Orocobre (ASX:ORE) report challenging market conditions

Company News

by Rachael Jones

Orocobre (ASX:ORE) released their December quarter key highlights showing the Olaroz Lithium Facility responded to challenging market conditions by reducing operating costs 16 per cent quarter on quarter (QoQ) and achieving a gross margin of 24 per cent to retain positive operational cashflow.

The realised average price achieved was US$5,419/tonne.

Significant progress has been delivered on both growth projects at the Naraha Lithium Hydroxide Plant (Naraha Plant) and Olaroz Stage 2 Expansion, while Olaroz operations remain on track to deliver increased production for FY20.

Subsequent to the end of the quarter, two contracts have been signed for the supply of battery grade lithium carbonate to top tier Chinese cathode manufacturers.

Shares in Orocobre (ASX:ORE) are trading 0.61 per cent higher at $3.31.