butch Granted that I am clueless about price predictions but I...

butch

Granted that I am clueless about price predictions but I don't reckon people are hanging out for the quarterly. The market has pretty much given its assessment of what phase 1 of Olaroz is worth. Sure the company has struggled to have consistent production and has never looked like hitting nameplate but the fact is that it was given the go ahead based on a lithium price of $6500 a tonne and currently they are getting twice that. The conditions for phase 1 are unlikely to get any better and apparently the market has concluded it is a billion dollar operation at best.

What may change things is if and when they pull the bloody trigger for phase 2. For the life of me I cannot understand what has caused them to delay a FID on phase 2 for well over 2 years given the price that they are missing out on. That Richard Seville continues to prevaricate about phase 2 is enough for me to think that the market is not willing to factor in phase 2 to the current ORE market price. The market has been caught out too many times before by Richard Seville for it to give him the benefit of the doubt again. My guess is that the market will give a different valuation on Olaroz if it were to become a 42,000 tonne nameplate operation.

One thing that should be interesting in the quarterly is how much cash they are building up. Again, at $13,000 a tonne this operation should be a massive cash accumulator. If it cannot do that under these circumstances then it all has been lots of stress and effort for little gain.