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They did use the terminology “at least 5% better” at one point....

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Quiono

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24/08/19

10:55

Post #: 40131989
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Originally posted by oneuponedown: ↑

they say in the call that they are deliberately only producing ~12500t to focus on margins and product quality which I am not buying and considering they are not even filling the newly constructed ponds at the moment I think you are right and they really need to come clean and be transparent. It’s not like the mine has a short lifespan and they need to hold back on pumping so that they don’t run out of brine when prices increase. I’d be happy with the the last 5tonne to be produced at say20% margin, but it seems to be a cop out that reduced production is to protect margins. Also disappointing to hear that there is no progress on the additional crystallisers/evaporators that they have talked about for ever. CEO and COO leaving + shorting should really flag investigation. Fortunately we are making good margins and lithium prices will improve and go straight to the bottom line for no extra effort or investment. Studying the publicly available recorded weather for the nearby olaroz Chico location over the last 10years (this has been confirmed by Richard Seville to certain degree previously in a Q&A that it should be very close to conditions onsite), there is nothing largely different in the past 3 years to averages, so either whoever did the DFS was massively optimistic, or the weather excuses are another cop out. Again some transparency and facts and figures regarding their weather excuses would not go astray. I was happy enough with the numbers for this year but very disappointed in the forecast production.

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They did use the terminology “at least 5% better” at one point. Let’s hope that is an under promise.

ORE Price at posting: $2.35 Sentiment: Buy Disclosure: Held
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