This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Emerging Lithium Producers Nearing Production In 2013

Orocobre's Olaroz project

Orocobre's Olaroz lithium-potash project is located in Argentina's Puna region — a hotspot for lithium brine reserves. The Olaroz project is a joint venture between Orocobre (66.5 percent), Toyota Tsusho (TSE:8015) (25 percent) and the Jujuy government (8.5 percent). In July 2012, Orocobre received final governmental approval to commence construction of the project.

A definitive feasibility study (DFS) completed in May 2011 shows an after-tax NPV of $449 million (at a discount rate of 7.5 percent) when the value of the potash by-product is included. Cash operating costs are projected at $1,230 per MT of lithium carbonate when potash is included as a by-product. The DFS also includes a resource estimate of 6.4 million MT of lithium carbonate and shows a mine life of more than 40 years based on a previously planned annual production rate of 16,400 MT per year (mtpa). The planned annual production rate was recently revised to 17,500 MT of battery-grade lithium carbonate due to an increase in the expected brine grade.

Last month, Orocobre's Japanese partner helped the joint venture secure $192 million in debt financing from Mizuho Corporate Bank. With funding in place, construction commenced at the end of 2012 and Orocobre has targeted the second quarter of 2014 for first production.

Lithium Americas' Cauchari-Olaroz project

Lithium Americas' Cauchari-Olaroz lithium-potash project neighbors that of Orocobre in Argentina. In December, the company received final approval from the Jujuy provincial government for the project's development, including a 20,000-mtpa lithium carbonate processing facility and a 40,000-mtpa potash processing facility.

A company press release notes that the Cauchari-Olaroz deposit hosts enough proven and provable reserves (more than 2.7 million MT of lithium carbonate) to operate at an annual production rate of 40,000 MT for 40 years. A DFS on the project shows net cash operating costs of $1,332 per MT of lithium carbonate (when potash is included as a by-product), giving it the potential to be one of the lowest-cost operations in the industry. The DFS has also determined a pretax NPV of $738 million with an IRR of 23 percent.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,773.66 +95.76 0.57%
S&P 500 1,959.39 +8.57 0.44%
NASDAQ 4,471.46 +18.6680 0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs