OrocobreOrocobre Ltd. (OTC: OROCF) is an Australian lithium mining company involved in the discovery, development, and operation of lithium deposits. With lithium now a key metal used for alternative energy and electric vehicles, this bargain stock is becoming increasingly attractive to investors.

Over five years, Orocobre has significantly grown its revenue and income. This reflects the wider growth in the lithium market. Lithium is used primarily for battery storage, making it essential for electric vehicles, solar panel energy storage, smartphones, and a range of devices. Orocobre increased revenue from $21.35 million in 2016 to $114.98 million in its 2020 fiscal year. The gross profit margin is positive at 11.60%.

The company is yet to turn a positive EBITDA margin, reporting -23.55% for 2020. EBITDA may remain negative in the short-term as the company invests heavily to establish and streamline its operations. The value in this stock is speculative, but it will be worth the risk for many investors. Lithium demand is expected to increase significantly over the next 30 years.

A price target of $2.01 suggests short-term returns are available. Long-term, this stock will slot right into an alternative energy portfolio.

Key Data:

  • 1 Year Price Growth: -1.37%
  • YTD Price Growth: -1.37%
  • 3 Month Price Growth: -18.83%

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