ORL.to/OROCF -.07 to C$3.86
Orocobre selling off with the rest of commodities. Not sure markets understand improving cashflows at Olaroz plant.
ORL got ~$7500/tonne for lithium carbonate in qtr ending 6/30/16. Has issued guidance that many of the original backlog orders were filled in Q2 and Q3 will be closer to spot markets so they are forecasting US$10,000+/tonne for Q3. That's a huge increase in gross revs of over $8million dollars that will increase cashflow by that amount.
Actual financials of Orocobre are fuzzy because they still haven't declared commercial production at Olaroz so not including Olaroz P&L in consolidated results yet. BUT based on forecasted price gains, cashflow should be $8million better in Q3.
Several other catalysts. Should announce results of expansion feasibility study in October. Doubling production capacity will dramatically expand potential cashflow but will require financing. Company has delayed reaching nameplate capacity several times but should reach 17,500 tonnes/annum by 11/16. That should allow them to declare commercial production and include Olaroz in financial results by yearend.
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