Ann: Orocobre Limited - December 2018 Quarterly Report, page-31

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niu

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30/01/19

20:54

Post #: 37271115
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Originally posted by wgdt72: ↑

So in August we get an update "Strong operational earnings and ready for growth"

Stating
"FY19 price received to date of approximately US$14,000 per tonne"

We then get this Dec qtrly with
"Quarterly sales revenue was US$32 million,
down 20% on the previous corresponding period (PCP) with a realised average price achieved of US$10,587/tonne on a
free on board basis (FOB)3"

To me we just lost 40% profit there this qtr which hurt a lot.
the blow was softened by improved costs/tonne and increased production.
Though we were warned in Sept Qtr ann the Dec Qtr sales price would be softer. Forwarned i guess.
" It is expected that the pricing achieved in the December quarter will be below that
achieved in the September quarter......"

So not a good report on the face of it.
However if you take into account that hopefully they will be aiming higher this qtr as advised in August then hopefully we will see an increase in sale price/tonne.
Remembering that this Phase 1 project is aiming for 17500kt of Battery grade product.

We also have the carbon capturing mods that should be in this qtr which should aid to reducing costs further. Anyone got an idea on how much cost this would save????

We also have $284m in cash floating around somewhere. LOL

What is our DEBT? @niu (tag not working for some reason) i get
"As at 31 December 2018, Orocobre corporate had available cash of US$284 million"
"net group cash at 31 December 2018 is US$216.7"
So does that make it around $70m debt? I am guessing the 1/2yr may shed more light.

I am sure AAL will need more funds in the future. Doh!

IMO there is Zero chance of ORE not placing itself in a strategic position to make a decent multi billion dollar business out of this given the foundations laid over these last 5 years an the next 2-3y.

The next 5 years should see a different world and a very different ORE.

Long term though it would appear to me that ORE is set for a very positive future though i am sure lots of road blocks as well.
Just hope us retail holders get some profit out of it.

Luck all.

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Hi wgdt72 - missed your question while travelling... need to be careful about project debt vs ORE's share thereof. Following is from the AGM presentation

• ~US$70M principal of the Project Debt(~37% reduction) repaid by 10September 2018 and US$17.1M paidinto DSRA
• Project Debt balance reduced to~US$122M during September 2018(US$105M net of DSRA)
• Project Debt repayments scheduledevery six months to September 2024
• Project Debt incurs a low averageinterest rate of ~4.25%
• Orocobre group net cash wasUS$221.7M at 30 September 2018

ORE Price at posting: $3.20 Sentiment: Buy Disclosure: Held
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Ann: Orocobre Limited - December 2018 Quarterly Report, page-31

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