Olaroz Lithium Facility production up 28% on previous quarter
BRISBANE, Australia, July 2, 2018 /PRNewswire/ -- Orocobre Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the Company") provides an update on lithium production at Olaroz.
Production for the June quarter was the second highest ever achieved at 3,596 tonnes, up 28% on the March quarter. Sales were 3,496 tonnes with a record realised average price of US$13,611 per tonne on a FOB basis which resulted in record quarterly sales revenue of US$47.6 million. Sales volume, price and revenue remain subject to verification of bill of lading data relating to 240 tonnes of material which was due for shipment on 30 June, 2018. Final figures will be available in the full June Quarterly Report which will be released prior to the end of July.
Unit cost of sales for the quarter has not yet been finalised but is expected to be lower than the previous quarter due to the higher production. Gross cash margins are expected to be higher than the record March quarter (US$9,177 per tonne).
Production for fiscal year 2018 was a record 12,470 tonnes, up 5% year on year, sales were 12,080 tonnes and the average price received for 2018 was a new high of US$12,586/tonne, up 29%. Total revenue for the year was a record US$152 million which was up 27% on the previous year, subject to confirmation as previously described.
The higher production rate in the June quarter was in line with expectations with both the lithium carbonate plant and the the pond system operating well. The strong performance was inspite of lower than average evaporation rates through the half and are a testament to the much improved pond management practices.
Early works on the Phase 2 expansion have continued throughout the quarter with the construction of ponds, roads and camp infrastructure. A further update will be provided in the full quarterly report.
A teleconference will be held at 2.30pm AEST, 2 July. This can be accessed via the Orocobre website (Latest News and Announcements).
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SOURCE Orocobre Limited