Orocobre's first quarter result was mixed with strong volumes at Mount Cattlin offset by higher costs at Olaroz. Macquarie notes this is the first time production has been declared for all assets post the merger with Galaxy Resources.

The company has upgraded price and volume guidance for Mount Cattlin for 2021. Incorporating updated pricing and guidance means a 7% lift to Macquarie's FY22 forecasts and FY23 is also upgraded by 3%.

Meanwhile, projects are progressing and a maiden reserve for James Bay is due at the end of the year.

Outperformed maintained. Target rises to $12.00 from $11.80.

Sector: Materials.

Target price is $12.00.Current Price is $9.15. Difference: $2.85 - (brackets indicate current price is over target). If ORE meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena