Orocobre Limited (ASX: ORE) is in the metals and mining sector and is into the production and exploration of minerals. It focuses on developing Lithium/Potash resources in Argentina. The company operates its flagship Olaroz Lithium Facility and has presence in Borax Argentina S.A. Its key segments include Corporate, South American Salars, the Olaroz project, and Borax Argentina. The company has primary assets like Boron mines and facilities in Borax for processing, and projects related to exploration of Brine.
The company recently updated on the completion of Cauchari Phase 3 Drilling. Advantage Lithium Corporation is a joint venture partner of Orocobre and holds 75% of Cauchari. However, Orocobre has a stake of 33.5% in Advantage Lithium and 25% directly in the joint venture.
The MD and CEO of the company, Mr. Richard Seville commented that the company is pleased as it has completed the third-Phase drilling program at Cauchari. It has started engineering for the feasibility study as well. The third-phase drilling enhanced the expansion of the resource area to the south with greater depths.
The company expects a shift of resources into measured and indicated categories in Q1 CY19 when they will be updating about the resource estimate. The recent drilling has resulted in the intersection with a thick sand sequence which is very encouraging and significant in the way that this is having similar physical structure and substance like the deeper holes drilled at Olaroz in recent past.
ORE is expanding significantly in the unit thickness since it is drilling in the deep sand unit at CAU26, coupled with deeper drilling on the CAU12 and CAU13 platforms. CAU12 met with more than 249 m approximate sand dominated material. The deep sand unit, however, looks promising and has the opportunity at depth, where holes were terminated in the sand and interbedded sand units.
The constant rate pumping test in CAU07 is currently in progress for thirty days in the NW Sector. This will be completed in the middle of January. Due to the well construction constraints, the CAU07 pumping rate is currently on the lower side; however, it can improve going forward, based on the observed aquifer conditions. The complete analyses are expected by the end of January 2019 with Brine samples collected at regular intervals during tests.
Now, let us quickly look at the performance of Orocobre Limited’s stock and the return it has posted over the last few months. The stock is currently trading at $3.330 with 1.77% decrease noted during the day (January 10, 2019). It opened at $3.470 with a day’s high of $3.590 and touched a low of $3.280. It has a market capitalization of $ 886.6 million. It is trading at an earnings multiple of 302.680x with an EPS of 0.011 AUD. The company posted a YTD return of 6.94% and a negative return of 38.03%, 18.31% and 13.52% over the last six months, three months and one-month period, respectively. It has a 52-week high price of $7.440 and a 52-week low of $2.910, with an average volume of nearly 1.1 million.
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