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AKE - Allkem Limited

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ormond

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Couldn't find a thread on this co so thought i'd start the ball rolling.
Bought a few today for the exposure to lithium and potash

Orocobre Limited is an Australia-based exploration company. The Company’s business involves exploration on its lithium, copper-gold and silver projects, which are principally in Argentina. The Company’s two principal projects are Olaroz Lithium Project and Santo Domingo Porphyry Project. The Olaroz Lithium Project (lithium, potash and boron) consists of 7,600 hectares of tenements (cateo’s) over a salar (salt lake) known to contain high values of lithium in brine. The Santo Domingo Porphyry Project (copper/gold/molybdenum) is located in the Jujuy Province in the elevated and arid Puna region in the north - western part of Australia.
 
Re: ORE - Orocobre

The news flow fom this co. will start flowing soon with JORC and scoping study results due late march or early april.
Lithium will benefit from President Obama's spending on alternative energy and battery-run autos.
Any one else following this co?
 
Re: ORE - Orocobre

I have held this company for a few months now. Early days yet but long term shows great potential. With the Earth trending toward an electric/renewable future the Olaroz salar is a great asset.
 
Re: ORE - Orocobre

mojohand said:
I have held this company for a few months now. Early days yet but long term shows great potential. With the Earth trending toward an electric/renewable future the Olaroz salar is a great asset.
Click to expand...

Orocobre Limited (ASX: ORE) is pleased to report a maiden resource estimate at its Orocobre Lithium – Potash project in Jujuy province in north-west Argentina. Independent resource specialists Geos Mining of Sydney, Australia have reported an Inferred Mineral Resource of:

350 million kL of brine at 800g/kL lithium and 6,600 g/kL potassium.

This is equivalent to 1.5 million tonnes of Lithium carbonate and 4.4 million tonnes of
potash (potassium chloride) based on 5.32 tonnes of lithium carbonate being equivalent
to 1 tonne of lithium and 1.91 tonnes of potash being equivalent to one tonne of
potassium.
 
Re: ORE - Orocobre

"OLAROZ LITHIUM – POTASH PROJECT SCOPING STUDY
• Potential to develop a long life operation with production of 15,000 tpa lithium carbonate and 36,000 tpa potash.
• Resource base sufficient to support future expansions.
• Exploration potential beneath the current resource.
• Excellent chemistry with attractive lithium and potassium grades, low magnesium: lithium ratios and attractive sulphate levels.
• Conventional processing routes applicable with low technical risk.
• Capital costs estimated to be in the range of US$80m-US$100m.
• Low cash operating costs and strong operating margins indicated. An operation would be competitive with current low cost brine producers.
• Company to undertake a Bankable Feasibility Study which is expected to cost approximately US$2m and be completed in mid-2010."

Be good to get JV for funding with so few shares on issue the upside could be huge imo.This could come on the radar of overseas investers as lithium supply continues to be tight.DYOR
 
Re: ORE - Orocobre

Company to split into ORE and Elements Minerals Q4 this year.
E.M. as public offering. Operations near Mt Isa and Nthn NSW as well as Argentina
 
Re: ORE - Orocobre

I know that this is a very newbie question, but I can't help wander why would ORE shares gone up over 400% while the company is actually losing money and not profitable. Could anyone help me make sense of this?
 
Re: ORE - Orocobre

888 said:
I know that this is a very newbie question, but I can't help wander why would ORE shares gone up over 400% while the company is actually losing money and not profitable. Could anyone help me make sense of this?
Click to expand...
Read the report on Ormond's post 8 Sept. In a nutshell lithium and to a lesser extent potash. Lithium is used in ceramics, glass industries and batteries. Electric and hybrid vehicles will be using batteries manufactured from lithium. Warren Buffett has invested millions in a Chinese company that is manufacturing these batteries and cars. Add in GM Renault Toyoto there is going to be a huge demand for lithium Ore has some excellent lithium deposits in Argentina.
 
Re: ORE - Orocobre

I have held a bit of this stock for a while now, and have to say I am very pleased with the results. Even though Potash isn't especially "cool" right now, and the prices have come off quite a bit, you would have to say Lithium is very sexy (just look at reed resources (RDR) price hike when they mentioned they had some Lithium.
However, the mining costs at altitude in the Andes would seem to be quite high, especially when compared to the potential of Reward (RWD) at Lake Disappointment. Reward, incidentally, seem to have a massive amount of Lithium as well in Lake Dumbleyung. Exciting, but early days....
 
Re: ORE - Orocobre


Thanks for the reply maungatapu, I read Ormond's post 8 Sept, I read about the Lithium and Potash part but I also read that based on their revenue forecast, they're not expecting to be profitable until 2012 ($16 Million profit expected). How much Lithium are we talking about here?
 
Re: ORE - Orocobre


As you say early days. Possibly 5/6+years away providing they get a license to mine. Operating costs would I presume be quite a bit higher by then. MP Securities has estimated the operating costs for ORE are estimated at US$2120/t taking into account the potash credits of US$21/t plus capital costs of approx US$92m The price of Lithium carbonate is US$6500/t
Based on these figures turnover in 2012 would be $65m 2013 would be 97.5m
producing 10,000t then 15,000t the following years depending of course on operating costs, the LCE price and the A$/US$ exchange rate.
 
Re: ORE - Orocobre


According to MP Securities research based on data from two drilling programmes sampling and hydrogeological tests in April this year ORE provided an initial JORC compliant inferred resource of 1.5Mt lithium carbonate (280,000t lithium metal) and 4.4Mt of potash.. The resource was based on a lithium and potassium concentration of 0.08% & 0.66% respectively that extended to an average depth of 55m
 
Re: ORE - Orocobre

Looks like Lake Disappointment could be out of the picture now. Would not be surprised if Reward does not get a license Lake Dumbleyung either. Reward would be a long wayoff producing any lithium.
 
Re: ORE - Orocobre

What are the prospects for ORE now that it has a joint venture with TOYOTA? Alhough the stock price has increased, it still doesn't(IMHO) seem to reflect the significance of this venture.
 
Re: ORE - Orocobre

i dont think toyota is a friendly name at all lately.. especially in the Usa.. they slag the crap out of them everywhere, but i guess this is just them trying to back up their auto industry big names.. (was just in the us last month)

otherwise potential in this company.. i would like to see how they come out of this trading halt.. i would love to pick some up for under $2.. but that seems like a long shot now.
 
Re: ORE - Orocobre

Yep,
Salinas Grandes discovery would boost ORE to the $3 level soon. The Canadian listing TSX and stock auction will put the cap on it for March....
 
Re: ORE - Orocobre

I've being researching Lithium recently. The talk is that Lithium will be used extensively as a power source for new tech cars and be similar price as oil.
An American company Li3 hold a significant number of licences in North and South America. And there is talk of a boom in the price of Lithium.
Apparently Lithium can be easy or difficult to extract and Orocobre's resource in South American falls into the easy category with the added bonus of good access to transport infrastructure. Hence Toyota's commitment.
Any comments on where the stock price might end up?
 
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