Topic: How To Invest

Do you think that Orocobre Limited, a lithium-potash resource development company in Argentina, has any investment potential?

Article Excerpt

Orocobre Limited, $2.79, symbol ORL on Toronto (Shares outstanding: 91.2 million; Market cap: $254.4 million; www.orocobre.com.au), is based in Australian-based company. Its main listing is on the Australian Stock Exchange. Orocobre and its partner, Toyota Tusho, which is part of the Toyota Group of Japan, hope to soon complete a positive feasibility study on Orocobre’s Salar de Olaroz lithium/potash/brine deposit in Argentina. Orocobre aims to start production at the site in 2012. Toyota Tusho is providing $4.5 million U.S. to fund the completion of the feasibility study. Toyota Tusho will then acquire a 25% interest in the joint venture. The cost of this stake will be based on the project’s value as estimated by the feasibility study. Toyota Tusho will also be responsible for securing a Japanese government-guaranteed, low-cost debt facility for at least 60% of the project’s development costs. Orocobre believes that its deposit has the highest average lithium and potassium grades in Argentina, and is comparable with Atacama brines in…