Orocobre Forecasting 3,000 Tonnes of Lithium Carbonate Production for Q2

Orocobre (TSX:ORL,ASX:ORE) provided an update on the ramp up of production at its Olaroz lithium facility in Argentina. The company produced 2,332 tonnes of lithium carbonate for Q1, in line with its ~2,400 tonne production target, and is now targeting 3,000 tonnes of production for Q2.
As quoted in the press release:

• Production ramp up continues with production of 2,332 tonnes of lithium carbonate during the quarter versus a target of ~2,400 tonnes (97% achieved). This is an increase of 1,224 tonnes over the previous quarter. Operating cash cost breakeven was achieved, and debottlenecking program completed, in January.
• Commercial dispatches of high purity, “battery grade” product made to first battery market customers in Q1 with additional customers scheduled for delivery in Q2. • Production forecast for Q2 is approximately 3000 tonnes.
• Q2 lithium carbonate price expected to be over US$7,500/tonne FOB1 with further increases expected as we move further into CY2016. ( 1 Net of agency fees, international freight and insurance)
• Studies for the expansion of Olaroz Stage 2 will commence in Q2 with a scope of 17,500 tpa additional LCE at an estimated CAPEX of ~US$140m.
• Draft report of the first stage of the evaluation of the Bateman Advanced Technologies (BAT) LiSXTM process is expected at the end of April.
• Competitiveness improved by devaluation of the AR$ and removal of export duties on lithium carbonate.

Click here for the full press release.