Orocobre Set to Meet Long-term Increase in Lithium Demand

The Australia-based miner posted a record sales price of US$12,578 per tonne free on board for lithium carbonate produced at its Olaroz facility in Argentina in the 2018 fiscal year.

Lithium producer Orocobre (ASX:ORE,TSX:ORE) released its full-year financial results on Tuesday (August 28), saying it is well positioned to meet the expected long-term increase in lithium demand.

The Australia-based miner posted a record sales price of US$12,578 per tonne free on board for lithium carbonate produced at its Olaroz facility in Argentina. The company said that the price in the fiscal 2019 so far had averaged US$14,000 per tonne.

“Global market fundamentals for lithium have recently been questioned with decreases in Chinese spot market prices. While short-term price volatility is to be expected, it is important to note that the Chinese spot market is only a small part of the overall global market,” Richard Seville, Orocobre’s managing director, said.

“Additionally, long-term fundamentals remain intact with ongoing, and increasing support from government, regulators and consumers for the move to electrification of transport and installation of electrical storage systems,” he added.

Orocobre reached statutory net profits of US$1.9 million and had available cash of US$316.7 million at the end of the period.

At Olaroz, production reached a total of 12,470 tonnes of lithium carbonate — a 5-percent increase year-on-year. Meanwhile, total sales revenue increased 24 percent year-on-year to US$148.9 million.

“We’ve had record production, we’ve had record prices, we’ve had record profits and we’ve established ourselves as a high margin, low-cost lithium chemicals producer. And we did some transformative funding for our expansion project at Olaroz and our lithium hydroxide plant.

“So we’re in a great position to be expanding our production to feed the rapidly growing demand in the sector,” Seville told Fairfax Media.

Looking ahead, the miner is fully funded to develop the US$285-million Stage 2 expansion at Olaroz. The development will allow the company to increase production to 42,500 tonnes of lithium carbonate per year.

“We are also preparing to construct a 10,000 tonne per annum lithium hydroxide plant with strategic partner Toyota Tsusho (TYO:8015). The final investment decision process for both projects is expected to be finalized shortly,” Seville added.

Aside from Olaroz, Orocobre operates Borax Argentina, a boron minerals and refined chemicals producer, and has a 33.5-percent interest in Advantage Lithium (TSXV:AAL).

In a note to clients, Eight Capital analysts said the fiscal results had no surprises and continue to recommend Orocobre as a buy with a target price of C$8.70.

“Pond capacity has now increased ahead of production, Olaroz has positive operating cash flow and the lithium outlook is excellent,” they added.

Similarly, Credit Suisse analysts said Orocobre had delivered an “in-line result” and a stronger 2019 was projected.

On Tuesday (August 28), shares of Orocobre were up 5.81 percent in Sydney, closing at AU$4.37.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Advantage Lithium is a client of the Investing News Network. This article is not paid-for content.

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.


– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.


Keep reading... Show less

Discovery Harbour Provides Newcrest’s Planned Program for Fortuity 89, Nevada

Discovery Harbour Resources Corp. (TSXV: DHR) (OTC Pink: DCHRF) (FSE: 4GW) (the “Company” or “Discovery Harbour”) is pleased to announce that Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Limited (“Newcrest”), has provided the details of its planned program for the Fortuity 89 epithermal gold property in Nevada.

The Fortuity 89 property covers very limited outcrop surrounded by a large covered area. The outcrop and interpreted geology are prospective for concealed low sulphidation epithermal gold mineralization below shallow unconsolidated alluvial gravels. Newcrest’s planned activities include a geophysical program encompassing a 675 line kilometre drone airborne magnetic survey, a 250 station ground gravity survey and a 45 line kilometre audio band magnetotellurics (AMT) resistivity survey. It is intended that geologic and alteration sampling and mapping will also be undertaken with a soil geochemical sampling program. The intended outcome of this program is to identify potential drill targets for testing this calendar year.

Keep reading... Show less

Blackdome-Elizabeth Gold Project 2021 Exploration Plan and Update

Tempus Resources Ltd. (“Tempus” or “the Company”) (ASX:TMR)(TSXV:TMRR) is pleased to provide an update on the exploration plan for the upcoming field season at the Blackdome-Elizabeth Gold Project, located in British Columbia, Canada

The 2021 exploration program at Elizabeth and Blackdome is fully permitted and on schedule to commence at the end of Q2, 2021. The program will consist of 7,500 metres of down plunge and along strike diamond drilling at Elizabeth to expand the known gold mineralisation, in parallel with detailed alteration and mapping studies at Blackdome in support of future resource expansion drilling.

Keep reading... Show less

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Top News

Related News