Seville acknowledged disappointing production shortfall a month or so ago:
“There’s no doubt we’ve got a black mark against us. I reckon there’s a six-month process of rebuilding confidence through delivery of outcomes and we will do that,” Mr Seville told The Australian.
But tend to agree with his longer term view:
“The resource is fundamentally world class and this project will grow in scale and stature. It is upsetting but if we look back in a few years, this will just be a blip.”
20% shorting certainly helping new investors buy-in if confident of story, but personally a little wary of potential for CR's. A history of surprises in that area may have lead to this reassurance:
"Despite the production issues, Mr Seville said there was no need for Orocobre to consider an equity raising to strengthen its balance sheet."
EV growth story looks solid over next 5 yrs so maybe a case of buying on the dips caused by short-term production niggles?
ORE Price at posting:
$2.83 Sentiment: None Disclosure: Not Held