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19/04/18
15:57
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Morgans has updated guidance today:
■ The Sales de Jujuy (SDJ) lithium brine operation (ORE 66.5%) in Argentina suffered low evaporation rates at the brine ponds, with the evaporation rate for the March 2018 quarter 24% below that for the March 2017 quarter. Production of 2,802 tonnes of lithium carbonate was down 29% from the December 2017 quarter, but above the March 2017 quarter of 2,784t.
■ Orocobre revised projected production for SDJ (100%) down from 14,000t in FY17/18 by 10%. Weak production in the quarter will lead to higher unit costs, although margins will be above those in the December quarter (>US$7,600/t).
■ More significantly, the harvest pond inventory is up 30%, and the concentration of plant feed brine is up 20%, confirming that the pond management issues are rectified. Our valuation has lifted from A$7.68 to A$8.07 with a stronger projected LCE price, and the target price is up to A$8.87 (from A$8.44).
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Last edited by
dyeman :
19/04/18