ORE another lithium play

[stevo1]

Well a massive knockdown of 9.3% on the the first day of trading( $6.48 on 10.6 million shares turnover and below the issue uptake of rights to shareholders at $6.55) probably more to do with the news that SQM and Chile have reached agreement to increase production to 4 to 6 times their current production.
Toyota Tsusho paid $7.5 per share or A$282 million for their 15% stake on capitol raising
http://www.asx.com.au/asxpdf/2018011...4nxkqwj216.pdf


https://investingnews.com/lyaily/res...on-deal-corfo/
UBS has reduced their stake under 5% but still hold an amount of borrowed shares which I suspect they have shorted
The rights options are effective worthless at this point so uptake will be on the underwriters
Having Toyota in the mix can only be good for ORE in the future.

[Joshuatree]

Happily taking up my SPP shares, this has been a long and rewarding investment for me and looks to continue a while yet, being a lowest cost producer. S/P bounced back close to a new high after the overreaction,planned, manipulated?

[stevo1]

Happily taking up my SPP shares, this has been a long and rewarding investment for me and looks to continue a while yet, being a lowest cost producer. S/P bounced back close to a new high after the overreaction,planned, manipulated?

I did not take up SPP .Long and continuing investment for me also, free carriage plus booked profits.Today will be whacked down as with almost all else .Possible entry for some.Certainly they are well capitalised and will increase production and profit in the future .247.5 million shares on issue which is a relatively small number

[Joshuatree]

Yes i hope to add more as a global equity base/bottom starts to form at some point. A lowest cost highest grade strategy has paid off in spades and will do in future too imo.There was some luck too in the fortunate timing of lithium price increases as ORE was in development phase and the long time in getting to nameplate. I will take that

[fish]

Yes i hope to add more as a global equity base/bottom starts to form at some point. A lowest cost highest grade strategy has paid off in spades and will do in future too imo.There was some luck too in the fortunate timing of lithium price increases as ORE was in development phase and the long time in getting to nameplate. I will take that

The strong nz/au cross-rate adds to the attraction of buying using upcoming dividends i will be getting.
I am not sure how tax applies to aussie shares.
Vaguely remember reading that overseas investments attract an additional tax.
What are the tax implications of making a capital gain?

[Joshuatree]

Ive been in so long im vague as well fish and the thought of divis, well hadn't thought of that. About a 12 bagger atp for me plus a few trades in it too. 6 monthly report due out today, looking forward to it.

Add-on. may not be 12 bagger as i prob participated in a few cap raises etc, but my orig buy was in the 50's cents i believe, will see if i can find the contract note one of these days and celebrate the sitting, on this one..

[stevo1]

The strong nz/au cross-rate adds to the attraction of buying using upcoming dividends i will be getting.
I am not sure how tax applies to aussie shares.
Vaguely remember reading that overseas investments attract an additional tax.
What are the tax implications of making a capital gain?

Tax in Oz shares treated as NZ shares for tax purposes except no tax credit for franked divs.Oz shares exempt from the additional overseas investment tax.

[fish]

Thanks also for that stevo
I have already started a holding with the intention of holding long-term

[Joshuatree]

S/p dropped a little on results. The usual problem, not enough tonnes produced, re 5,500 , will need about 8,500 2nd half to make the nameplate that they've had years to get to but never seem to although it looked like they were finally there a few months back going on one months production. Will have another read , maybe the weather held up delivery to the ports. The Borax op has always lost money and still is.

[Joshuatree]

Lithium has dropped re20% since Jan

Some loss of confidence by mkt in the pricing, partly due to all the hard rock lithium miners who are way more expensive and many of which are a long way off producing and who wont be able to compete on price anyway.

Remembering ORE is in the lowest cost quartile, $4194 a tonne for F/Y

FY production 12470 tonnes still only 71% of deseign capacity but best qtrs will be in summer(more evaporation)

Ponds are being expanded to evaporate 25,000 tonnes LiCarb then 42,000 tonnes , plant needs to be expanded too

Profit margin $9,000 tonne F/Y

Costs keep dropping

EPC contract for op in japan producing LiHydroxide only $15 milln in costs

Cash of $315 million atm

5th most shorted stock on ASX atm

I have held for many years and will be topping up again.

Toyota bought 15% of ORE in feb @ $7.50 and some entitlements later at $6.50
S/P down from re $7.15 to $4.37 and still trending down with Li price.