Lithium carbonate production at Olaroz was 3,727t of lithium carbonate (LCE), up 58% from the previous quarter, and 4% above the December 2019 quarter.
The analyst highlights that with increased output (around 85% of nameplate) costs declined -9%.
Morgans retains a long-term price of US$10,500/t for LCE. The broker also shortens the projected period of weaker prices and lowers short-term costs to generate a value and target price of $5.15.
The rating is lowered to Hold from Add due to recent share price strength, and the target price is increased to $5.15 from $3.36.
Sector: Materials.
Target price is $5.15.Current Price is $5.00. Difference: $0.15 – (brackets indicate current price is over target). If ORE meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
