Orocobre Limited: Half Year 2017 Accounts Presentation
Brisbane - Orocobre Ltd. (ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF) is pleased to provide the Company's latest presentation on Half Year Results 2017 and Strategic Update.KEY NUMBERS 1H FY17
- Strong 1H FY17 Production and Financial Performance
- Production of 6,542 tonnes of lithium carbonate, up 309% on prior comparative period (pcp)
- Olaroz sales revenue of US$60.5M on 6,588 tonnes, up US$56.1 M on pcp
- Olaroz operating EBITDAX of US$35.4M
- Olaroz gross cash margin of US$5,660/tonne (62%)
- Improving sales prices
- Olaroz cash flow positive
- Group net profit of US$7.4M, up US$27.8M on pcp
- Orocobre has US$30M cash at bank
GUIDANCE, GROWTH AND MARKETS
FY17 Production Guidance Revised To 12,000 -12,500 Tonnes From 15,000 Tonnes
- Total pond inventory levels appropriate but current inventory profile is restricting production rate at present. Production in 2H FY17 to be approximately 5,500 - 6,000 tonnes to allow desired grade and inventory profile to be achieved
- Significant production increase into 1H FY18. Further guidance to be provided later in this half year
- Operational understanding has taken longer than anticipated but no design impediments to prohibit nameplate being achieved
Simplified Growth Strategy Outlined by JV
- Olaroz expansion to double capacity to 35,000 tpa lithium carbonate production by end CY18
- Revised product mix - 17,500 tpa Battery Grade and 17,500 tpa Industrial Grade of which 9,000 tpa to be used to feed 10,000 tpa Battery Grade lithium hydroxide plant in Japan
- Revised product mix leads to simplified expansion - duplication of bores, ponds and primary circuit
- Fast-track construction of first module of 10,000 tpa lithium hydroxide plant in Japan - fed by Olaroz Industrial product
Strong Lithium Market Fundamentals Persist
- 33 current customers for Olaroz production (Japan, South Korea, Europe, USA and China)
- Strong demand for Industrial (99%) and Battery Grade (>99.5%) products
- Pricing firming to approximately $10,000/T FOB this quarter
- Demand accelerating but significant headwinds for new production. Forecast supply will take longer than analysts' models predict leading to stronger for longer pricing
To view the full presentation, please visit:
http://abnnewswire.net/lnk/22128HGE
About Orocobre Limited:
Orocobre Ltd. is listed on the Australian Securities Exchange and Toronto Stock Exchange (ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentinian-based industrial minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities in the Puna region of northern Argentina.
The Company has built, in partnership with Toyota Tsusho Corporation and JEMSE, the first large-scale, greenfield brine based lithium project in 20 years at the Salar de Olaroz with planned production of 17,500 tonnes per annum of low-cost battery grade lithium carbonate.
Contact:
Richard Seville Managing Director
T: +61-7-3871-3985 M: +61-419-916-338
E: rseville@orocobre.com
Andrew Barber Investor Relations Manager
Orocobre Ltd.
E: abarber@orocobre.com
T: +61-7-3871-3985
