Great point Jose.
You're right! in 11 days we will be reading the DFS on Olaroz and the monster NPV of the project. Plus the much anticipated Olaroz drill results from the 6x 200m core holes drilled last year. Keep in mind that the current JORC resource only reflects a depth of 55ms. So I would be expecting an upgraded resource of 2 to 3 times the current one!
If you were a registered shareholder and got to listen in on Richard's teleconference on Tuesday you would be extremely confident that the new Jujuy approval committee is actually designed to assist Orocobre with building more long-term sustainable employment in the region not delay or tax as some may have interpreted. Jujuy is the most pro-mining province in Argentina and wishes to stay that way. The Non-Executive Directors Mr Nicholson and Mr Oris de Roa have had very open lines of communication with Jujuy and Government ministers and have been told the Olaroz project is a key and important development for the area. The approval is not going to delay the release of the DFS, resource upgrade or the latest SG drill results. It can be conducted in conjunction with the finalising of the TT investment and not impact the development's critical path.
Look at the market cap of ORE. $220m with $50m in cash! That's an EV of $170m!!
For a company that is 1.5 years away from producing 15,000t of Li at an operating profit of $3800p/t and 36,000t potash at operating profit of $500p/t. That's $57m and $18m operating profit respectively from their fully funded (JOGMEC financed) Olaroz project. On Olaroz project alone that is a PE of 3x FY13!!
So has the market completely forgotten about the Salinas Grandes project too....I think so...with higher Li grades and potentially an even bigger resource than Olaroz??! plus Cauchari and other smaller salars! These projects will double or triple ORE's valuation, be funded by free cashflow from Olaroz and extend OREs production life for 40+ years
When I look at all the pieces together.... the imminent DFS release, upgraded resource, multi-high grade projects, Toyota partner, secured finance, secured off-take, professional management, local business expertise, community involvement, Enterprise Value, NPV, DCF valuation and low risk profile I can only conclude that ORE is more than just undervalued at $2.27.. Its the BUY of the YEAR!!!!!!
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