It certainly has been an eventful year for the Orocobre Limited (ASX: ORE) share price and its shareholders.
This morning the lithium miner's shares climbed 5% to reach an all-time high of $5.24.
Yet only seven months ago the Orocobre share price was at a 52-week low of $2.62 and it was far and away the most shorted share on the Australian share market with almost one-fifth of its shares held short.
Since then, its shares have doubled in value and short interest has reduced to 13%.
What happened?
Orocobre came under a lot of pressure earlier this year when it was forced to downgrade its production guidance.
Due to inventory management requirements, production guidance was revised down to between 12,000 and 12,500 tonnes of lithium carbonate from 15,000 tonnes. This was done in order to allow the desired grade and inventory profile to be achieved.
This guidance was then reduced further to between 11,700 and 11,800 tonnes in June due to bad weather.
Ultimately Orocobre produced 11,862 tonnes of lithium carbonate, slightly ahead of its revised guidance, resulting in a maiden full-year net profit after tax of US$19.4 million. Since this result its shares have not looked back and have risen a whopping 53%.
Another catalyst for its share price gain has been the bullish global outlook for lithium.
A number of countries including the UK and China have signalled their intention to ban the sale and production of internal combustion engine vehicles in the not so distant future.
This is expected to lead to the rapid adoption of electric vehicles, heightening demand for lithium carbonate from battery manufacturers at a time when supply is increasingly tight.
Should you invest?
While I am bullish on the industry as a whole and a shareholder of Galaxy Resources Limited (ASX: GXY), I do think that the lithium miners are about fair value now.
In light of this, I would suggest investors hold out for a pullback in their respective share prices before making an investment.