Orocobre Limited Reports H1 FY21 Results

Orocobre Limited (ASX: ORE, TSX: ORL) (Orocobre or the Company) a dynamic global lithium chemicals producer, provides its financial results for the half year ended 31 December 2020 (H1 FY21).

Highlights:

  • The lithium market has rebounded and Orocobre prices for H2 FY21 are expected to increase >50% to approximately US$5,500/tonne
  • A successful cost reduction program has seen quarterly cash cost of sales reduce by 28% since September 2019
  • Brine concentrations are higher and more stable than previous years delivering higher plant recovery, better quality and more consistent product
  • Successful capital raise of US$119.4 million, net of fees
  • Statutory consolidated group net loss of US$29.1 million for H1 FY21 is down from a loss of US$18.9 million in the previous corresponding period ( PCP ). The underlying net loss after tax 1 for the group is US$27.3 million with adjustments for restructuring costs, impairment, foreign exchange and other one-off items
  • Attributable group EBITDAIX 1 is negative US$6.3 million, down from positive US$2.2 million, due to weak market prices
  • Total production of 6,079 tonnes of lithium carbonate, down 9% on pcp due to COVID-19 related operational restrictions and market demand
  • Olaroz Lithium Facility results impacted by a weak September quarter, but conditions are improving:
    • revenue of US$27 million, on sales of 7,738 tonnes of lithium carbonate (up 21% on pcp)
    • EBITDAIX 1 loss of US$3.9 million, down from US $6.1 million profit due to average sales price
    • Average sales price received of US$3,492/tonne FOB 2 , down from US$6,157/tonne FOB 2 in PCP
  • As of 31 December 2020, Orocobre Group (corporate + 100% SDJ PTE + Borax) had cash of US$262.3 million following the capital raise
  • Contract position has improved significantly
  • Progress is being made with the construction of the Stage 2 Expansion of the Olaroz Lithium Facility and Naraha Lithium Hydroxide Plant

Orocobre Managing Director and CEO, Mr Martín Pérez de Solay said, "Orocobre has continued to deliver improved operating performance despite COVID-19 disruptions. Our business was impacted in the September quarter by weak market conditions, however the market has improved since the start of the December quarter.

"Our operating strategy retains a focus on safety, quality and productivity which will improve profitability in the future as prices return to a sustainable level. Cost management remains paramount and we continue to eliminate non-essential spend.

"Construction of our growth projects is progressing at the Naraha Lithium Hydroxide Plant and the Stage 2 expansion of Olaroz. We are now looking to the future with a study into Stage 3 at Olaroz and additional lithium hydroxide production," he said.

Future pricing

Subject to market and operating conditions Orocobre expects the average sales price for H2 FY21 to be approximately US$5,500 per tonne (FOB) 2

This announcement has been approved by the Orocobre Limited Board of Directors

For more information please contact:

Andrew Barber
Chief Investor Relations Officer
Orocobre Limited
T: +61 7 3720 9088
M: +61 418 783 701
E: abarber@orocobre.com
W: www.orocobre.com

Twitter: https://twitter.com/OrocobreLimited  
LinkedIn: https://www.linkedin.com/company/orocobre-limited  
Facebook: https://www.facebook.com/OrocobreLimited/  
Instagram: https://www.instagram.com/orocobre/  
YouTube: https://www.youtube.com/OrocobreLimited

Click here to subscribe to the Orocobre e-Newsletter

Notes:

Unless otherwise stated, all financial data in this release is quoted in US Dollars.

Orocobre's results are reported under International Financial Reporting Standards (IFRS). This report also includes certain non-IFRS financial information, including the following:

  • NCI is the non-controlling interest which represents the portion of equity ownership in SDJ PTE
  • EBITDAIX is ‘Earnings before interest, tax, depreciation and amortisation, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures'
  • EBITIX is ‘Earnings before interest, tax, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures'
  • EBTIX is ‘Earnings before tax, impairment and foreign currency gains/(losses), share of associate losses and share of profit from joint ventures'
  • ‘underlying NPAT' and ‘underlying EBITDAIX' being statutory profit being adjusted for certain one off and non-recurring items

Financial data has been translated to US Dollars using average exchange rates for the relevant period in the income statement.

About Orocobre Limited
Orocobre Limited (Orocobre) is a dynamic global lithium carbonate producer and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSX: ORL). Orocobre's interests include its Olaroz Lithium Facility in Northern Argentina, a material JORC Resource in the adjacent Cauchari Basin and Borax Argentina, an established boron minerals and refined chemicals producer. The Company has commenced an expansion at Olaroz and construction of the Naraha Lithium Hydroxide Plant in Japan. For further information, please visit www.orocobre.com .

1 see notes at end of release.
2 Orocobre reports price as FOB (Free on Board) which excludes insurance and freight charges included in CIF (Cost, Insurance, Freight) pricing. Therefore, the Company's reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by Sales de Jujuy S.A., the joint venture company in Argentina managing the Olaroz Lithium Facility.


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

The Conversation (0)
Lithium Africa CEO Tyron Breytenbach.

Lithium Africa CEO Makes Case for Lithium Investing Amid Bear Market

The CEO of Lithium Africa is making a case for investing in lithium during the current bear market, saying recent moves by major players such as Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) indicate confidence in the market's longer-term potential.

“(Rio Tinto) is the second biggest miner of commodities on the planet. And late last year, they did the Arcadium Lithium transaction, which is the second largest transaction in corporate history, and they've picked lithium," Tyron Breytenbach said during an interview with the Investing News Network.

"Shortly after that, they followed on with a big, multibillion-dollar investment in Chile. Again, the commodity they picked was lithium."

Keep reading...Show less
Truck with drill rig at sunset in a dry, grassy landscape.

Rock Bottom: Strategic Window for Ground-level Lithium Investment in 2025

When lithium prices hit bottom, savvy investors know that’s exactly where the next big discovery begins — literally. Beneath the surface of global markets and remote exploration grounds, new opportunities are forming in the wake of a sharp price reset and renewed geopolitical urgency.

Macroeconomic and policy shifts in 2025 are creating ideal conditions for those willing to look past the headlines. While volatility in lithium prices has tempered short-term sentiment, the underlying demand trajectory remains strong. With governments reshaping supply chains to reduce reliance on China and accelerate the energy transition, lithium is emerging not only as a critical resource, but as a strategic investment theme with long-term upside.

For investors, this reset isn’t a retreat; it’s a rare chance to get in early, at ground level.

Keep reading...Show less
Astute Metals NL

Beneficiation Delivers 4,480ppm Lithium Clay Concentrate at Red Mountain Project, USA

Latest results reinforce ability to upgrade Red Mountain mineralisation

Astute Metals NL (ASX: ASE) (“ASE”, “Astute” or “the Company”) is pleased to report further positive results from the latest phase of beneficiation testwork for its 100%-owned Red Mountain Lithium Project in Nevada, USA. The results continue to strengthen the Project’s commercial development potential.

Keep reading...Show less
Pursuit Minerals

Pursuit Dispatchs 99.5% Lithium Carbonate Samples to Potential Strategic Partners as Feasibility Studies Progress

Pursuit Minerals Ltd (ASX: PUR) (“PUR”, “Pursuit” or the “Company”) is pleased to announce that high- purity lithium carbonate samples have been dispatched to multiple parties as part of its engagement with prospective offtake and strategic partners. The samples were produced from the Company’s 250tpa Pilot Plant in Salta, Argentina, using synthetic brine chemically identical to that of the Rio Grande Sur Lithium Project.

Keep reading...Show less

Latest Press Releases

Related News

×