First half results were broadly in line. Production forecasts for the second half were reduced by 40% and the company expects to take longer to ramp up to nameplate.
Macquarie considers the scenario ahead extremely challenging, as the company will produce far less lithium than previously forecast and costs will be substantially higher than expected. The proposed Japanese hydroxide plant is a potential upside, but the broker does not attribute any value to this in its an analysis.
Neutral maintained. Target is reduced to $3.17 from $4.35.
Target price is $3.17.Current Price is $3.05. Difference: $0.12 – (brackets indicate current price is over target). If ORE meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).