What happened to the Orocobre share price?
Shares in lithium miner Orocobre Ltd [ASX:ORE] have fallen by more than 3% today. That’s despite the general market being strongly up today.
It’s main asset is a lithium brine project located in northern Argentina
For much of 2016 the share price rose on the story of the electric vehicle revolution and the role of lithium-ion batteries to store renewable power. But now Orocobre has fallen out of favour.
Why is the ORE share price down today?
The company released half year results on 28 February. In the outlook and guidance section Orocobre stated production would be revised down on what they had previously forecast.
This was to achieve the desired grade and allow time for evaporation to produce a higher grade lithium.
According to CEO Richard Seville, they’re managing their operation for long term performance, bringing their brine ponds in to balance to achieve a higher grade profile, rather than push short term production.
That was February and still the share price is weak today, in a strong market.
What now for Orocobre Ltd?
Their project is described as first class, but clearly there are some production issues. The continuing weakness in the share price is reflecting that.
You just have to watch the company share price going forward. Look for the price to find some higher support. That might indicate the company is sorting out their production issues. Until the share price starts making some higher bottoms, you’d only be guessing.
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