Report Cover Page

Contents

Where are we in the Cycle?
Recently improved metal prices still leave the sector slightly below the historical average for this far through the cycle with further impediments to growth and headwinds to market rebalancing becoming evident.   More...

Market Directions
Improved sector stock prices came with a boost to confidence about central bank support for markets but this remains uncertain ground as limits to the effectiveness of monetary policy loom larger.    More...

Portfolio Performance and Positioning
More mature Phase II and Phase III stocks did best in the past week as Phase I companies gave up recent gains. No portfolio changes were initiated in the absence of positive signals from the PortfolioDirect cyclical guideposts.    More...

Stock Reviews and Rating Analysis
Orocobre Limited (ORE:AU) has been rated ‘3+’ on the five point PortfolioDirect rating scale. The company displays a high quality asset base with low and falling project risk warranting a relatively low discount rate in the assessment of the underlying value proposition but the beneficial value impact of operational enhancements and improved financial outcomes are being offset by a market re-pricing of the company. A foreshadowed commitment to an expansion with a 2019 impact on sales implies potential for positive value momentum. The PortfolioDirect valuation of the company (prior to the assumption of an expansion) falls within 5-10% of the current market price. With an expanded production base, the PortfolioDirect valuation falls within a range of $4.35-4.70 per share implying a potential 30% upside in the current market value of the company. .
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Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

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