interesting reading from 21/11/2018Many ASX share market...

interesting reading from 21/11/2018

Many ASX share market speculators have been attracted to the lithium space as the metal is an important ingredient in the batteries required to power electric vehicles.Given that the production of electric vehicles globally looks set for accelerating growth over the long term it makes sense that demand for lithium is going to rise. So while it’s possible that an oversupply of lithium could eventually hurt prices one there’s one lithium miner that is already posting healthy profits with big plans to grow.

So here are 5 reasons why Orocobre Limited (ASX: ORE) could be a good bet for investors.

1 - It’s already profitable in posting a net profit after tax of US$1.9 million in FY 2018, or on an adjusted basis it posted a profit of US$25.7 million when backing out asset impairments and some other non-cash costs.

2 - The group has a strong balance sheet to invest with cash on hand of US$308.7 million as at September 30, 2018, its net cash position is US$221.7 millionI

3 - t’s achieving rising prices for its lithium mined mainly in Argentina. For the September 2018 quarter the price received was US$14,699 per tonne, compared to US$11,190 per tonne in the September 2017 quarter.

4 - Its cost of sales is falling from US$4,987 per tonne mined in the September 2017 quarter to US$4,640 in the September 2018 quarter

5 - It has substantial capacity expansion plans and is fully funded to implement them given its balance sheet strength.

Published on : https://www.fool.com.au/2018/11/21/5-reasons-orocobre-limited-asxore-could-be-the-best-lithium-share-on-the-asx/