ASX listed Orocobre has shown how resources companies ought to behave for investors

John Robertson

ASX listed Orocobre has shown how resources companies ought to behave for investors. The company's market value has doubled since April to just under $280 million while the small resources share price index - supposedly made up of the best of the growth oriented stocks in the sector - has dropped another 6%. Orocobre is constructing a lithium production plant in Argentina with a view to commencing production by June 2014. Despite the proliferation of resources companies proposing new projects, few have done so successfully over the course of the most recent cycle. Unsurprisingly against this backdrop, investors have been departing the sector. Orocobre is showing what can happen if companies get it right: the share price goes up, even if sector prices are generally falling! There is a chart of the Orocobre share price and the small resources share price index at (VIEW LINK).


John Robertson

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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