ORE 5.11% $6.13 orocobre limited

Little to no risk for the brine body - it is at sufficient depth...

  1. niu
    1,510 Posts.
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    Little to no risk for the brine body - it is at sufficient depth and permeability so low that surface water is not an issue. The original resource studies focussed on the top 200m but the resource extends well below that level. 

    The weather data at Olaroz Chico shows they have had similar rainfall to last year, but maybe a little less cloud (January looks to have been better than last year but February has had a cloudy beginning). 

    So I would be expecting a reduced output this quarter, but perhaps not as severe a reduction as last year due to
    1. Sunshine looking a little better than last year (at this stage, anyway), and
    2. A little more inventory held in both the old and the new ponds.

    Sales/revenue will be bolstered by the large inventory that was carried forward from the last quarter provided it moved before the rains arrived...

    Longer term, they will have more ponds, and more inventory relative to the planned output. They may also have the crystallisers they talked about last year. They will likely have many more dry years than wet... This is a long life project and although a bit of rain might excite the shorters, it doesn't change the fundamental picture. 
 
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