As far as new brine resources are concerned, there isn't one. ORE is the first new brine operation in the last 20 years, and the engineering required to design the processing plant was not available to them. In spite of this, they have designed, built and are operating a processing plant that has the third lowest cost of production in the world. The plant was responsible for almost 40% of Argentina's lithium production in 2016.
The evaporation ponds are working below capacity, however ORE has assured shareholders that the issue is due to an error in the pond management algorithms and has been resolved.
The primary processing circuit (producing industrial grade Lithium Carbonate - 99%) has been operating at greater than design capacity.
The purification circuit (purifying industrial grade to battery grade (> 99.5% purity) has required modification to reach nameplate, and ORE has stated that these modifications are complete so that the overall plant production should achieve nameplate once the pond re-balancing is complete.
ORE will provide updated production guidance this month. I guess we will all know more then.
ORE Price at posting:
$3.24 Sentiment: Buy Disclosure: Held
