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- Orocobre (ORE) has recorded strong quarterly sales following a successful sales campaign and solid market demand for lithium carbonate from its Olaroz facility in Argentina
- The global lithium producer says sales for the March quarter came in at 3032 tonnes priced at US$5853 (around A$7687) per tonne free-on-board (FOB)
- This price represents a more than 50 per cent increase on the company’s December quarter last year
- In fact, the company says that lithium prices received by Olaroz are now up nearly 90 per cent on the last six months
- ORE anticipates the upward trend will continue into the June quarter
- In light of the estimates, the company says forward sales enquiries for all grades of Olaroz lithium carbonate remain strong with production budgeted for the 2022 financial year already fully sold and subject to variable pricing
- Olaroz will commence stage two production in the second half of 2022
- Orocobre shares are up 2.74 per cent, trading at $5.62 each
Orocobre (ORE) has recorded strong quarterly sales following a successful sales campaign and solid market demand for lithium carbonate from its Olaroz facility in Argentina.
The global lithium producer says sales for the March quarter came in at 3032 tonnes priced at US$5853 (around A$7687) per tonne free-on-board (FOB).
This price represents a more than 50 per cent increase on the company’s December quarter last year.
In fact, the company says that lithium prices received by its Olaroz operation are up nearly 90 per cent on the last six months.
ORE anticipates this upward trend will continue into the June quarter with lithium carbonate prices expected around US$7400 (roughly A$5634) per tonne FOB, subject to shipping schedules.
If correct, the estimate would be the highest pricing received by the company since June 2019.
Off the back of this, ORE is expecting subsequent pricing roughly 20 per cent higher than previously guided in the second half of the financial year.
In light of the promising estimates, the company says its forward sales enquiries for all grades of Olaroz lithium carbonate remain strong with production budgeted for the 2022 financial year already fully sold, subject to variable pricing.
Full details of Orocobre’s March performance are set for release in the company’s production report on April 21.
The company previously suspended works at Olaroz due to COVID-19 in November but has advised the plant will commence stage two production in the second half of 2022.
Orocobre shares are up 2.74 per cent, trading at $5.62 at 1:22 pm AEST.
