"Orocobre – the company that entered the market with a huge tailwind and an underperforming operation is now juxtaposed next to SQM/LAC's world class facility at Cauchari. Propped up by a market shortage for over half a decade, how long ORE stays independent remains an open question."
SQM/LAC, as far as I can tell, are not producing anything yet at Cauchari, Nov 2016 is the latest news I can find, albeit after only a very brief search...
"Lithium Americas spent years as the Rodney Dangerfield (someone who gets “no respect”) of the lithium industry. In early 2016 they sold half of their flagship project in Argentina to SQM for a pittance and were widely scorned. By early 2017 it was clear the move was prescient – SQM was clearly “all in” on developing a world class lithium asset in Argentina and Ganfeng became both LAC’s largest share and debt holder. LAC along with SQM and Ganfeng collectively became known as the “good guys” – a counterweight to the heavy handed “evil lithium empire” led by then #1 ALB. The rapid development of Cauchari phase 1 enabled phase 2 construction to start earlier than expected."
"The rapid development of Cauchari phase 1"? Have I missed something? Have they started production between the Nov 2016 update and now? Or maybe JL scored a contract with them, hence he is now spruiking their (non existent) wares.
So these non producers are "world class" and ORE has been "propped up by a market shortage over half a decade"! What drugs is this guy on?
His final comment there is interesting, re: how long ORE will remain independent. I wonder if he thinks ORE may be a takeover target?
ORE Price at posting:
$3.60 Sentiment: Buy Disclosure: Held
