Orocobre’s shares reached an all time high of $7.44 in late January, having been only $2.60 last March. The run is well deserved given the time, capital and work it has taken for the company to begin lithium production at its salars in Argentina.
Lithium producer Orocobre ((ORE)) has indicated that costs will take longer to fall and production will take longer to hit the target, as it has encountered problems with its inventory. Production guidance has been reduced at the company’s Olaroz project in Argentina.
There has been a strong flow of news for lithium carbonate producer Orocobre (ORE) recently, regarding price increases for this key material used in the production of large-scale batteries. Along with the news flow emanating from ASX companies that are developing hard rock lithium assets, Deutsche Bank observes the current lithium price is quickly providing incentives for new projects.
With first production having been achieved at its Olaroz lithium project in Argentina and the first commercial sale despatched in April, Orocobre has provided an upbeat assessment of the global market for lithium.