Orocobre Limited
(ASX:ORE) has experienced severe weather conditions in the Puna region of Argentina and Chile, which has led to lower than expected production rates at its Olaroz Lithium Facility.
As a consequence, the lithium and borax company says its FY17 lithium carbonate production will be about 11,700 to 11,800 tonnes amid the snowfall and cloudy conditions since May. For the June quarter 2,400 to 2,500 tonnes are expected.
Orocobre says the region experience the worst weather since the early 1980s and because of that, it had to suspend production for three days at the facility, while it also experienced a short-term backlog of exports held at the site.
The company says while the weather conditions had short-term impacts on production, its shipments, evaporation rates, and overall processes are developing as expected.
Shares in Orocobre Limited
(ASX:ORE) last traded over 0.5 per cent lower to $3.56.
