 2016 with a view to define a larger resource and conduct pumping tests
SALIINAS GRANDES
- Li-K project with excellent grades & chemistry
- Inferred Resource 240,000t LCE, 1.0Mt KCL & 12Kt B (2)
- Synergies with Olaroz and potential to produce a concentrated brine product in a JV with a local partner"
(
@niu if you have any comment on the potential of these resources it would be greatly appreciated)
@niu I've invested in ORE purely for its lithium production but am intrigued as to what role borax and potash credits play... Is it just a minor side business or can be they be used to reduce our costs significantly? ... I ask you because you have great technical expertise and I strongly respect your input on this forum. (any comment would be great thanks!)
Anyways sorry for the long post.. I'm just hoping to create a discussion around what the company's options are beyond phase 2 .. could we be potentially a 50,000+ ktpa producer by the end of the decade?
GLTA .. everything is looking solid!
